Offline7 Steps To $7 K In 7 Days
By: Charles P.
Submitted: 08:46AM on Wednesday 27 August 2008
Real estate wholesaling is a great way to make cash quickly and easily. In fact, virtual wholesaling, allows you to use the power of the internet to generate quick cash in as little as seven days.
Following, we will give you a step by step breakdown, on how you can make $7,000 in 7 days.
Step 1: Find a deal online and put under contract or option. You can find deals in many locations, including Ebay. You can also do a search for “investment properties” or “rehab properties.” Those are great search terms. Some other specific websites that you can visit are www.hud.org, www.southernreo.com, www.ocwen.com, www.lendersreo.com, www.countrywide.com and www.propertydisposal.gov. Ideally, you should be able to find pictures, price, contact and other pertinent information on the website. Remember, you are doing this virtually, so you should not have to leave your home.
The seller should have their contact information listed with the property. Give them a quick call, send them an e-mail or both, to do what you can to lock the property down. One of the virtues of wholesaling properties virtually, is that the deals DO NOT have to be in your hometown. If they are, that is fine, but you are not confined to any geographic location. You can literally search across the states, until you find the deal for you.
Step 2: Assess the deal. Basically, you want to make sure that the numbers make sense and that this is really a good deal. To do this, you want to compare recent sales in the area, with the deal that you are looking at. Be sure to take into account any repairs (if any) that need to be completed. You also want to compare deals that are the same construction and configuration. For example, if your deal is a three bedroom brick house with 2 baths, it would be a good idea to compare those types of sales. There are two online resources that you can use to make these comparisions and assess your deal. They are www.virtualinvestorcomps.com and www.zillow.com.
Step 3: Create your flyer or other marketing materials. There are key bits of information that you want to include. They are: a picture of the house, your sales price, the cost of repairs, and the ARV (After Repair Value). You can probably use the same picture that you found when you located the deal on-line. It is also a good idea to put information about any other extras that the house may have. For instance, you can list hardwood floors, ceiling fans, appliances or anything else that makes the deal stand out.
Be creative and include the type of information that you would want to see if you were looking to buy the property. Be sure to include your contact information, so that prospective buyers know how to get in touch with you.
Step 4: Post the property. This will allow other investors to know about the deal that you have. Two good websites for this are www.craigslist.org and www.backpage.com. If you already have an e-mail list of buyers, you should send the deal out to your list right away. You can also do another on-line search to see where you can post your deal.
Step 5: Now is the time for you to communicate with your buyers. Respond to any e-mails questions or phone calls that you received. When you find a buyer who is willing to pay your price, put the property under contract. Ideally, you should e-mail them the contract and have them fax you the signed copy. You can always have them mail the original.
Step 6: Cash is king. This is something that you must never, ever, forget. Whenever possible, you want a buyer who can pay cash. You want to tell your seller that you can close with cash. This will help you get more offers accepted quickly, and at a lower price. Of course, if you say that, you have to be able to close with cash. So you always want to have cash buyers. This is not as hard as it may initially sound, and it makes everything flow much more smoothly. So, step 6 is to coordinate a cash closing.
Step 7: Close! Most likely, your closing can be done virtually as well. Check on-line for closing attorneys and/or title agents that will do this for you. If you cannot locate one, choose one who will e-mail documents to you, your seller and your buyer. Once you all send in the originals, you will get paid!
And that’s it. This is your step by step guideline on how you can make $7K in 7 days using the power of turn key virtual wholesaling.
Good luck and God bless!
Kim and Charles
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
This infrmation is great, thank you for posting. I have a question, when buying from those sellers which are banks, how do you submit your offer? I understand that banks don't allow assignment of contracts. Also a little information reg. informing the seller that we do all cash offers.
Thanks a lot,
Ani
Glad you like the article. What I would do if I were to do a REO is contact Eric at www.coastal-funding.com he can tell you the paperwork and contract to use to buy REO's and short sales from the banks. He specializes in Short sales and REO's.
Eric can fund all your deals for you if you want to do back to back instead of assignments (since banks frown on assignments).
Don't do a assignment on REO's and Short Sales...do a back to back closing. That way you are going in as a buyer (using funding) and will start marketing the house as soon as you have the Option of Contract signed with the bank. You will use all the contingencies (escape clauses) like your inspection clause for one.
Eric can tell you some good escape clauses to use for REO's and short sales.
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Thank you very much, I'll contact Eric tomorrow. I need to get this business going, so far I have not been successful. We have submited like 8 offers for REO's and Short Sales in the last month and nothing positive yet. I'm gona look into the virtual wholesaling, how successful you've been?
Ani
I have never done a virtual wholesale yet. I would like to be able to do many of these. I like the idea of not having to leave home.
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
So you are saying that you should not do an assignment on a REO. Why? I actually got a call from another investor who is negotiating a REO property that he wants me to assign to my end-buyer. Is this something that I can do?
Is coastal funding a HML?
Hi Chasb
No I am not saying not to do an assignment. If the opportunity has been given to by a bank go for it. I am saying that most banks refuse assignments. That is great if you have found one who will accept an assingment.
Maybe your investor is actually outright buying the REO from the bank and he wants to turn around and flip it...so he has called you to assign it to your end buyer. Yes...you can do this also and I hope you make a lot of cash on the deal.
Sissy
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Jan
I am not sure if Eric funds hard money lenders. I would think not because he only lends (rents) the money for one day on the funding. You could call him and ask if he funds HML. 360-739-7549 or 1-800-262-6035
Sissy
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Thanks sissy for the insight. I will keep you posted on how it turns out.
Thanks for the phone number Sissy....Jan
I would just like to say thanks to all involved in the questions and anwering session on this topic. Just reading your comments confirmed and cleared some questions that I had as it relates to assigning REO and shortsale deals. If I may add, for me it really just boils down to finding buyer's for the deal and buying properties at the right price. I feel I can find deals all day long.
Again Thanks and Happy Investing!
Has anyone done this and had success?
Hey Joe! While I haven't done an assigment in a few years I have had a form of succes at this. Let me explain. While living in Broken Arrow Oklahoma (2001-2004), I received a phone call from a seller who was filing bankruptcy and just wanting to get out of her house without losing the house under bankruptcy or foreclosure. I then proceeded by taking her property "Subject To" meaning I didn't have to get financing after reinstating the property through her attorney to sell the property. I quickly rented the property out for a positive cash flow and making her monthly mortgage payment to the bank myself. After one short year I sold the property to another investor with a tenant in place for a $10K profit. What made this deal a success is that the homeowner was motivated to sell me the house and very cooperative. I still call/email her from time to time just to say hello.
Assignments as we are discussing does work if you are in questioned about it. You just have to work the details of finding the property and offering a good price and then finding a buyer. Ideally finding a buyer and pursuing the property afterwards is most helpful but it does not always work in that order as you can see by my example. That it will give you an idea of how much to offer to help create your desired profit. Do what you fill you have the stomach for.
Much Success!
Rodney
Hey Kim and Charles;
what you wrote makes sense, so I thought I'd give it a try. I found a house for sale on an ebay auction. The price right now is around $550. The assessed value that's listed in the auction is $31,500, and taxes are around $623/year. In zillow, the property values run from 30-40k, so it verifies the property value. According to the auction, the winner needs to send $2000 for a title search and closing costs within 2 days after they win the bid. I want to get ahold of the owner, but why would he be willing to give me info, since he's looking to sell the property too. In other words, if I tell him what I'm trying to do, why would'nt he just do the same thing? and secondly, how do I know I'll get a qualified buyer? I'm a little scared.
-blakjakmatt
p.s.
..and since I'm just getting started, don't have much money to work with.
what you wrote makes sense, so I thought I'd give it a try. I found a house for sale on an ebay auction. The price right now is around $550. The assessed value that's listed in the auction is $31,500, and taxes are around $623/year. In zillow, the property values run from 30-40k, so it verifies the property value. According to the auction, the winner needs to send $2000 for a title search and closing costs within 2 days after they win the bid. I want to get ahold of the owner, but why would he be willing to give me info, since he's looking to sell the property too. In other words, if I tell him what I'm trying to do, why would'nt he just do the same thing? and secondly, how do I know I'll get a qualified buyer? I'm a little scared.
-blakjakmatt
p.s.
..and since I'm just getting started, don't have much money to work with.
Man.. talk about buying a pig in a poke.. Are you even going to look at the house?? IS there a house there?? Is it fire damaged? Flooded??
Maybe the only value is land value. Be very careful with this kind of thing.
Did you read the article on virtual wholesaling above wmark1963?? b4 you comment, i think you should read. thanks-
blakjakmatt
blakjakmatt
Yeah.. I read it. And my comments stand.
How do you know there is a house there NOW? The pictures on the Internet? When were THOSE taken?
How do you know what repairs need to be made? You trust the seller to tell you?
There are A TON of tools online, and they are very useful. But there is NO substitute for boots on the ground. They don't have to be YOUR boots but they need to be qualified boots that you can trust.
But hey.. it's not my 2550.00 so no worries.
Here are some other peoples's comments on EBay RE:
http://homebuying.about.com/od/howtobuyahome/a/online_auctions.htm
http://www.msnbc.msn.com/id/26988571/
And here is the other side- well at least for SELLING on EBay. For buyers, it still seems to be caveat emptor.
http://realestateredneck.com/
your questions are what my email was about. since you don't have the answers, maybe someone else out there does.
blakjakmatt
Dear blakjakmatt:
I can speak with experience that all ebay houses are not created equal. Some of the sellers buy foreclosed homes in bulk, the pictures on ebay were provided when they went to foreclosure which may have been months ago. Since that auction they could have been vandelized or condemned by the city or county. The seller is not obligated to give full disclosure, thus the wording "no warranties expressed or implied" "due diligence". Many will tell u they have not been to the house and are providing to you as it was provided to them. But here is what I do. I look up the address with the assessors office and see what it last sold for and when, then I call the assessors to insure no new leins or taxes or special assessments have been levyed. Then if I know someone who lives in that area I have them do a drive by or sometimes you can get a real estate agent who lives in that area to go to the property and take some photos I offer to pay for gas and there time or send them referrals in exchange for their assistance. Or go to cyberhomes.com and put in the address. Sometimes even if the house is a nightmare you can tear it down and you have the value of the lot for a new build if you get it cheap enough. I think what wmark1963 was trying to say was to cover your ass ets, no one on this site likes to see someone fall into a horrible deal. Ebay auctions can produce bad deals dishonest people are a fact not fiction. I have seen great deals then called the assessor and found out the winning bidder would have only 10 days to bring the house to code or the city would tear it down and bill the owner thats not a bill you want to get on a house u just purchased. With ebay houses ALWAYS ALWAYS ALWAYS close with a title company, get title insurance and a warranty deed trumps quit claim deed everytime. Hope this helps.
Donna
I am out here quite a bit reading and trying to learn. One thing everyone says is to re-read Deans book, and anything else you can find. Some areas that I have been thinking of trying are short sales and virtual wholsaling. The problem is people have said that I should really use someone's system for these areas. However, there are soooo many different ones out there, how do you decide who is worth spending time and money learning from, and who is just out to cash in on my dreams?
Stephen
Granny Donna is spot on. E-bay auctions are VERY dicey. I sold REO's in Boston, and the way REOs work, in part, is this:
1. House is foreclosed; bank takes it back and it is now called an REO;
2. Bank gives REO to Broker A, who has won the property in often-times the highest brokers priced opinion (BPO); Broker A has a listing agreement for say 6 months. If A doesn't sell it within the certain time, Bank gives to Broker B, who has won the latest BPO. If B doesn't sell it within a certain time frame, it will go to Broker C.
3. The broker I worked with was usually the C or D agent, so by the time we got the properties, the property had been vacant for well over a year and "winterized" (that's when the house is drained of all fluids so pipes don't burst in winter). If you are buying a property that is winterized, good luck! Your inspector can only do a "dry" inspection (can't warranty the pipes and water system). Also, many of these properties have no electricity, so your inspector can only do so much - he can't read minds so doesn't know what shape the electrical system is in! Think everything through!
This can be personally very dangerous and strings to Donna's and other's thoughts about buying sight unseen. Maybe the house is in a very high crime zone; maybe gangs have taken over the neighborhood and/or house. Maybe the house burned and though looks fine on the outside, isn't worth the cost of rehab to the owner.
One house I showed had a dead body in it - no kidding! Vandals always break in and steal cooper piping for crack money. One house I showed had the buyer's car stolen while we were inside! He had no alarm and no lojack! Get a lojack!
I'm NOT trying to throw water on anyone's blanket - REO's CAN be great deals. Maybe if you're a newbie, you should work in your own garden - look for deals, whether they are in foreclosure, have been foreclosed on, or whatever, but in your own county so you can see what you're getting yourself into. Lots of properties for sale now already have an appraisal in hand already paid for by the seller, so when you call sellers, ask them that! If you can't afford an appraisal for each deal (who can?), then hire an experienced handyman that you trust, and drag him along to look at the property and pay his hourly rate to look for things that need repairs. Lots of handymen are unlicensed contractors for many different reasons, and lots of them know exactly what they're doing.
Find a local realtor (put an ad up on Craig's List) and explain what you're trying to do. The realtor can set up daily email alerts to you. Have realtor look for FSBO's, long DOMs (long days on the market), expired listings - think out of the box, but in your own county to start with.
Happy thoughts! Happy thoughts! Hope some of this info is useful!
Being a newbie myself, and thank you Sissy for posting the virtual wholesaling article, it just seems to me that I personally would want to kick the tires sought of speak b4 doing these transactions virtually.
I believe newbies (such as myself) should start whether you are beginning to assign prop, bird dog deals, buying REOS, etc. closer to where you live. I know for one that I have an investor that has given me specific guidelines that he wants me to look for. He wants to find REOS at around $150K about 20 minutes away that are need the public transit line used in th east bay area where I live in good neighborhoods. I now know my goals and who to call (realtor) and ask them to look at REOs in this price range and where they need to be. Then I take a drive to ck out the neighborhood, watch to see how the neighboorhood looks (are there a lot of other foreclosures which will lower prop values even more which may not make this a good deal for my investor). As mentioned above, there may be high crime if theere are boarded up houses (even in nice neighboorhoods) where crack heads may loiter.
Point of my story is that I wanted to share my thoughts that I would only use virtual wholesaling via the internet if I knew someone that could do a drive by for me. The pics could be of anything, you don't know who the seller is, there are just so many open variables that would make me jittery just to think of buying such a large asset as a house on ebay w/o ever seeing it with my own eyes and seeing the neighborhood, etc , and I can't imagine the person we would wholesale to wouldn't have the same feelings as well.
Just my 2 cents.......we all want to think outside the box, but sometimes we first need to build the box (doing our first deals closer to home) before we can step outside of it!
Neil
I feel virtual wholesaling is not a beginners game. It is more of an advanced technique. Although when I started investing I was buying houses 450 miles away from where I was living but, I built a good team first and I wasn't wholesaling. I was in a buy and hold mode.
Wholesaling can be done in every city in the country, why not start in your hometown?
You've got to find your obstacles and call them out! Unsheath the sword, and do battle with whatever it is that holds you back!
I have received some expired listing information from a Realtor in the area. She is no longer representing the sellers, and i can't find their home listed at a FSBO. So, how do you suggest i go about contacting them to find out if they are interested in selling. Any key words or techniques?
Mati
Live life today, because you never know what tomorrow can bring!
Not sure what your plan is, BUT
Write a letter and send it to them if you still have the address. It worked for me. I sent out 3 letters and 1 called me back. Let them know you can sell OR buy their home quickly .And if they are not listed with a realestate agent any more, there are different ways you can go about it depending on the situation.
.
My plan with the expired listings would be to contact those homes that i feel fit my investor's needs, see if they are still interested in selling their home, and if they are then assigning it to Mr. Investor. However, i was wondering how to go about approaching them about their home. They might not want to be bothered with Sales Calls per say ... can you post some paragraphs from your letter for all of us to share ... especially if you were able to get a response from a seller!!!
Mati
Live life today, because you never know what tomorrow can bring!