1. Starting Up the Business
1.1. Which Legal Entity Should You Have?
1.1.1. LLC
1.1.1.1. Owner / Members Not Personally Liable
1.1.1.2. Asset Protection From Creditors
1.1.1.3. Flexibility In Election Of Tax Structure (S-Corp)
1.1.1.4. Flexibility In Election Of Tax Structure (S-Corp)
1.1.2. LLC Treated As An S-Corp (This Is My Preferred Method)
1.1.2.1. Apply For An EIN Number (Tax ID #)
1.1.2.2. Get A Company Bank Account Set Up
1.2. Tools To Get Started
1.2.1. Phone System(s)
1.2.1.1. Google voice
1.2.1.2. VODA
1.2.1.3. RingCentral
1.2.2. CRM
1.2.2.1. REI Simple
1.2.2.2. Free Podio CRM REI automated squad
1.2.3. Software (MLS Comps, pull list, and cashbuyer)
1.2.3.1. Facebook Group to network
2. The Process
2.1. STEP 1- Marketing
2.1.1. A. Market Research
2.1.1.1. Look at the most active cash buyers
2.1.1.2. Find the best hottest zipcode
2.1.2. B. Marketing Campaigns
2.1.2.1. Direct Mail
2.1.2.1.1. Lists
2.1.2.1.2. Sample Mail Pieces
2.1.2.2. Cold Calling
2.1.2.2.1. Best Skip Tracing Sites
2.1.2.2.2. Outbound cold calling script
2.1.2.2.3. Call them using the phone system that you have.
2.1.2.2.4. KEYS
2.1.2.3. Driving for Dollars
2.1.2.3.1. Look for vacant homes
2.1.2.3.2. Best App for diving for dollars hands down free trial
2.1.2.4. RVM
2.1.3. C. Marketing Plan
2.1.3.1. Budget
2.1.3.1.1. Drive for dollars
2.1.3.1.2. Stack your list with a list stacker pro
2.1.3.1.3. Cold calling stacked list
2.1.4. ACTION CHECK POINT
2.1.4.1. Yes I will start sending marketing right now
2.1.4.2. Yes I have zipcodes
2.2. STEP 2- Talking to Sellers
2.2.1. Talking to sellers
2.2.1.1. Answer the phone LIVE if possible
2.2.1.2. Prospect or Suspect?
2.2.1.2.1. Prospect> make appointment
2.2.1.2.2. Suspect> make offer and follow up
2.2.1.3. Initial Phone script/Questions
2.2.1.3.1. Appointment script
2.2.1.3.2. Simple script 1
2.2.1.3.3. Simple script 2
2.2.1.3.4. Misc questions for live answers
2.2.1.3.5. NOTE: Pick 4-5 questions to ask.
2.2.2. VOICEMAIL- if you can't answer live
2.2.2.1. Sample Voicemail script
2.2.2.1.1. Ringless voicemail drop script
2.3. STEP 3 - Making Offers
2.3.1. A. Learn How To Quickly Prescreen Sellers
2.3.1.1. Three Main Questions
2.3.1.2. NOTE: I sometimes like to ask this question: "Are you calling because you need to sell the house in the next 30 days, or are you just testing the waters to see what kind of offer you will get?"
2.3.1.3. While your talking you're gathering information! REMEMBER TO LISTEN
2.3.2. B. Comps (ARV) and Repairs
2.3.2.1. Look at Active's as well as Solds
2.3.2.2. Great Sites
2.3.2.2.1. Zillow
2.3.2.2.2. Redfin
2.3.2.2.3. MLS
2.3.2.2.4. Real Quest Express
2.3.2.2.5. icomps
2.3.2.3. Just take the average of 3-4 - or take the lowest, multiply by 75% - 80%
2.3.2.4. Think about how you can make this property marketable to other investors
2.3.2.4.1. Why would they want to buy your property / contract?
2.3.2.5. Quickly Estimating Repairs
2.3.2.5.1. $5, $10, $15 / sf
2.3.3. C. Making a cash offer
2.3.3.1. Offer for nicer homes - to rehabbers
2.3.4. One Page Wholesaling Contract
2.3.4.1. NOTE: Always have an attorney review your contracts before you use them
2.4. Step 4 - Follow Up
2.4.1. 50% - 75% of your deals will come from the follow up, not the initial call
2.4.2. A. What kind of follow up can you do?
2.4.2.1. Voicemail
2.4.2.2. Direct Mail
2.4.2.3. Phone Calls
2.4.3. B. Manage tasks in CRM
2.4.3.1. Every lead must have an open task
2.4.3.2. With a due date
2.4.3.3. Assigned to someone to follow up
2.4.4. ACTION CHECK POINT
2.4.4.1. Yes I understand it's Extremely important to follow up
2.4.4.2. Yes I will always have an open task with a next action step
2.4.4.3. Yes I selected 1 - 2 methods of follow up
2.4.4.4. Yes I will be the BEST at follow up in my market
2.5. Step 5 - Finding Cash Buyers
2.5.1. Advertise On-Line
2.5.1.1. Online Places
2.5.1.1.1. BiggerPockets
2.5.1.1.2. Facebook Marketplace
2.5.1.1.3. Facebook Buy / Sell / Trade Groups
2.5.1.1.4. Zillow? - Advertise properties that you currently own
2.5.1.2. How To Find Cash Buyers
2.5.2. Signs
2.5.3. Partner with Other Wholesalers
2.5.3.1. Look in Craigslist for other investors that are advertising properties. Ask them if they would like to partner with you on the deal. Avoid daisy chains - don't let them mark up the price
2.5.3.1.1. Send it out to all the wholesalers that you know
2.5.4. Call Local Realtors that represented cash buyers
2.5.5. Go To Your Local REIA Groups
2.5.6. Questions to screen the cash buyers and find out their buying criteria
2.5.7. Misc Notes
2.5.8. ACTION CHECK POINT
2.5.8.1. Yes I know where to find cash buyers
2.5.8.2. Yes I will focus on the buyers criteria
2.5.8.3. Yes I know how to build my buyers list
2.5.8.4. Yes I will work on find buyers first
2.6. Step 6 - Closing the Deal
2.6.1. Important
2.6.1.1. Find a local attorney to help you and give you advice
2.6.1.2. Consider partnering with a local wholesaler on your first few deals...
2.6.1.2.1. They have the buyers already
2.6.1.2.2. They know the Title Companies to use
2.6.1.2.3. They probably have the money to close if they have to
2.6.1.2.4. Here is a JV Agreement that you can possibly use
2.6.1.3. Potential Brokering Issues
2.6.2. Two main ways to close
2.6.2.1. Assigning the contract
2.6.2.1.1. Assignment Agreement
2.6.2.2. Double Close
2.6.2.2.1. You buy it (A-B)
2.6.2.2.2. You turn around and sell it immediately (B-C)
2.6.2.3. You need to find a local investor friendly title company / closing attorney
2.6.3. Get the money
2.6.3.1. Hard Money Lenders
2.6.3.2. Private Money
2.6.3.2.1. Transactional Funding
2.6.4. Start marketing the contract right away
2.6.4.1. Bandit Signs
2.6.4.1.1. Fb Groups
2.6.4.2. Local Wholesalers
2.6.4.3. Sphere Of Influence
2.6.5. What if you can't close...
2.6.5.1. You need to make sure you have at least a 2 week inspection contigency
2.6.5.2. You need to make sure you have buyers already - that can come look at the house
2.6.5.3. Blame it on the Three "R's
2.6.5.3.1. Retail, Rents, Repairs
2.6.5.4. Cancel the contract - OR renegotiate a lower price