Hi Everybody!
Hope you are all having a great weekend so far!
Are you getting ready to cheer on your favorite team in the Super Bowl? (Or as I like to call it- the Stupid Bowl. Hehe). I’m not a big football fan (at all), but I do like to watch the commercials.
While all of you are eating chicken wings and drinking beer, I’ll be answering phones at my brother Niko’s pizza shop in Clearwater. This is always a real good time, as you can imagine. The phone literally rings off the hook for like 3 hours straight, and the majority of the people who call are hammered, don’t have a clue what they want to order, and can’t be heard over the 685 people screaming in the background. It’s awesome.
So anyway, I told you earlier in the week that I had a guest post coming up from Justin McClelland (I call him Mr. Hustle, btw), which I had meant to post on Friday, but I felt so inspired about giving away the Douchebag Award that it didn’t happen. So I’m bringing it to you today, on this lovely Stupid Bowl Sunday. 
If you aren’t already a reader of Justin’s blog, I recommend you add him to your blog roll. If you look up the word “Hustle” in the dictionary, I’m pretty sure you’ll find a picture of him staring back at you.
Please give a warm welcome to Justin as he talks about 8 different ways to find buyers for your wholesale deals (it’s broken up into 2 videos, as it exceeded the YouTube time limit)…..
[youtube]http://www.youtube.com/watch?v=7UfbDfPeHZ0[/youtube]
[youtube]http://www.youtube.com/watch?v=7Er2Zej0E-Q[/youtube]
Thanks Justin, for doing the videos for us!
If you guys have any questions or comments about any of these strategies, please feel free to ask away- we’ll both be happy to answer!
Enjoy the Stupid Bowl, Everybody!!
P.S.
If you decide to order pizza during the game, don’t forget to be nice to your order taker. Also, it’s helpful if you figure out what you want to order before you call. Just sayin…
P.P.S.
Don’t forget, The Flip This Book Club will be meeting back here tomorrow at 8pm sharp!
P.P.P.S.
Do any of you tech-y guys out there, have any idea why my Facebook Fan Page badge decided to break? I had to take it down today because this is what it looked like in my sidebar:
Then when I went to Facebook to try and get new html to put in the text widget, it looked like this:
Any advice would be appreciated- thanks!!
P.P.P.S
I’m going to be in pizza-order-taking hell for the rest of the day, so if I don’t respond to comments or emails ’til tomorrow, that’s why.
On February 07, 2010 at 1:12pm, Eric said...
Good Video Justin. Steph thanks for sharing. I’m following him on his site too. Also facebook.
How often do you guys put a property under contract without having a buyer lined up or at least interested? I’ve been focusing on finding properties for active buyers in their areas and will put it under contract if they are interested. I ask this because Bandit signs are most likely a great option for having something under contract. I supposed I could advertise someone elses wholesale and do that too. I might try that for now.
Steph, try creating your badge again on facebook. They might have change the URL by mistake. If that doesn’t work, it is probably a temporary problem and will be solved by tomorrow.
Go Saints!!!
On February 08, 2010 at 2:43pm, Stephani said...
Hi Eric,
I usually don’t put something under contract unless I am 99% sure I have an end buyer for it. I will often run the numbers by my buyers while I am still negotiating with the bank, just to get a better idea of where I need to be.
Regarding using bandit signs to sell other people’s deals- I do it all the time when I don’t have anything of my own to sell. It’s a great way to build your buyers list.
Steph
P.S.
Thanks for the tip about the FB badge. It seems to be working OK now, so I’ll try putting it back up there.
On February 07, 2010 at 2:01pm, Scott Costello said...
I feel much closer to you now Justin, although I took a step back after seeing the hat. haha Just kidding.
I liked your tips and how you expanded on some of the normal tips I hear like craigslist and getting cash buyers from driving by houses.
Another great way to get buyers is to network with investors from your REIA. You can use other investor’s buyers.
Scott Costello´s last blog ..Book Review: The Five Major Pieces to the Life Puzzle
On February 07, 2010 at 8:24pm, Chris Rock said...
Justin, Hey dude, I use zabasearch.com with a lot of great success to find numbers for buyers. Give it a try…
On February 08, 2010 at 2:44pm, Stephani said...
Never heard of zabasearch, Chris. I’ll have to check that out- thanks!
On February 08, 2010 at 2:36pm, Shawn said...
Hello! Steph, if you dont mind me asking, what is a realistic number that I can expect to make in wholesaling a year if doing it full time? I know it depends on the market area but just trying to see. thanks.
On February 08, 2010 at 2:59pm, Stephani said...
Hi Shawn,
The sky’s pretty much the limit. I know guys who are making six figures/month wholesaling short sales, and then I know people who are just barely getting by. And everything in between.
I would figure out how much you need to make in order for you to live the lifestyle that you want to live, and then adjust your business around that.
Steph
On February 08, 2010 at 2:54pm, Eric said...
Hey Steph,
This doesn’t really apply to the post but I love how you reply to these comments. 2 more follow up questions. Do you normally write offers directly to the sellers agent without a buyers agent? I assume you just use the state approved form and submit it over to the seller agent. Maybe after you get the addendums?
2nd Q: Is it wise to approach REO seller agents for seller financing for any of these types of deals? I’m looking for ways to not have to use Hard Money to lose that profit.
Thanks
Eric
On February 08, 2010 at 3:03pm, Stephani said...
Yes, I make offers directly to the listing agents, using the required FAR (Florida Assoc of Realtors) As-Is contract. Once the offer is accepted, then the bank sends over their addenda for you to fill out.
I don’t know about the seller financing, to be honest. I’ve never tried it myself, nor do I know of anyone who has done it. It never hurts to try and see what happens, though.
Hope that helps,
Steph
On February 09, 2010 at 1:57pm, Eric said...
Hey Steph,
Is seller financing a good way to for wholesalers to only have to put minimal cash down at closing? from what I have read, you just put what is required down for the down payment (20%), then use seller financing to get you to the investor closing and then pay off the note with the amount from the 2nd closing? If this is correct, I assume the REI friendly Title Company takes care of this for us right? I’m just making sure that I don’t want to be funding the entire amount of the purchase price if I don’t need to. Sorry if this is a dumb question.
Eric
On February 09, 2010 at 2:13pm, Stephani said...
Hi Eric,
If you are targeting properties for sale by private owners (as opposed to banks), you only need a small amount of cash for a deposit (I have never given more than $10). There is no need to try and get seller financing, because you are simply assigning your contract to your end buyer and they are the ones actually purchasing the property.
It’s a little different with bank owned deals, because they will not allow you to assign your contract, so you actually have to close on it and then resell to your end buyer. If you have a title co who will do a simultaneous closing (like mine does), then you do not have to worry about brining any money to the closing table at all, so there is no need to ask for seller financing.
Does that make sense?
Steph
On February 09, 2010 at 2:19pm, Eric said...
Ah… I see. So is there any reason to need financing or bring money to the table if you have a good title company like this?
I take it the only reason Hard Funding is used is for those that don’t have a good title company that will do the double closings?
I’m still in search of a good title company here in Virginia. I’m getting close to trying for my first Wholesale deal. Got a couple active buyers and have been researching areas. Just trying to fine tune some details before I start offering. This is a lot of fun so far. Can’t wait to get the first deal done. I’m sure that feeling is great!
On February 09, 2010 at 2:35pm, Stephani said...
The only time you would need financing when wholesaling would be if you are wholesaling an REO or short sale, and you need to actually fund the deal before selling it to your end buyer. In that case, you can use a transactional lender, who will loan you the money for the 10 minutes or so that you own the property before selling it to your end buyer.
Otherwise, there is no need whatsoever to get funding when you are wholesaling, because you are not the one closing on the property- your end buyer is. All you are doing is putting the property under contract, and then assigning that contract to your end buyer who steps in and closes on the deal.
So, don’t worry about hard money or seller financing, unless you plan on closing on the property and keeping it for yourself.
Hope that helps…
On February 09, 2010 at 2:52pm, Eric said...
Most of the properties I have been looking at are REO properties. So since, I most likely can’t use the assignment solution, I suppose I’ll need to bring the entire amount to closing via private lending or a transactional lender, just so I can then turn around and sell it to the buyer right? My current buyers are rehabbers. I’m doing searches to fill their needs.
On February 09, 2010 at 2:57pm, Stephani said...
Yes, if you are going after REOs and you don’t have a title co who will do a simul close, then you would need to bring funds to the table. You just have to make sure to take those fees into consideration when making your offer…
On February 09, 2010 at 3:08pm, Eric said...
I just went back in your video archive thinking you must have gone through this before somewhere… and there it was, your video post in September. This solidified it for me.
One last question, if I don’t need to produce funds for the transaction, what is the best way to show proof of funds for the bank, even though I don’t plan on taking any? Is that where the transactional lender proof of funds form comes in?
Thanks soooo much for coaching me here. You are awesome!
On February 09, 2010 at 3:13pm, Stephani said...
No prob, Eric.
Yes, you are correct about the POF from a transactional lender. I also did a video about that, too. Look through the video archives and you should be able to find it….
On February 09, 2010 at 11:46pm, jason said...
Hey steph,
Glad to my boy justin is doing his thing now. I’ve been following him for a while now. which leads me to my next questions.
How do expired REO listings work
Can you still offer on them, or is it a extra step in the process
Have you ever offered on one, if so is the negotiating easier than regular listings
Getting hard out here in California and I’m using all my resources to find good property. I think these expired listings might do it for me.
Thanks alot.
On February 10, 2010 at 7:31pm, RJ said...
Nice post Steph and great video Justin, thanks for the idea about calling Handyman, great job on the tips. One tip with signs to drive buyers when u dont have properties under contract, or when you do, is this, dress up like a ninja, wear something black, place bandit signs on vacant houses, around the area your farming, do this at night so you wont be seen, then next day wait for phone to ring.
what you want to do is to get there name and email and just say that the particular house is under contract but you have more. if u get someone who calls and asks why u have your sign in your yard, apologize and blame it on your sign person. jk on the ninja costume, hope this helps
cheers
RJ´s last blog ..Goodbye Rat Race!
On February 10, 2010 at 7:35pm, Stephani said...
Great tip, RJ, thanks!
But I think it would definitely work better if dressed as a Ninja. Hehe.
On February 10, 2010 at 9:08pm, Eric said...
Hey Steph,
If a seller agent asks me if I am looking for properties for a place to live or investment. Do you suggest we say investment?
Thanks,
Eric
On February 10, 2010 at 9:10pm, Stephani said...
Hi Eric,
Yes, I would probably say investment if they asked.
Steph
On February 10, 2010 at 9:20pm, Eric said...
Is it wise to build a relationship with a seller agent where you are providing information like…
“Rentals? Resale? What price range? What amount of repairs can you take on? What area are you looking?”
From what I remember reading in your other posts, you want to provide the least amount possible. But it seems if there is an agent who does REOs for a living I might be able to build a relationship with them and get them to bring properties to me. But I’m not sure if this will back fire by providing such information out right.
PS: I’m in for the mentoring program whenever you start that.
On February 10, 2010 at 9:30pm, Stephani said...
There’s nothing wrong with giving them info about the type of properties you are looking for, and you definitely want to be working on building relationships with REO agents if you plan to wholesale REOs.
The only thing I don’t recommend telling them is that you are planning to wholesale the properties that you get under contract, because many of them will not want to work with you if they know you are not the one purchasing the property. Which is understandable…
On February 11, 2010 at 8:10am, Tim (ME) said...
I like this guy! I’m gonna friend him on FB. Thanks Steph.
On February 13, 2010 at 4:03pm, Carey_PA said...
Thanks for the videos Justin and Steph. Justin was very entertaining Steph…I hope we see more of him on your site.
I loved all of his ideas and have used a lot of them. I love putting my detective hat on and along with google, 411.com is an awesome way to get phone numbers and addresses for people.
Btw, for some strange reason I kinda dug Justin’s hat lol Oh and Steph I’m with you in regards to the stupid bowl…..I could care less. Not a big football fan at all. I hope things went well for ya tho and that folks had their orders ready for ya prior to calling!
Carey_PA´s last blog ..From the worse day of my life to taking a seller’s call….
On February 18, 2010 at 1:43pm, Angelica said...
Hi Steph,
When you’re looking for buyers what do you usually ask them.
How do I know if they are the cash buyers or another wholesaler.
On February 18, 2010 at 1:51pm, Stephani said...
Hello Angelica,
I ask them what areas they are looking to buy in, if they have a minimum square footage they are looking for, what type of construction they prefer (concrete block or wood frame), and what price points they are looking to buy at (ballpark). I try to get as much info from them as possible about what they are looking for so I am not wasting their time sending them deals that don’t fit their criteria.
I ask them upfront how they plan on purchasing the properties and let them know most of the deals I sell have to be cash or hard money. If I sense that they aren’t a real buyer I will just come right out and ask them (in a nice way) if they are a wholesaler, and let them know that I work with other wholesalers all the time.
I’ve talked to hundreds of buyers and can usually tell pretty quickly if someone is serious or just wasting my time.
Hope that helps,
Steph
On February 18, 2010 at 2:07pm, Angelica said...
Do you tell them that your deals are REO’s or it doesn’t matter.
I’m just starting out and the few buyers I called weren’t too specific in their criteria, they said they wanted anything, anywhere… When I asked them if they would consider REO’s they said yes.
Any tips. I’m reluctant to make offers when the buyers I contacted are not very clear.
On February 18, 2010 at 4:48pm, Stephani said...
My buyers don’t really care if they are REOs or not, but I always tell them it’s an REO when I send them something just so they know what’s going on.
When I talk to serious buyers, they usually tell me what areas of town they are looking for deals in. The guys who say they want “anything, anywhere” are usually blowing smoke. That’s been my experience, anyway.
I would keep studying your market and looking at the sold investor comps to get a better idea of what a deal is, and then once you feel confident with your numbers, go ahead and start making offers. You don’t necessarily have to have buyers lined up ahead of time- it just makes things a little easier.
Hope that helps,
Steph
On February 19, 2010 at 7:42am, Angelica said...
Thank you Steph, this helps a lot.
I have another question.
How do we find the cash buyers on the MLS? Do I have to pay to have access to it? I have a realtor that sends me REO and MLS listings but I can’t figure out how.
If we go into the banks web sites we can see the properties they have. Are these properties listed or not necessarelly ? How do we know?
Again thanks
On February 19, 2010 at 9:37am, Stephani said...
Here’s a video I posted about how to find cash buyers using the MLS:
http://www.flipthiswholesaler.net/2009/08/reader-mail-how-to-use-the-mls-to-build-your-wholesale-buyers-list/
You don’t necessarily have to pay to get MLS access. I have several friends who are agents who let me use their accounts. If that’s not possible for you, you can either get your license on your own, become a Realtor’s assistant (fees and requirements will vary depending on where you are located), or you can ask a Realtor to pull the info for you…
I’m not sure about the bank websites as I have never used them. I would assume, though, that most of the properties on there would also be listed on the MLS as well.
Have a great weekend!
Steph
On February 19, 2010 at 10:19am, Angelica said...
Thanks again. Have a nice weekend .:)