Wholesaling Houses and Getting Busy!

Well June has been an interesting month to say the least. I had a great trip with my family to Florida for two weeks and had a really great chance to relax and recharge. Also in the beginning of June I went to Massachusetts for a week so pretty much I have not been able to actively “look” at properties. Either way it was nice because I was able to close on a deal while I was on vacation for 7K! Since it was wired to me I don’t have the check to show you. Sorry!

I find sometimes that my volume slows down when I am not getting “busy” in the business. You know sometimes we all have the tendency to hope that deals are going to fall into our lap out of the sky. Sometimes that is the case and sometimes not.

I have had the call where the seller calls in and says “I know my property could probably sell for 140K but I know it needs some work so I am going to sell it for 70K. Man, those are the best! There are few things more exciting that that; an easy 10K minimum!

However sometimes and most of the time you have to work for it! I told you last month that I had a crazy amount of calls come in yesterday from the post cards and the calls are still coming in. Now they are not streaming in like a hundred a day but there is still some volume there and its almost time to send out another batch! One of those calls by the way I got a house under contract yesterday!The best part is I think I already have it sold! I will keep you up to date on that one.

The point is that if you want to make money and you want to make deals, you have to get busy! What I struggle with is calling back sellers that leave a message and are asking pretty much top dollar for their property. The key though is that if you want to know the quickest way to get deals you need to get out and start talking to sellers. You may even need to get off your butt and actually go speak to some sellers in person.

This is a mistake that  I have found out that  I have been making recently. I have been prescreening my sellers way too much. The fact is that if the seller has the capacity to go down meaning they enough equity and you do not have any other gimme deals on the table, you should go out there and talk to them.

You will find that most sellers put up a front over the phone that makes it seem like they are terribly unflexible. I mean who are you, right? You are just a voice over the phone. However, when you get out there in person it comes to a whole different level. You are an ACTUAL person that can REALLY solve their problem. You will find this definitely among sophisticated sellers. They do not want to get taken advantage of so they put up the tough person front.

In fact, you should get into a habit of making offers over the phone until you are decent at talking to a motivated seller in person. Once you can get the feel for talking to motivated seller in person it will greatly assist you in talking to them over the phone.

Come monday I have several other calls I need to follow up on and will be going out to make offers in person. I have one deal in particular that I am working on and I am very tempted to offer them a price over the phone but I think it will go a lot better if I can get out their in person. That way I can sit down with them and go over the comparable in the area and the repairs and give them an offer that they can digest and find reasonable.

Here is a quick overview of how my conversation with that seller has gone so far. When I first called the seller seemed very cold and unmotivated. In fact, they even told me that they had several people coming out to make offers on the property. I will tell you that they tell you that a lot so that you will feel inclined to make a higher offer. Honestly, when I hear that from a seller I immediately write that property off as a non deal. In this case, that was just a front as well. There has be nobody out to that property but me!

They even told me that the place needs 50K in work and that the market has dropped about 18% from what it was two years ago. They thought the property around that time was worth about 250K. So what have I learned by going out to the property? 250K with an 18% price drop is 205K -50K in work is 155K. I know I need to get this property for about 115K in order to make any money on this deal.

They understand that 155K is my break even point and they understand that I need to have rooom to make a profit on the deal or else it does not make sense.  So I took a deal from somebody telling me over the phone that they wanted full retail to finding out what they REALLY would take. By going out to the house I have accomplised a lot more than just making a blind offer over the phone.  I am going to call them on Monday and set up an appointment to further justify my offer.

So don’t be afraid to get out there and talk to a motivated seller or two. Every time you do it you will get better and better. One of the most important skills you can acquire is learning how to handle people.

Until Next Time!

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  • vince

    Hi Alex. I’m a newbie to real estate investor. I just signed up with Cris Chico’s virtual wholesaling. I’m in the process of setting things up. I need to know from your experience do you think sending out 15oo post cards, 500 to buyers and 1000 to sellers is a good starting point ?

  • looking for a coach{wolesaling}

  • admin

    hey bob if you are looking for a coach you can email me at alexjoungblood@gmail.com and we can work out some details. If you are serious about it drop me an email and I am sure we can work something out…