do you want to start wholesaling real
estate in 21 days or less without
spending one dollar in marketing and
without having to have tons of
experience hey everyone my name is alex
martinez i'm the ceo and founder of
realestateskills.com and we help
everyday people to wholesale flip houses
across the nation so this strategy alone
i'm about to cover today it helped us
generate over 12 million dollars in
revenue our first year in the game in
real estate first off what i'll cover
today is what is wholesaling real estate
exactly i'll cover the wholesaling
process at a high level so you
understand and then number three i'll
cover this 12-step process on how you
can start wholesaling real estate in 21
days or less in your area first off
let's cover what is wholesaling real
estate exactly well what wholesaling is
is when you get a property under
contract at one specific price let's say
one hundred thousand dollars and
initially you are the buyer on the deal
so you put the property under contract
at one hundred thousand dollars but then
you find a cash buyer typically a fix
and flipper that wants to buy this deal
at a higher price so let's say they want
to buy it at 110 000
now all you need to do is put that
property under contract at one price and
then sell it sell the contract to your
cash buyer at a higher price so if they
wanted it at 110 000 you make the 10 000
difference as a profit so it's very
simple there's two main ways to close a
wholesale deal is through assigning the
contract so let's say you have a
property under contract
to buy you can assign those those
contract rights which is essentially
just a transfer of contract rights from
one party to another party all right
this is a pretty simplistic approach we
do this for about 99 of our wholesale
deals we always love assigning because
it's so simple the second way to close
these deals are through double closing
double closing essentially what it means
is you close on that property with some
funds typically funds from a
transactional lender someone is willing
to lend funds for 24 hours or to up to
72 hours on this deal so in that example
the 100 000 deal let's say you brought
the funds to to buy it for a hundred
thousand dollars but then you lined up
the second buyer you lined up your cash
buyer to buy it at 110 000 so there's
actually two closes that happen it can
happen within the same escrow company
sometimes two different escrow companies
but what's going to happen is you close
on the deal at 100 000 and then gets
resold to your cash buyer at 110 000 and
there's going to be some fees some
closing costs so you're not gonna make
completely ten thousand dollars when you
double close but you will still make a
nice profit that's why i recommend
assigning the contract versus double
closing because there are more steps
involved and so today in this process to
make it as simple as possible we're
going to cover signing the contract to
your cash buyer so you can wholesale it
so let's cover the wholesaling process
at a high level all right so essentially
what we want to do is number one find a
house that is in a distressed condition
so meaning it's outdated it's stuck in
the 70s the grass is overgrown there's
mold it smells like cat pee basically a
house where a first time home buyer
can't move in and get a first-time home
buyer loan or a conventional mortgage
right it's a house that is distressed so
that it needs to go all cash now what
you're also going to be looking for is a
house that has a seller who's in a
distress situation so maybe they're
facing a foreclosure they're not able to
make their mortgage payments maybe
they're going through a divorce and they
have a lot of memories in the house and
they want to sell the house quickly
maybe there was a death in the family
and they got inherited a property they
don't know what to do with it they just
want to get rid of it they don't want to
deal with it right so when we can find a
property that's in a distressed
condition and the seller's in a
distressed situation i like to call that
a double whammy there's a lot of
motivation for that deal there's a lot
of motivation for that deal to go below
market value
and so those are the types of deals
we're looking for and so i'm going to
show you today exactly how you can find
those deals in your area across the
united states the second thing we need
to do is once you find that deal you
need to get that property under contract
right you need to get under contract
hopefully below market value that allows
you to mark that price up to a cash
buyer so that you can wholesale it and
make a nice profit and your cash buyer
can make a profit from renting property
as well once we get under contract you
sell those rights to your fix and
flipper and then you close the deal and
what we see across the nation doing
hundreds of deals over the last decade
is that the average wholesale fee is
about ten thousand dollars so i want you
to shoot for that so some deals you will
make more than ten thousand dollars some
deals you will make less and it's
totally fine just know it will average
out typically around ten thousand
dollars now let's get into the 12-step
process so you can start wholesaling
real estate in 21 days or less step
number one what you want to do is pick
your
market
all right you want to pick your market
the market you plan on wholesaling in
and you know i got some chicken scratch
i was a c student in english but got an
a in real estate so as long as you can
read that we're good to go so you want
to pick the real estate market you plan
on wholesaling in and so i get asked all
the time alex you know should i start
virtually wholesaling in a state five
states over or should i start
wholesaling locally where i live and
what i recommend nine times out of ten
for someone is to start local start in
your city start in your county where
you're located because it's going to be
a hundred times easier to wholesale a
house there than if you just pick a
random state to start wholesaling in
because you heard someone else's
wholesaling there there are deals in
every single market across the united
states and there's deals right there in
your own backyard that's what i want you
to understand so pick your market this
takes about one minute if you want to
wholesale virtually you absolutely can
what i do recommend is that you have
some sort of affinity to a market maybe
you live there for five years beforehand
maybe uh you know real estate agents and
investors there already maybe you bought
a house in that particular market then
sure you can start virtually wholesaling
but know that if you start local you're
going to be able to attend local real
estate investors association meetings
you're going to be able to meet
face-to-face with cash buyers you're
going to be able to meet face-to-face
with real estate agents and sellers of
property so there's so many benefits to
starting local
and you know more than you think you
know about your market you probably know
up-and-coming neighborhoods you probably
know the bad areas you probably know the
prices to some degree good zip codes bad
zip codes and all that local knowledge
will help you be a better wholesaler and
help you to wholesale houses faster so
number one pick your market is it local
is it virtual i recommend local and then
let's go to step number two
step number two is
find
three
to five
cash
buyers
okay
you wanna find three to five quality
cash buyers in your market that are
actually buying deals so typically these
cash bars are gonna be fix and flippers
we like working with fix and flippers
who will buy your wholesale deals for
all cash and cash buyers that are buying
multiple houses per month this way you
don't deal with the cash buyer who says
hey i buy a house every six months or 12
months they're not going to be fast to
to respond to your wholesale deals
they're not going to be the ones willing
to pay you top dollar for deals we want
the cash buyers that are hungry buying
multiple deals every single month in
your area
so that way you can confidently
wholesale three five ten houses every
single month right so that's not a
roadblock it's not a hindrance for you
at all one of my last videos i created a
training on how to find cash buyers
online for free so i'll put a link here
and in the description you can check
that out and i'll teach you exactly how
to find these cash buyers for your
wholesale deals in your market and now
let's go to step three all right
so step three is
finding
and filtering
for deals okay
now remember what i mentioned what types
of deals are we looking for we're
looking for houses that aren't in a
distressed condition and a seller who's
in a distressed situation
right and so we want to find and filter
for these deals and so what i always
recommend for anyone is to utilize the
mls the mls is the multiple listing
service it's a database of all the
houses on the market in your area and is
created and maintained by real estate
professionals and according to the
national association of realtors about
90 of all real estate transactions that
occur every single year happen on the
mls on market these are on market deals
all right that means 10 percent of the
rest of transactions happen off market
so if you want to have the best success
and wholesale a house as soon as
possible and consistently do it and
predictably do it i recommend the mls
because there's always new houses coming
on the market every single day that are
distressed now majority of houses that
will be on the market they're going to
be retail and move-in ready for
first-time homebuyer but guess what
there's still distressed property
in distress condition with a seller in
distress situation being uploaded the
mls in your area every single day and
the best part is you don't have to spend
any money in marketing you don't have to
send any letters for direct mail you
don't have to put out any banded signs
you don't have to make any cold calls to
be able to find and get these deals on
the mls to get access to the mls most
states have something called assistant
access to where if you're unlicensed you
can work with an investor friendly agent
and get access to the mls if you are
licensed already then you can get access
to the mls in your market but let's say
you don't know an investor-friendly
agent and you want to get started today
what's the next best thing you can do to
find and filter for these deals on the
market well the next best thing instead
of the mls you can use redfin.com
put that down redfin.com zillow or
realtor.com
in your area okay so these will pull
listings these will pull houses for sale
from the mls and put it onto these
websites so it's not exactly the same
thing there's always going to be more
deals more history more data on the mls
and we like to refer the mls as the king
database it's something as a serious
real estate investor as a serious
wholesaler you're definitely going to
want access to sooner or later and the
sooner you do it the better your
business is going to be but once again
if you want to start wholesaling 21 days
or less you can hop on redfin.com zillow
and realtor and look at the houses for
sale in your market today all right and
i'll give you two strategies two really
good strategies we've been using for 10
years to be able to find these deals
consistently number one is gonna be the
day zero strategy
i'll explain that and then
old listings all right
so
one
two
so what's the day zero strategy what are
we doing here we're trying to find
houses that have just been put on the
market date on like the first day within
24 hours that's why it's not the day one
strategy it's the day zero strategy and
with that day zero strategy what you
want to do is find and filter all the
new deals that were listed on the market
so let's say there's 50 new houses that
would put on the market today in your
county what you want to do is filter
through those deals which houses are in
a distressed condition that looks like
oh man this needs to go all cash right
it's stuck in the 60s the 70s it's
completely outdated there's mold there's
water damage right those are the houses
that we're looking for and also if you
use the mls there's going to be more
information about the property
typically there's remarks that are
confidential for anyone who has access
to the mls and sometimes it tells you
the seller's motivation and why they're
selling all right
now in redfin and zillow it will have
some descriptions as well the property
even realtor 2 and what's going on it
might have the the seller's motivation
but a lot of time it does not if you
just use
any of these platforms to find deals on
a daily basis using the day zero
strategy you find 50 new properties
maybe five to ten of those are
distressed and those are the deals that
you're going to want to focus on on a
daily basis all right so you just do
that alone you're going to be able to
wholesale multiple houses and find these
houses and put them under contract every
single month the day zero strategy works
really well because if a distressed
house gets put on the market immediately
today and it's going to go to an
investor it's going to go to a
wholesaler it's going to go to a fix and
flipper it's going to go to someone
who's bringing all cash why not you
all right and if it's going to go to an
investor it's going to pay all cash for
this property
typically it's going to go to the
investor who's going to build the most
rapport with the agent okay so speed's
the name of the game with the day zero
strategy as soon as that property is
listed on the market you want to call
that agent so that you can tell them who
you are what you know what your company
is about and learn about this property
and build rapport so we'll get into that
in the next step but also want to tell
you about the old listing strategy so
with the old listing strategy if you
look at property now on one of these
platforms and you see the property's
been active on the market for 60 days
plus or 90 days plus we know that in
today's market there is something wrong
with that property there might have been
litigation some legal issues something a
reason why that house didn't sell
that house could have been listed at way
too high of a price and now the seller's
willing to come down in price so there's
a lot of reasons so if you call them
those old listings that are definitely
wholesale worthy there's going to be a
problem and so when you talk to the real
estate agent you're going to want to
understand why hasn't this property sold
for 63 days or 94 days you know what's
been going on with it just so i
understand
and sometimes they can bring you a
problem and if you can solve that
problem for that agent for that seller
guess what you can be the knight in
shining armor and close that deal and
get under contract so there's other
strategies we cover but just those two
alone you'll be able to wholesale your
first house in 21 days or less using
those strategies all right now on a
daily basis when we find these types of
deals using these platforms step four is
to make discovery calls
daily
okay make discovery calls daily
to real estate agents all right what you
want to do is once again if you find
50 new listings that came on the market
and maybe five to 10 of them are
distressed
if you use the mls you're going to have
the contact information of the real
estate agent that's selling that house
on the market so on this strategy we do
not target the the homeowner directly
the homeowner who put their house on the
market has hired a real estate agent
called a seller's agent or listing agent
that's willing to sell the house on the
market for the seller so we contact that
listing agent directly so if you use the
mls what's great about it it will have
the phone number the email for that
particular agent so you can call them
directly if you use redfin or zillow or
realtor sometimes it doesn't have all
that information it may have their name
the listing agent's name but then you
just want to google that listening
agent's name
and then find their phone number and
their email the very least just find
their phone number and then give them a
call about this particular deal so we
call the agents daily one we want to get
a pulse on the deal number two we want
to build rapport with the agents we want
to be professional and we want to make
sure that we build credibility and
authority so when you call these agents
you're not just a wholesaler and this is
what i teach all my clients and i
recommend for anyone who wants to
wholesale real estate don't look at
yourself as just a wholesaler you know
if you want to be just a wholesaler
that's totally fine but i encourage you
to be a real estate investor someone who
not only wholesales but fixes and flips
property buys and holds property and
builds wealth through running out their
property to other people if you see
yourself as that then project yourself
as that so when you call an agent you're
not just a wholesaler you're a buyer
you're an investor and that's what
agents want to work with agents want to
work with decision makers so if you make
yourself a decision maker on these deals
they're going to want to work with you
all right this is a big tip i see so
many amateurs call agents say hey i'm a
wholesaler and agents don't like that
word and so then they say hey go kick
rocks and they're crying and they're
wondering why the heck they never get
deals it's because what you say is very
important what you say and how you say
it all right so on this call we're
building rapport and you're checking in
on the deal you're calling on that lead
you know do the photos match up with the
current condition of the property you
can ask the agent is there anything out
of the ordinary about this property that
needs renovation does it need a new roof
does it have any cracked slabs these are
significant repairs that you will need
to add to your repair budget when we get
to that particular point in time and
then also you can ask this agent
questions like you know how's activity
been on the property are there a lot of
offers on this property by any chance
now you can get a pulse on your
competition they may say hey we got
three offers but they're all below this
price at 150. we've had agents tell us
that so you want to ask information
about the deal about the competition
who's in the running you could have
agents say hey you're the first one to
call i like what i'm hearing i
definitely want to work with the cash
investor on this deal how about you come
meet me at the property at 2pm and make
this deal happen right that can happen
too and that's where with day zero the
day zero strategy speed's part of the
name of the game once again call agents
daily talk to them about these deals
we're only calling on distressed deals
you're not calling on
beautiful
brand new renovated property that's not
going to go all cash that's not going to
go to a wholesaler right you're calling
on distressed property be sure to do
this because once again a lot of
amateurs think every single property
they can wholesale and that's absolutely
not the case once we call the agent
we're verifying the condition of the
property we're understanding more about
the property has it been updated or is
it in its current state do the photos
match with the current condition are
those photos old on the mls or on on the
market now when we end this conversation
you don't have to close the agent you
don't have to give this agent an offer
price it's very important you understand
that because a lot of people get really
nervous and think they got to throw out
an offer and they pull something out
willy-nilly that doesn't even make sense
that they're going to backtrack on
eventually so just know you can leave
every conversation every discovery call
you have with an agent you can say
hey vanessa the agent's name is vanessa
hey vanessa i really enjoyed talking
with you thank you for sharing so so
much information about this deal
what i'm gonna do is i'm gonna get back
with my team
we're going to evaluate this property
with all the information we have now and
i'm going to be able to get back to you
within a few hours
and give you a no-nonsense genuine cash
offer that we can stick to does that
sound good i've never had anyone tell me
no
right they're going to say yes that
sounds good so now what you can do is
once you end that conversation and you
understand great i got a hot lead on my
hands i understand everything about this
deal i see the photos they match up with
the current condition of the property i
know my competition now what we can do
is go the next step
all right we can further
analyze the
property and the numbers we're going to
get here are
the arv
the repairs costs
your wholesale fee
and our offer price also known as the
purchase price all right
so some people may be saying well alex
don't i want to analyze every single
deal before i call a real estate agent
you can but it's not recommended because
what's going to happen is you're going
to take an hour two hours three hours
analyzing a property that's hot that's
on the market that's gonna go to a
wholesaler and if you spend that time
you know two hours analyzing it then six
pm and then you don't call that agent
that day and you wait till the next day
to call them guess what myself my
students my clients we've all called
that agent immediately and been able to
get that deal under contract so we call
the agents first to verify is this house
even on the market steel right we call
this agent to build rapport with that
agent because if you just think that a
text message or an email will be
sufficient and building rapport with an
agent getting your offer accepted you'll
be sadly mistaken people work with who
they trust and like so it's so important
that we call the real estate agents
first
and we want to do that once again so
that we can further analyze the property
right the agent might tell you
information about this deal that
directly affects the repair costs that
you'll be analyzing for that you would
have just had to assume about before
actually having a 15-minute phone
conversation with that agent we analyze
the property after we talk to the agent
and they're open to working with us on
the deal and everything sounds good this
property is distressed and it's going to
go to a cash buyer with analyzing the
property the first thing we want to do
is find the arv arv stands for the after
repair value
so the property that we're working on
let's say we're working on one property
at a time that's called the subject
property now for the arv we need to find
comparable properties so let me give you
an example okay if the subject property
we're working on is a
let's say three bed
two bath house all right 1200 square
feet
that's the property that's the hot lead
we called on three bed two bath house
1200 square feet what we want to do now
is find properties that have sold in the
last six months not two years ago last
six months within a half a mile radius
with the same bed bath counts
and the same city in the same zip code
plus or minus 20 percent of the square
footage of this property so about a
thousand square feet to 1400 square feet
we're looking at houses that have sold
and that are renovated in that
particular area because we're trying to
find what is the future value of this
property we're wholesaling
once
once it's renovated by our cash buyer
and once it's resold okay and that's
important to understand it's important
to understand how the fix and flip
business model works so that you can get
the largest wholesale fee possible and
you don't bring silly deals to cash
buyers that they don't want so we find
the arv and if you can compare apples to
apples you're going to be winning right
so if you can find other 3 bed 2 bass
1200 square feet that are renovated
then you'll probably be able to find
that arv this is exactly what we do
every single week with our clients we
help analyze their deals all across the
nation and we use this strategy to find
the arv which is so important so let's
just say the arv was 300 000 for example
because we found three comps that were
at 310 290 and 300. all right now we
know the arv is 300 000.
now for repairs this is something that
no one's great at analyzing for repairs
every single time every single deal it's
always my goal to get within three to
five thousand dollars of the true repair
costs of renovating this property so
let's say our subject property was a
three bed two bath 1200 square feet and
just need all cosmetic renovation so it
didn't need a new roof it didn't have a
cracked slab that needed repair all that
needed to happen was new flooring paint
redo the kitchen redo the bathrooms
and all cosmetic work so paint interior
exterior some landscaping so nothing
major nothing constructional that we're
not adding square footage to the
property a rule of thumb you can use to
start with and you're going to want to
hone this in over time if a property
needs all cosmetic work you can use 30
dollars per square foot all right so
let's say our subject property was a
cosmetic fixer and so you times
30 dollars
times 1200 square feet you're going to
get an estimated repair cost of 36 000.
so you can go ahead and use your repair
costs as 36 000
for this particular deal and you're
probably gonna be plus or minus three to
five thousand dollars away but it's
important that you understand you don't
need to be perfect on your repair
estimate because the only person who
knows exactly what the repair estimate
is going to be on a house is the actual
general contractor that your cash buyer
is using and i don't i've been working
hard at it for a long time i can't read
minds i can't predict the future so
don't worry about it as long as we can
get close we're able to move forward as
you can see speed is is part of the name
of the game here we're not trying to be
perfect and take days to analyze a
property because good deals go quickly
so it's important to get the arv it's
important to get the repairs numbers
down and i'll give you a tip how we hone
this repairs number over time is once we
start to get deals under contract we
send them to our cash buyers we can get
feedback from our cash buyers on how our
numbers look
and we can ask our cash buyers how do
you estimate repairs and now you're
going to be able to find the exact
dollar per square foot number for each
of your cash buyers that you can
multiply times the square footage of the
property to get the exact repairs every
single time you mark it so you can
analyze for repairs just like that very
very quickly all right so let's keep
moving
we get repairs
it's cosmetic fixer
36 000 arv is 300k now for the wholesale
fee
i recommend always aiming for 10 000
or more
that way if push comes to shove and you
need to negotiate a little bit you can
always shave off a little money off of
your wholesale fee but at least we're
starting with a reasonable amount that
you'll be happy with on each and every
deal and ten thousand dollars is a great
starting point all right so ten thousand
and now from there we're able to know
exactly where we need to offer so what
we use now after doing this for about a
decade we have our own spreadsheets and
calculators so we get the exact dollar
per amount and we get the largest fee
wholesale fee possible by knowing every
single number on the deals but
essentially what you're doing is
projecting you know what's the profit of
our cash buyer going to be
and then making sure it's a profitable
deal for them it's met their criteria of
what they want so once again step two we
find those three five cash buyers we
talk to them we find their buying
criteria we find exactly what they want
so that when we find deals on the market
or find the exact deals that they want
and the zip codes that they want and it
meets the profit that they want once
again we use a lot of different
calculators and spreadsheets to
calculate this but i'll give you a
simple formula today that is a little
elementary but will help you get started
in a wholesale house in 21 days or less
all right the formula is
arv
times 70 percent and this seventy
percent is adjustable and i'll show you
that in a second
minus repairs
minus your wholesale fee
all right
so let's do that matt that arv is 300k
times 70. let me just double check my
work
all right that's 210 000.
all right minus repairs
36 000.
minus the wholesale fee of 10k
and let's
calculate all that
all right 164
is your maximum allowable offer
on where you're able to offer on this
particular deal where you can make a ten
thousand dollar wholesale fee now
here's the caveat to this
seventy percent of the arv
is is very very low and sunfix fixing
flippers will tell you hey i'm only
going to buy it 70 of the arv minus
repairs minus your wholesale fee but
know that you can go up
to 80 so use that formula 80 today there
are definitely fixing flippers buying at
80 of the arv minus repairs and minus
the wholesale fee so let me just show
you real quick just how important that
is because at 70 we can offer 164 but if
i do 70
times 300 once again and we have 210k
minus oh
we want to go 80 percent right 80 that's
240 k
minus 36k
minus 10k
you're a little messy here but
essentially what's going to happen is we
can offer now
194k on that property that's a big swing
okay what i want you to notice is
depending on the formula our cash buyers
are using we can have a 30 000 swing
where we have to put this property under
contract and sell it to our our our cash
buyer for okay so it's really important
um when we talk with our cash buyers
they may tell you 70
uh of the arv they're willing to buy
minus repairs and the wholesale fee but
keep in mind you get a deal at 75
percent 80 82 of the arv minus repairs
and the wholesale fee guess what still
send it to them because when push comes
to shove a lot of these cash buyers are
still going to buy these houses at 80 of
the arv minus repairs minus the
wholesale fee all right so that's how we
reverse engineer the deal so let's just
say on this particular deal
we do all the math
i'll put these numbers here we analyze
this deal so we got the arv right we got
the arv at 300 000.
we have repairs at 36 000.
we know our wholesale fee is going to be
10k
right
and with all of this in mind we know we
have to offer
at 194
okay
boom
so now we know our offer price where we
need to offer on this particular deal
194 80
of the arv
right minus repairs minus our wholesale
fee so we're doing really good here okay
so once again that's 80
so that's going to be 240k
so now we know exactly where we need to
offer 194k we can go back to the real
estate agent this is step six so call
back
the real estate agent right so the same
agent we were talking to the whole
entire time call them back i have to
call this
the close call right so the first one is
discovery call we're building rapport
we're understanding about the property
we're understanding about the
competition we'll leave that call saying
hey we're gonna go analyze the deal to
go review with our team we'll get back
to you we'll give you a no-nonsense
offer we can stick to
and then we further analyze that
property right so we know exactly
where we know to offer okay and you know
i'm taking some time explaining this for
you but you'll be able to do this very
quickly within 30 minutes on the deal to
get these deals under contract and
submit offers constantly on these deals
all right so now we know exactly we need
to offer we can call this real estate
agent and discuss the offer price and
discuss putting it on under contract at
that number so if you did a great job of
finding a distressed house
that needs all cash because it's moldy
there's water damage it's outdated and
the seller's in a distressed situation
as well there's motivation for this
property to sell cash there's motivation
for this property to sell below market
value all right so keep that in mind and
so when you talk to the agent let them
know
check back in with them when you give
them a call because they might not
remember you could say hey this is alex
again with xyz homes we we talked a
couple hours ago and i just want to let
you know i met my team we're very
excited about working with you on this
particular deal and we can actually come
in on this this house today we can have
you have you represent us and we can
offer 194 000 on this deal and what you
want to do you might have to talk them
into your offer a little bit one thing i
would like to say is well an offer is
better than no offer right and what i
want you to understand is i've had so
many agents tell me throughout the years
that hey that's never going to work and
guess what i still submit an offer and
it works all right
so it's our goal when we're talking and
working with real estate agents and
we're using the strategy it's always
your goal to work with the listing agent
who's selling the property and what's
beautiful about this process we're not
dealing with anything off market i'm not
telling you to write up your own
contract in fact if you write up your
own contract sent to an agent on a house
on the market you're going to look silly
you're going to look like an amateur
so when we work with real estate agents
they write up the contract for us so
it's our goal to call this agent back
and have that listing agent write up the
contract for you
all right and represent you as your
buyer's agent and what's really
important that you understand is if that
listing agent represents you as your
buyer's agent
they're going to make twice as much
commission on this deal
that's a big incentive for a real estate
agent to go with your offer versus
another offer
all right so once again it's the goal
that the listing agent will represent
your offer so they make twice as much
commission so technically they'll become
your buyer's agent now that listing
agent is not open to doing that the next
best thing you can do is ask for a
referral from the listing agent someone
they know that can represent you maybe
within their brokerage or a friend of
theirs and why is that the next best
thing when a listing agent refers
another agent to a buyer or seller
property that agent is going to
represent that buyer for example and
they're going to get a commission
and that listing agent can get a
referral commission typically about 25
percent of their commission so they can
still make a grand two grand three grand
or even more just for making that
referral so the listing agent is still
somewhat incentivized to go with your
offer versus another offer right so
listing agent then a referral from the
listing agent if you can't get a
referral from the listing agent what's
the next best thing for you to do to get
an offer in on this property it's to
find an investor friendly real estate
agent that can represent you so you can
get your offer in on this house now one
thing to keep in mind that listing agent
on every single house representing you
that's legal in the majority of states
some states they don't want that listing
agent to represent you as a buyer's
agent as well and so what you can do and
typically in those states that broker
there's always a listing broker can then
become an intermediary broker or
transactional broker so that the broker
can at least represent both sides so you
can still make it incentivizing for that
broker no matter what state you're in
ask the agent they're open to
representing you because sometimes they
say yes and then they'll say you know
i'll just have a friend represent you
i'll just have a referral represent you
and they still make it work that
hierarchy once again listing agent
represents you if not a referral if not
work with an investor friendly real
estate agent that can write up your your
offers for you represent you as your
buyer's agent you can meet these agents
in facebook groups just look in your
area real estate agents type in your
area in facebook you can go to real
estate investor association meetings
just google real estate investor
association meeting and and your city
name and then you can attend those and
that's where real estate investors hang
out and people are interested in working
with real estate investors or heck you
can just go on the mls red penzilla
realtor and start cold calling if you
want but it's a lot easier to just go
these facebook groups and say hey i'm
looking to work with an investor from
the agent and put in multiple offers
every single week is anyone willing to
work with me so now you can start
getting warm leads and getting people
contacting you so we call back the agent
we agree upon that price we agree upon
terms so typically when we're
wholesaling a house or we're competing
with other investor offers
a couple things important typically this
seller is going to want a quicker
closing time frame so for some basic
foundational terms that you want to
offer typically like a 14-day close that
means from the day you put under
contract 14 days later it's going to
close and then this is really important
every single contract you're starting
out
put an inspection contingency in the
deal most of these contracts that we use
actually in fact every contract i've
seen when working with real estate
agents has an inspection contingency
clause in there make sure that's at
least seven days when we're dealing on
the market the inspection contingency
says you're able to back out this deal
if it doesn't pass your personal
inspection that's very important that is
your back out clause all right so i
don't recommend if you're just starting
out if you're a beginner
and you want to start wholesaling never
submit an offer without inspection
contingency clause
otherwise you're technically saying hey
i'm going to buy this property no matter
what and it's really important to have
that clause there to where a fire
happens day two guess what you can back
out the contract you're good or let's
say you're buying a house
and there's tenants in there or you're
looking to wholesale this house you want
that special contingency to be as long
as possible because let's say
you have only a three-day inspection
contingency and the tenants were
supposed to move out day five
but on day four
they tear the house apart they punch
holes in the wall technically
you're supposed to buy that house
because it's outside your inspection
contingency given that you didn't have
any other inspection contingencies all
right so that's the importance of the
inspection contingency and always work
within that contingency and the goal is
to wholesale the house before that is
over if you cannot hold wholesale the
house before your inspection contingency
is over
pretty much means you you found a bad
deal or you didn't find the right cash
buyers just so you know
but if you can't wholesale it within
that special contingency time frame the
worst thing you do is cancel the
contract it didn't pass your personal
inspection you're able to be you know go
away scot-free and go on to the next
deal all right that's never the goal we
want to close every single deal we put
under contract but i just can't stress
how important that is the inspect
contingency will keep you protected all
right 14-day close seven day inspection
contingency there we go typically an emd
is due or earnest money deposit is due
within 72 hours of this property being
put under contract it's typically
anywhere from five hundred dollars to
ten thousand dollars now when working
with the house on the market if you do
these steps right you don't have to put
one dollar into the deal if you find
three to five cash buyers who are buying
deals every single month you can put
this property under contract and not
have to put in the emd all right really
importantly understand that you can
wholesale this house in 72 hours once
you put under contract and your cash
buyer puts in the earnest money deposit
so once we talk with the agent we get to
that price
let's just say in this example the
listing agent is writing up the contract
for us what you want to do now is be
professional and send the offer terms
via email to the agent
all right
send the offer terms
via email
to the agents the agent can put those
offer terms in the contract
and the agent writes of that contract
and sends it back to you via email all
right so your offer terms can be
uh what i like to make as simple and
clear as possible we're not writing 20
paragraphs in email just say hi vanessa
i'm looking forward to working with you
here are the offer terms for the
contract
whenever you can fill this out please go
ahead send back to me i'll be sure to
get it signed and send it right back to
you so in those offer terms you can put
the address of the property the
purchaser name so if you have an llc
put your name as the purchaser name your
llc name if you don't have an llc yet
just put your personal name so it's
always recommended to have an llc to
have a business if you're operating like
like a business but i've had many
students many clients who didn't have
that llc set up yet and wholesale houses
under their personal name and then use
the proceeds from their wholesale
profits to start their business so you
can do that too so either your company
name or your personal name then put the
offer amount right so let's say we
agreed upon at 194 go ahead do that put
the emd amount so typically one to three
percent can be normal and you can ask
this agent you know what type of emd
would you like to see right they might
say 1000 3000 5000 something like that
go ahead and put that down knowing that
if you do this right you're not going to
put that emd down and even if you can't
have a wholesaler put that emd down for
you in 72 hours you can still cancel a
contract if you need to
um not recommended you know some of my
first deals i had to put an emd down i
borrowed that money a decade ago i was
borrowing money to put five ten thousand
dollars down on a property to be able to
wholesale it make ten twenty twenty 25
000 per property so you know i recommend
doing what you can if you still need to
put that emd down now contingencies
we make our offers as clean as possible
we only put in special contingency so
remember at least seven days then the
closing time frame 14 days you can put
or sooner if your cash bar is willing to
close sooner and then one thing i like
to mention every single email with the
offer terms is seller to deliver free
and clear title this means that you're
buying the property with no liens
attached to it the seller didn't have a
credit card bill that they didn't pay
and then now on the property it says hey
this person owns thirty thousand dollars
of credit card debt um we're not looking
to take over someone's existing mortgage
when our cash buyer buys the property
they're gonna own that property free and
clear so seller to deliver free and
cleared title so we send that
information to them just put in a bolded
list make it very very clear send to the
agent and then it's their job to go
ahead and send you the contract back now
that we email the agent the offer terms
let me just clean this up real quick we
can go into
step eight okay so we want to get the
contract back
check it that it's
right sign it
and send back to the agent okay
so this is very important
just sending the offer terms to someone
to an agent to anyone saying hey i'll
buy your house for 170 or whatever it is
don't count that as an offer sent
all right those are just offer terms
what we love counting as an offer sent
and what we've been doing for a decade
this is the most important key
performance indicator
is how many contracts are you getting
back from agents
signing them and then sending them back
to the agent because at that point in
time the only thing that needs to happen
for you to get this deal under contract
is for the seller to sign that contract
so this is the most important kpi this
is worth its weight in gold this is
always what we're shooting for every
single day and we talk about we want to
send a certain amount of offers every
single day right if you do one a day
what we see is it takes about 15 offers
sent to get one accepted that you can
wholesale you just did one a day for a
month one offer a day right here
signed off for a day
that's 30 offers in a month that'll get
you about two deals a month and you'll
make about 20 000 it's what we see
if you do
two offers a day for example that'll be
about 60 offers in a month
and you'll get about 40 000 per month so
you can see if you start doing three to
four to five offers a day a lot of our
clients and students are doing three to
five offers a day and are crushing it
and that's where i want you to get and i
recommend everyone gets to go because at
this point once you're sending high
quality offers and a high quantity
now it's just a numbers game and you're
going to have a pipeline full of deals
and be consistently predictably
wholesaling houses so we get that
contract back from the agent we check it
we make sure our offer terms are in that
and they're correct so make sure the
purchase price is right make sure the
emd amount is right make sure your
inspection contingency is in there make
sure the closing time frame is in there
you're going to sign it so a lot of
agents use something called docusign
docusign.com so you can sign it
digitally some agents will make you
print out the contract and
sign it with wet signatures they say
what signatures they want you print it
out scan it send it back
you might have to do that it's a little
annoying but hey it's worth it i always
look at every contract as worth ten
thousand dollars potentially
and then send it back via email to that
agent all right send it back so now it's
in their inbox and don't delay this
process
as soon as that agent sends you the
contract via email
check it sign it send it back right you
want to be the person who's on top of
the ball you want to show this agent
that you're professional you don't want
this agent thinking hey this person's
slow or isn't doing what they say
they're going to do you want to be on
top of the ball every single time so
that this agent thinks
man
if alex or peter or stevie's on top of
it right now i can only imagine when we
need to close the deal they'll be just
as on top of it right so do everything
you say you're going to do and the
little things matter right so get back
to them quickly sign it send it back all
right now that we've sent the contract
to the agent what you want to do
is follow up
to get
the executed
contract all right so what does executed
contract mean
this means that the seller has now
signed the contract too
because you signed the contract you send
it to the agent all that's left is for
that seller to sign it and now it
becomes binding now you have the
property under contract so this is
something to celebrate because now we
can wholesale this house so this house
was on the market but once it's under
contract guess what you own the rights
to the contract you own the rights to
buying that house
okay
so this is very important that we follow
up to get the executed contract so an
important question asked this agent once
you send them back the contract is when
is the seller plan on reviewing this or
when do you plan on meeting with the
seller right if they tell you that hey
today at 5 pm i want to get the signing
get back to you well guess what put that
on your calendar and 505 pm comes by
check your email if that signed contract
isn't in there that executed contract
give that agent a call and say hey hey
vanessa i'm just checking in just wanted
to see that contract was able to be sent
i'm looking through my spam folder i
don't see it yet are you able to send
that over by any chance
okay great you're gonna be able to get
in 10 15 minutes beautiful all right i'm
looking forward to closing this deal
with you all right so we want to follow
up no matter what they tell you thursday
at 2 p.m hey i'm going to be reviewing
this with the seller guess what call
that agent then at 10 am on thursday
check in and say hey how are we looking
are we going to get the steel under
contract anything we need to adjust to
make it happen right i've had agents let
me know that hey we just come up a
little bit in price i think we'll be
able to make it work 1 000 2000 i come
up in price where i need to and able to
get that deal under contract so even
though you've sent a contract you've
signed it doesn't mean it's a done deal
it's not under contract until the seller
signs it so don't just start celebrating
once you send that contract back to the
agent
right celebrate once we close the deal
and you make ten thousand dollars now
it's game on and now we wanna do is
and call
our top
cash buyers right so these are the
people
that will buy
this deal that will pay you for the
contract rights on this property cash
buyers remember that's why it's step two
it's really important most people skip
this step
and then they try and find cash buyers
down here and guess what you have seven
days to wholesale the steal you're
running around like a chicken with your
head cut off you don't know what to do
you're stressing people out and that's
no way to run a business no one wants to
work with a stress ball right trust me
i've worked with them and
what you want to do is find these cash
buyers first so that when we put this
house under contract we know that it
fits their exact criteria there's a very
high likelihood that they want this deal
so what we do is once we have it under
contract
email your cash buyer so you want to
email them the address of the property
the big three numbers so this is
important you want to email them the arv
the repairs number and then also
don't tell them your wholesale fee at
this point in time you want to tell them
their purchase price
with your wholesale fee built in
so if our offer price is 194 and your
wholesale fee is 10 000
tell them that the purchase price is 204
okay so once again
you'll let them know arv 300
repairs
equal
36
and
purchase
equals
204 okay
now i'll be honest we ran this at 80
percent of the mao formula a little
tighter deal than most there are going
to be cash buyers that will do this but
what you what you can do is you send
this to the cash buyer there's gonna be
some people say yes i'll take it there's
gonna be people that say maybe maybe
i'll take it i need some more
information there's gonna be people that
say no
no matter what if someone says maybe or
no get feedback what don't you like
about the deal they could say hey it's
too high of a price what you can always
do is adjust your purchase price you can
amend it you can ask for a reduction in
the purchase price if you provide enough
great evidence on why you can do that
you could reduce your wholesale fee as
well if it's your first deal guess what
happens most people over inflate the arv
underestimate repairs and then what
happens is you can't negotiate the deal
down because maybe you've just worked so
hard this agent they're like no we're
not going to negotiate the price down so
you gotta negotiate your wholesale fee
down a little bit so maybe instead of
10k make 5k it stinks a little bit but
hey you got to do what you got to do at
the end of the day you're risking no
money to make money in this situation
and you're still getting a heck of a
learning experience and the next deal
you'll be able to do better so what i
recommend this email big three address
of the property send any comparable
properties that justify your arv as well
to help this cash buyer and then what
you can do is put any important dates in
the contract when is the emd due
once inspect contingency removed when is
the closing date let them know that so
that they don't they're not wondering
and they have to ask you that right this
this is what they want to see because
they're a professional that buys
properties all the freaking time so if
you send them all the information that
they need they're going to be good to go
now send them photos of the property as
well you can create like a dropbox link
or google drive link so they can see all
the photos and then also you can let
them know viewing instructions how can
they see the property this is something
where most real estate agents will allow
you to
meet up with them at the property or
give you access to go view it let them
know that hey you know we can go out
check out the property if you're
interested in it and i just need to
coordinate those times with the agent or
if there's a lock box code and they
allow you to go view the property or the
cash buyer you can let them know that
code okay
so we send all this information
to our cash buyers we follow up with the
phone call and we say hey you know i
just sent you a deal it fits your exact
criteria it matches your numbers that
you're looking for and i just want to
see if you have any questions about it
or if you want to talk through it right
now
so if they have questions about it you
can talk through the deal with them
right now you can tell them all about it
and you're selling them on the deal
we're not really over flying numbers or
doing anything like that but you're
making them feel comfortable about
buying this deal it's what they do so
they may have questions about the deal
it's current condition and guess what
you've already talked with the real
estate agent about the current condition
you've been looking at this deal you've
analyzed it you know everything about it
that they want to know so what's going
to happen is one of your cash buyers is
most likely going to want this deal or a
couple of them but what you're going to
want to do is agree upon a purchase
price all right
upon price
and assign the deal
all right really assign the contract so
they can buy the deal okay
so let's say one of the buyers agrees to
204 yes we'll buy it the next step is to
assign the contract remember what i said
about this assign the contract is when
we transfer the contract rights from one
party to another party and you get paid
an assignment fee also called a
wholesale fee consulting fee for that
assignment process in this deal you'd
make ten thousand dollars and what i
encourage you to do any state you're in
that you're wholesaling in with real
estate agents when you get that contract
back
read through that contract i don't care
if you need to go to starbucks get four
shots of espresso and sit down and read
through that contract it's pretty
straightforward but what i want you to
look for is is there any language in the
contract around assigning the contract
so it's important understand that every
contract by nature is assignable i mean
you can just bring your own assignment
contract have your cash buyer sign it
and then you can assign the contract
rights every contract is assignable
unless in the contract it's stated that
it is not assignable but it's important
understand that in every
in every state every city even where a
contract says it's not assignable
you can still sign that contract you
just need all the parties to agree okay
for example
we wholesale and flip houses and buy and
hold property in california
we use the california association of
realtors contract we put a property
under contract with that california
association realtors contract in that
contract we've read through it says you
cannot assign this deal unless you use
the assignment of agreement addendum and
the seller and you and your other buyer
the cash buyer signs this assignment of
agreement addendum then you can't assign
it okay so there's instructions on how
to assign it within that particular
contract so once again
read through that contract so you can
understand
does the contract say i have to do
something
to assign it specifically in this
contract or does it not say anything
about assigning the contract so if
you're in a state where it doesn't say
anything about assigning the contract
then what you can do is in the link
below i'll include our assignment
contract for you that you can use to
assign it and so this is for any states
where there isn't any language about
assigning the contract within that
contract right i know i'm getting a
little wordy but what's important
understand is does the contract you're
using
have any language about assigning it
and saying hey you need to do xyz to do
it and follow those instructions to
assign it
if the contract doesn't say anything
about assigning it
use our assignment agreement and get it
checked by from an attorney as well
local in your market so i recommend for
anything you use online always check
with a local real estate attorney we're
going to be able to assign the contract
and once we do
that we can close the deal
and get paid
right so this deal will close
and when it closes you can do two things
you can negotiate a deposit from your
cash buyer when they take over the
contract rights when you assign the
contract the transaction won't be closed
yet let's say there's a seven day
inspection contingency and
you've done everything i told you to do
so you put the property under contract
right you found the deal
called the agent did the close call
analyzed everything you put under
contract
and the day you put under contract you
email and call your your top cash buyers
someone says they want it the next day
they look at the property with their
team cool they want it you would sign
that contract and guess what day three
they take over the property they pay the
earnest money deposit they have the
contract rights now and so you can
negotiate a deposit you could say hey
half of this wholesale fee once i sign
it is due so you can negotiate five
thousand dollars and you can say when
you close a deal
you can pay me an additional five
thousand dollars to make the ten ten
thousand dollar wholesale fee okay
um we've also done it where we just
trust our cash buyers so much we just
say hey it's an extra seven days just
pay us the full ten grand when we close
all right it's totally fine i'll sweat
off her back so just know you can do it
either way but it requires a lot of
trust
and it requires you to build
relationships with your cash buyers so i
can't stress enough
how important it is to build
relationships with cash buyers how
important it is to build relationships
with real estate agents
because that is like the glue that
sticks everything together it's the glue
that makes everything easier okay so
once we assign it now you're closing the
deal
and you're getting paid ten thousand
dollars all right
so this is the same exact process this
12-step process is how you can start
wholesaling in 21 days or less this is
what i've been able to help and teach a
lot of people on so that they can
wholesale houses every single month
consistently and so far the students
i've taught someone has been about 10-14
days where they've been able to do this
from not knowing anything about
investing in their real estate all right
so
we covered those 12 steps and you're
probably going to want to re-watch this
video again
and what most amateur wholesalers do is
they'll watch a youtube video it will go
in one ear out the other
but what i've done is i created a
training that you can check out that
directly goes along with everything i
mentioned in here so you can check it
out and stack rocks in your favor stack
the scales in your favor so all this
doesn't go in one ear and out the other
you know i'm going to keep talking about
on market deals i'm going to talk about
why there's a blue ocean of deals on the
market and so all you need to do to
check out this training it's for free is
go to realestateskills.com
training and i'll put that link in the
description as well so you can check
that out totally free it's about 39
minutes and we'll go in depth on a lot
of this stuff all right now remember you
can also download the assignment
contract i put it in the description
and just to recap this
i want you to understand if you want to
wholesale your first house don't expect
to send one offer and get it under
contract
don't don't expect you know that you're
going to be able to send one offer and
wholesale that house okay
what i want you to understand is that
typically takes about 15 offers sent
right and offers what we consider offer
sent is when we get the contract back
from the agent we send it back to them
so only the seller needs to sign it now
it takes about 15 of those to get one
deal i'm telling you this now so you
have the right expectations because most
people are unhappy when their
expectations do not meet reality
all right so when people have the wrong
expectations and they think they'll
submit two offers two contracts get a
deal it ain't the case but if you say
man i'm gonna send i'm gonna listen to
alex i'm gonna send one contract a day
and that is my goal to get that contract
back to sign it get it to the seller
so if we can keep on moving forward one
a day you'll send 30 offers by the end
of the month and guess what something
great is going to come out of that you
are most likely going to get a deal and
if not you'll be able to refine and
learn so much more about this process so
probably in the next two weeks after
that you'll be able to get a deal
and you don't need to pull a rabbit out
of a hat all right you don't need to
send 10 000 mailers for this you don't
need to go out at 2am in the freezing
cold weather and put out bandit signs to
do this you don't need to make one cold
call all right what's important about
this is every single real estate agent
here wants to pick up random phone
numbers right a real estate agent only
gets paid and closes the deal when they
close the deal so they're as
incentivized as you to actually close
this real estate transaction so this
isn't a cold call they're expecting
phone numbers uh to call their their
cell phone they're warm they're hot
phone calls all right so this is how you
start wholesaling real estate 21 days or
less without having tons of experience
without having a real estate license
without having to do any type of cold
calling
direct mail marketing you don't got to
drive for dollars
you don't have to do any of that stuff
you can just hop online and do this all
here and you can do it locally or
virtually guys
all right so that's it for today's video
please subscribe hit that notification
bell and we'll let you know in the next
contents coming out i hope you guys
enjoy this and once again this was alex
martinez with realestateskills.com
and our motto is to leave no one behind
in wealth creation so i hope this
excites you
let us know in the comments below if
you're able to wholesale any houses
using the strategy if you have any
questions and i look forward to chat
with you talk to you soon
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