[Oct/2022 | RE] Ultimate Guide to Wholesaling Real Estate Notes
感觉这本书应该是某个upsell funnel的第一步LOL, 内容不深, 取长补短.
Real Estate Wholesaling: Marketing Input -> Real Estate Output
Distress driven marketing:
In Missouri, divorce is public info – source of distress (i.e. molawyersmedia.com).
Delinquent property tax -> most likely don’t have mortgage-based escrow -> most likely high equity.
If area don’t have cash buyer – leave it out. Even if more distressed sellers.
Talk to seller
Response to “How do you get my name” – “Direct mail list targeting older neighborhoods.”
Info gathering – most are common procedures
Great question – “What’s the style of the house?”. Answer might be “Contemporary / Century Modern.” Or it might be “this is a piece of junk”. 间接测量 seller motivation.
Goal : Keep the seller talking & gauge level of motivation.
Ask “reason for selling” directly.
This book’s style of appointment is bring contract & intend to sign it on spot.
MAO计算 – 本书采用70%法则
Educate seller on the “reality” of the market. Frame it as “Buyer + Seller against market” instead of “Buyer against Seller”.
Estimating Rehab Cost (for midwest):
Sqft heuristic: perfect – $5 / sqft as contingency, $15-20 / sqft mid-sized rehab, $25-30 / sqft higher end material, $40-50 / sqft for gut rehab / top of line material.
5K heuristic: each big ticket item assume $5K as approximation.
Contract
CYA clause – “subject to partner approval”, “subject to tax / title / value”. (Very subjective / vague terms that gains advantage).
Build Buyer Base
Need to build reputation with buyer – honesty / integrity etc.
Craigslist – to build buyer base.
Monetization
Co-wholesale / JV
Use other wholesaler as JV – search “sell my house fast [locality]” and call the websites.
Local threshold (per author) is 5K for decision between assignment vs. double close in exit.
Whole-tail numbers: 100K PP, 15K rehab (cleaning / paint+carpet / landscaping), try to sell for 170-180K.
Follow-up
Dead lead recycle – “Pleas stop calling me” – use CRM to follow-up in 6-month / 1 year etc.
Alternative monetization :
Reverse-wholesaling, Co-wholesaling.
Subject-to: mortgage remain in seller’s name, but house is buyer’s. 🙂 Buyer pay mortgage for seller.
Case Study:
Wholesaling property with tenant requires coordination of potential buyers / tenants / seller. Very difficult.
In St.Louis (?), rent < $800/month likely means tenant is more difficult / higher maintainance. So author owner finance it to existing tenant. (With some down payment / alternative being lease option). Has leverage because tenant don’t want rent to go up.
Sell properties via auctions! Example in St. Louis: http://housebrokerauction.com/