How to Wholesale Real Estate: Overcoming the F-Word

Hey folks, I’ve got a brand new Reader Mail for you guys!

This installment is all about the F-Word.  (Get your mind outta the gutter…not that F-word).  ;)

Feel free to leave any comments or questions below!

 

Later Gators! :)

P.S.
I’m running a Birthday sale on my products until Friday (2/22) at midnight!
Just enter the coupon code: cougar to receive 25% off your purchase!! :)

Get them here:

http://www.cashbuyerninja.com

http://www.flipthisreo.net

Author: Steph Davis

  1. On February 21, 2013 at 10:53am, Dionne said...

    Hi Steph
    Im new at wholesaling and would like to know how to wholesale a short sale home step by step can you please to a video. Thanks

    • On February 22, 2013 at 9:15am, Stephani said...

      Hi Dionne,

      I’ve never wholesaled a short sale before, so I’m not going to be much help in that department.

      Sorry!!

  2. On February 21, 2013 at 10:59am, Dionne said...

    Hi Steph
    Im a new wholesaler and would like to know how to wholesale a shortsale home step by step can you please do a video? Thanks.

  3. On February 21, 2013 at 12:40pm, Tanisha said...

    Hi Steph, I wanted to know what do you do when a listing agent of a REO wants an earnest money deposit to be submitted with a contract before you know if the bank will accept it or not. Thanks.

    • On February 22, 2013 at 9:16am, Stephani said...

      Hi Tanisha,

      It is normal for them to collect a deposit when you make an offer on an REO. Typically, though, they don’t cash it until after your offer is accepted. You can also add a clause to your contract that says the earnest check is not to be cashed until the offer is accepted.

      Take care,
      Steph

  4. On February 21, 2013 at 6:54pm, Michael Harrell said...

    Thank you. I’m on my 3rd interview and is getting easier. I haven’t gotten to the cash yet but I am on my way. It’s a continuing learning process.
    Regards,
    Mike

    • On February 22, 2013 at 9:17am, Stephani said...

      Awesome, Mike! Keep up the good work!

      :)

  5. On February 22, 2013 at 9:13am, Amy in Chicago said...

    Thank you so much for answering my question, Steph!

    It really helps to know that other people are nervous when they’re getting started and that you were too.

    I’m going to call a bunch of sellers this weekend. Wish me luck!!

    Amy

  6. On February 22, 2013 at 9:17am, Stephani said...

    You’re welcome, Amy.

    Good luck with the calls! Let me know how it goes! :)

  7. On February 22, 2013 at 9:28am, Brandon said...

    Nice view, Steph! How are you liking St. Petersburg?

    • On February 25, 2013 at 10:38am, Stephani said...

      Hi Brandon,

      I absolutely LOVE St. Pete! Gorgeous city, near the beach, always something to do…
      I have zero complaints. :)

  8. On February 22, 2013 at 11:29am, Adam said...

    Hi Steph
    I am trying to fine tune my deal finding abilities and wanted to know what are your techniques for finding various types of deals. I know you do a lot of public mkting with bandit signs etc but do you also try and get NOD lists and contact owners in default or have any methods for seeking out the deals that might be on the mls?

    Thanks Adam

    • On February 25, 2013 at 10:43am, Stephani said...

      Hi Adam,

      The MLS has always been my favorite source for seller leads, although I am considering doing some probate mailings in the near future. I’ve never tried mailing to NOD lists.

      Different marketing strategies are more effective in some areas than others, so you’ll have to do some trial and error until you find one that works well in your market.

  9. On February 22, 2013 at 11:59am, Jai said...

    Thanks so much for the reader mail…Ithnk we have the same fear…I hate to sit and call and call as well but I am much better than when I first started out. Thanks so much Steph you have really been a gateway! HAPPY BIRTHDAY and Happy housewarming!!!

    • On February 25, 2013 at 10:44am, Stephani said...

      Thank you very much, Jai! :)

  10. On February 22, 2013 at 12:16pm, GWS said...

    Receive your info; however your site does not recognize my private domain email. Wanted to obtain your offer for free forms. Wonder if you are losing others who also have a private domain email? Thanks for providing those forms.

    • On February 25, 2013 at 10:44am, Stephani said...

      Hi GWS,

      The forms seem to be working just fine on my end. Not sure what the problem could be…

  11. On February 22, 2013 at 12:26pm, Omar said...

    Happy bday Steph! Just wanted to wish you a happy birthday and wish you much success this year. Of all the real estate teachers you always seemed the most believable to me. You really provide good content for people and you seem genuine so for that I thank you. Still working on my first deal but you deserve some credit for getting me this far. Thank you.

    • On February 25, 2013 at 10:45am, Stephani said...

      Awww, thank you very much for the kind words, Omar- they are much appreciated!

      Keep working towards that first deal, and let me know when you get it closed. Would love to feature you as a success story!! :)

  12. On February 22, 2013 at 9:04pm, Julian said...

    Hi Steph! I am trying to purchase one of your products with a credit card but not a pay pal. How will it allow me to switch it to credit card? It thinks I am trying to pay with a pay pal account which I dont have. Thanks!

    • On February 25, 2013 at 10:47am, Stephani said...

      Hi Julian,

      You have to fill out all of your info on the first page, then click the green “submit” button on the bottom right of the screen, from there you’ll be taken to a page where you can use either PayPal or a credit card.

      Let me know if you still can’t figure it out…

  13. On February 23, 2013 at 12:43am, Darren said...

    Very Inspiring truth about Fear. The hardest part is taking action , but then it gets easier and easier each time.

    • On February 25, 2013 at 10:47am, Stephani said...

      Agreed. :)

  14. On February 23, 2013 at 1:30am, Ned Carey said...

    Steph this is a great tip. It’s a common problem for new investors and not addressed often enough.

    One of the first people I learned RE investing from said, “Your time is valuable don’t go out to see a property unless you think there is a deal.” While this is true for experienced investors I think it is terrible advice for new investors.

    If you wait until you have a great deal to talk to a seller you will be so nervous you may do a poor job and possibly blow the deal. Go our and talk to the sellers that are offering a property priced way to high and have fun trying to negotiate them down. Since it is not a deal to start with you have nothing to lose if you “blow” it.

    When you are learning never hesitate to meet with a seller of questionable deals. Practice on the deals that don’t matte so you will be prepared when the right deal comes along.

    • On February 25, 2013 at 10:48am, Stephani said...

      I agree, Ned. There’s no better way to get comfortable talking to sellers than to actually go out on appointments. It’s scary at first, but gets easier and easier the more you practice…

  15. On February 24, 2013 at 7:55am, Elvis said...

    Great,information. I’m glad I read your blog. I was trying to figure this out for long time, what to do to overcome the fear of how to start talking to sellers. I really like your advise.

    • On February 25, 2013 at 10:49am, Stephani said...

      Glad to hear, Elvis.

      Thanks for stopping by and commenting. :)

  16. On February 25, 2013 at 12:19pm, George said...

    Hi Steph, I am very interested in wholesaling Hud Homes. Anyone you recommend that i study under… name, website etc. Thank you, George

    • On February 27, 2013 at 3:54pm, Stephani said...

      Hi George,

      I don’t know of any courses on the market right now specifically about wholesaling HUD properties. If you do a search on this site for “Nate Andree” you’ll find an interview I did a while back with a guy (Nate Andree) who does very well wholesaling HUD properties. He gives out a bunch of useful info that should get you started in the right direction.

      Hope that helps,
      Steph

  17. On February 25, 2013 at 1:35pm, Adam said...

    I posted earlier on this thread about finding deals. You mentioned you like to use mls but was curious if your are starting to find it harder to find deals on the mls with market improvements and the hedge funds apprently grabbing everything up. Also do you have a membership to the mls and are there any specific techniques or search criteria you use to find mls deals?

    Thanks again
    Adam

    • On February 27, 2013 at 3:56pm, Stephani said...

      Hi Adam,

      Yes, it is definitely more difficult to get properties off of the MLS as opposed to a few years ago, but there is still plenty of opportunity to make $$ with the MLS if you are consistently making offers.

      I’m not an agent, but I get access to the MLS through a friend of mine who is licensed.

      As far as doing searches in MLS, I just look for everything listed under a certain price range in the zip codes I am interested in.

      Hope that helps,
      Steph

  18. On February 25, 2013 at 4:25pm, Mark said...

    Hey Steph, I saw your videos and went to your site. My question is I will be talking to some individuals tomorrow regarding them wanting to set-up an operation that will be financing or supplying the funds for “flippers”, developers and anyone interested in borrowing money for these transactions. As a R/E agent do you feel this will attrach a lot of attention? Having been in lending for years I understand the risk but don’t know how the developers or Rehabbers will react. I’m guessing that they will love the financing. What do you think? Thanks, Mark in CHicago

    • On February 27, 2013 at 4:00pm, Stephani said...

      Hi Mark,

      Most of the investors I know are always looking for additional sources of cash/funding, so I would think this would definitely be of interest to the investors you are working with.

      Good luck, and let me know how it goes.

      Take care,
      Steph

  19. On February 25, 2013 at 8:39pm, Siobhan said...

    Hi Steph,

    As a beginning wholesaler when is a reasonable amount of time working my business before I close my 1st deal? I have heard between 30 to 90 days? Also, does having a mentor accelerate your success as a wholesaler? I am thinking about investing in a mentor/coaching program…can you recommend any programs?

    Thanks,

    Siobhan

    • On February 27, 2013 at 4:03pm, Stephani said...

      Hi Siobhan,

      It really depends on the person and how much they are willing to hustle.
      I know of beginners who have watched all of my videos on YouTube, and then gone out and closed
      their first deal in a matter of weeks. Others take years to get their first deal closed, and some
      give up before they ever close one.

      I know that’s a vague answer, but it really does depend on the person.

      As far as coaching goes, I think if you can find the right mentor, it’s a great way to reduce your learning curve.
      I personally think it’s best to go with someone who is in your own market. Where are you located?

  20. On February 28, 2013 at 12:59am, Julian said...

    Hi steph, just to be clear,what is the difference between assignment of contract and wholesaling? Would any of these work with REO’s? Thanks! :-)

    • On March 04, 2013 at 12:28pm, Stephani said...

      Hi Julian,

      Watch this video- it explains the wholesale process, including how to use an assignment of contract.

      You can wholesale REOs, but you have to do it a little bit differently than when you’re dealing with a private seller. If you go to my YouTube channel (http://www.youtube.com/flipthiswholesaler) there are a bunch of videos where I answer questions about wholesaling REOs.

      Hope that helps!

      Steph

  21. On February 28, 2013 at 5:51pm, Jordan said...

    Hi Steph

    I was wondering which wholesale propertys do you think are easier to find. REO’s
    or homeowner propertys.. And Which ones do you prefer to do?

    Thanks Jordan

    • On March 04, 2013 at 12:32pm, Stephani said...

      Hi Jordan,

      I prefer REOs and listed properties because it’s easy to just hop on the MLS and make offers. There’s a lot more competition with listed properties, though, so you have to keep that in mind.

      There’s less competition for private seller deals, but you’re going to need some money for marketing (postage, signs, etc).

      There are pros and cons to both, but you can make money with either one.

      Take care,
      Steph

  22. On March 04, 2013 at 12:52pm, Adam said...

    Hi Steph

    Thanks is for the great info.

    I was wondering how you go about making offers on REOs. I want to make a bunch of offers but if I want to make 20-30 offers a week I would think an agent wouldn’t stick around to long for me considering that it would be pretty tedious and time consuming. How do you make your offers to banks?

    Thanks
    Adam

    • On July 05, 2013 at 10:29am, Stephani said...

      Hi Adam,

      I usually make my offers directly to the listing agents.
      I find it easier that way, and it never hurts to be giving both sides of the commission to
      the listing agent.

      Steph

  23. On March 07, 2013 at 11:41am, Ginny said...

    Hey Step, just wanted to say that I love your blog and what you do. Awesome job. Secondly, and the reason I am writing is because I have a question….is it possible to wholesale businesses? And is it feasible to do with the basic concept of flipping and wholesaling other properties?

    Thanks,

    Ginny

    • On July 05, 2013 at 10:31am, Stephani said...

      Hi Ginny,

      Thanks for the kind words about my blog- glad you are enjoying it!

      I don’t have any experience wholesalng businesses, but I’m sure it can be done. I would consult with an attorney first to find out what type of contracts you need, though.

      Good luck,
      Steph

  24. On March 07, 2013 at 7:56pm, Steve said...

    Steph,
    I just listened to your video on how to feel out the buyer/seller contract. I assume you are not letting the seller know you will be wholesaling the contract. If you put an option clause in the contract, say 15 day option. What is the reasoning you are telling the seller for this option period?

    Thanks.

    • On July 03, 2013 at 4:49pm, Stephani said...

      Hi Steve,

      I rarely use options anymore, but when I do, I just tell the seller the truth- that I’m not interested in buying the property, but I might have other investors who will buy it.

      Take care,
      Steph

  25. On July 03, 2013 at 12:29pm, Dave said...

    I logged into the findcompsnow.com site and I entered in an address of a property of mine that I have an accepted offer on in Birmingham Alabama for $7,353.00 and it comes up with 100 sales nearby but no prices, sale dates or any cash buyers at all.

    • On July 03, 2013 at 4:47pm, Stephani said...

      Hi Dave,

      It may be more accurate in some areas than others.
      Sorry it’s not working for you. Good thing it’s free! :)

  26. On July 04, 2013 at 3:29pm, Bob Wormuth said...

    Hi Steph, (one of my daughters is named Stephanie by the way) I have located some unfinished homes in my area (North Port, Sarasota County). One in particular is a 3/2/2 asking price $42,900 that is about 1/2 finished. This home will sell for about $115k new. My question is do you have any experience with these type of deals and what do you recommend? Being a newbie I have no idea how much it will cost to finish this house in order to base my offer for a wholesale deal.

    • On July 05, 2013 at 10:27am, Stephani said...

      Hi Bob,

      I don’t have much experience with rehabbing, so I have no clue how much it would cost to finish the houses. I would find some cash investors who are buying the area and see what they would be willing to pay for a similar property. You could also get a contractor to give you an estimate just to get a general idea of what it would cost.

      Take care,
      Steph

  27. On July 05, 2013 at 8:26am, luke mampuya said...

    I am a new wholesaler from houston. I find a deal. It is a foreclosed REO. The seller is not an owner. He wants to find a cash buyer who will be subjected to his deadline closing for the july 8 or next week. Then he wants me to send him my contract on his email to look at it. How do you find cash buyer that quick in this kind of deal? Do you think i can make anything out of this?

    • On July 05, 2013 at 10:28am, Stephani said...

      Hi Luke,

      I’m not sure if I understand what you’re trying to do.
      Is someone else wholesaling the property and wants you to find a buyer?

      If so, go check out my YouTube channel- I’ve got a bunch of videos that explain different ways to find buyers for your deals.

      Good luck,
      Steph

  28. On July 08, 2013 at 12:16am, phil said...

    hi steph, you have some of the best videos.they are clear and quick to the point.no nonsense just good info.your new video on finding comps is great and i couldnt agree more with you as to doing research then calling buyers and also get out into the neighborhood.so many people wont get out and they miss out on stuff you just cant see online. i find vacant homes that way that are not anywhere online.
    thanks again phil by chicago