Wholesaling Real Estate 101 - MindMap
Wholesaling Real Estate 101 Mindmap. The easiest way to make huge profits flipping houses with little to no money down. David Dodge and Mike Slane from the Discount Property Investor Podcast love teaching how they do 10 wholesale deals a month. You can learn how to flip real estate with David and Mike too!
1. Finding Motivated Sellers
1.1. Networking
1.1.1. Word of Mouth
1.1.2. REIAS
1.1.3. Other Networking Meetings
1.2. Bandit Signs
1.3. Direct Mailer
1.3.1. post cards / yellow Letters
1.3.2. Blanket marketing
1.4. Online Ads
1.4.1. Google Adwords
1.4.2. Facebook Pages and Ads
1.5. Driving for Dollars
1.5.1. Deal Machine APP
1.6. Online Classifieds
1.6.1. Craigslist
1.6.2. Facebook Marketplace
2. Make a ton of offers
2.1. This is a numbers game - the worse the offer is, the least likely it is to be accepted.
2.1.1. The Higher the offer on average = less profit but more accepted deals
2.1.2. The Lower the offer amount on average = more profit but less accepted deals
2.2. Don't chase properties that are:
2.2.1. Not motivated
2.2.2. Want retail value
2.2.3. Are just shopping for an offer
2.2.4. Don't need to sell... just want to
2.3. The best properties are the ones that:
2.3.1. NEED TO SELL
2.3.2. The Property is distressed
2.3.3. The seller is distressed
2.3.4. They are at risk of losing the property
3. Secure property with a contract
3.1. Keep it simple! This is not rocket science :)
3.2. In order to market a property for sale legally you have to have it under contract
3.2.1. Remember you are marketing the "Contract" to purchase the property.
3.3. Try to use long inspection periods and make sure to have out clauses in your contract
3.4. Open Escrow with your title-co
4. Market the properties to Investors
4.1. Secure Property
4.1.1. Get photos
4.1.2. Add lockbox if Vacant
4.2. Send to Buyers List
4.2.1. Call Buyers directly
4.2.2. Text Buyers directly
4.2.3. Email Blast the Buyers List
4.3. Post Online
4.3.1. Craigslist
4.3.2. Facebook
4.3.3. Linkedin
4.3.4. Biggerpockets
4.4. REIA Meetings
4.5. Direct Mail
4.6. Bandit Signs
4.7. FSBO Signs
4.8. List on the MLS
5. Sell Property to Investor
5.1. Mark the property up your desired "Wholesale Fee"
5.1.1. Remember you a selling your "Contract" to purchase so you are really marketing up your contracted purchase price....
5.2. We recommend you shoot for 4-6k profit so you have to mark them up 5-7k as investors will negotiate you down.
5.3. Once you have a buyer you can assign your contract to the end buyer or double close it.
6. Close the deal
6.1. Assignment
6.1.1. The title company will handle the title work and the closing. This usually takes a minimum of 4-6 days, sometimes as long as 10-15 days.
6.1.2. Deliver the original purchase and sale agreement (A-B) to your title company and open escrow.
6.1.3. Deliver the assignment agreement to your title company.
6.1.4. Collect your assignment fee! You do not even need to go to the closing.
6.2. Double Closing
6.2.1. Same as above but you actually buy the house from the seller and then turn around and sell it to your cash buyer. You do this to HIDE what you are making and/or keep the buyer from meeting the sellers among other reasons.
6.2.1.1. Depending on your state you might not even need any money to do this. (this is called a same day double close - DRY FUNDING)
6.2.1.2. In some states this might require Transactional Funding or Gap Funding.
6.2.2. Deliver the original purchase and sale agreement (A-B) to your title company and open escrow.
6.2.3. Deliver the B-C Purchase Agreement to your title company as well and set closing for same day as A-B contract.
6.2.4. Close the deal and get paid!