🔍
How to Wholesale Real Estate for Beginners | Wholesale Real Estate for Beginners | - YouTube
Channel: Neva Williamson
[4]
How to Wholesale Real Estate Step by Step_
Real Life Transactions
[13]
Hi, this is Neva at Timeforinvesting.com.
Today I�m continuing my segment on going
[22]
over a couple of transactions that I worked
on answering these four questions: How did
[28]
I get the lead or find the property? How was
I able to help the property owner or to motivate
[36]
them to sell? Or how to find the cash buyer?
And what was the crazy thing that happened?
[41]
This one was a property � how did I find
the lead? I found the lead, I actually called
[64]
the property owner and asked him if he was
interested in selling. At that time I think
[71]
I probably called a couple of hundred and
finally I found somebody who said, �Yes.�
[78]
So calling is a good technique but you have
to be willing to call a lot.
[82]
I would say I�ve definitely called like
a thousand people so far � so I call a lot.
[89]
I haven�t called in a long time but when
I was calling it was a lot. It took me a full
[94]
year to get somebody that says, �Yes.�
So that�s a way � a marketing method as
[98]
well.
Two, so what was the motivation for the property
[104]
owner to sell? In this situation the property
was tenant-occupied and his requirement was
[111]
that we closed on the house with the tenant
in the house.
[115]
The issues deal was that the tenant�s rent
was like the average rent probably in that
[125]
neighborhood would be like $3,000. And if
I can remember correctly she was paying like
[129]
$600. It was like something really, really
crazy because it was like a family member
[133]
but then you know you�re kind of stuck because
then you can�t evict the family member.
[138]
So she had been there like forever and he
was just kind of like, you�ve got to buy
[143]
� you get her out type of thing.
You�ll find though that when the rent is
[148]
that low that even still the cash buyers are
going to be kind of hesitant sometimes to
[158]
close with the tenant in there because then
they�re also going to have to fight to get
[163]
this tenant out as well because you can�t
really buy a property and then raise rent
[169]
from $600 to $3,000. I really think that this
person isn�t going to be able to pay it.
[173]
So you kind of know, whoever buys it knows
they�re buying this headache.
[179]
So in this situation what I did, I said, �Okay,
we�ll close with the tenant,� and what
[184]
I did, I negotiated for us to close with the
tenant and then we held back. The title company
[191]
held back, I think it was $5,000 or something
like that.
[196]
And what that does is they hold it until the
tenant leaves. So it�s kind of like it helps
[202]
the seller to also help us get the tenant
out. And just in case we can�t get this
[209]
tenant out then that money is used to actually
start the whole court process and eviction
[216]
process, and things like that so that the
cash buyers don�t have to use his own money
[220]
to get the tenant out. So that�s what I
used in that situation to get around that
[227]
issue that he�s saying, �Hey, I definitely
need you guys to close with her in the house.�
[231]
So this is a situation where it�s definitely
a good transaction for a cash buyer because
[237]
a traditional person is not going to want
to buy the headache of going through this
[244]
knowing that if you want the property you�re
going to have to evict someone.
[248]
It�s a great opportunity for us but I think
you just have to be always be aware that you�re
[254]
always trying to kind of problem-solve things
so don�t just give up when things like this
[261]
happen. So once I�d negotiated that then
I had a lot of cash buyers that were interested
[267]
in buying the property.
How did I fund the cash buyer that did buy
[272]
the property? Actually, by the time I got
this house in the contract I had like a really
[278]
large buyer�s list. But it just so happened
the guy that purchased it, he�s actually
[284]
the first cash buyer that ever gave me his
card and I got his card at a Rio meeting.
[290]
I was at a Rio meeting, they used to let us
� they still do, you put these stickers
[297]
on saying like if you�re a wholesaler, if
you�re a rehabber. And so what they say
[301]
is if you�re a wholesaler then you should
be making sure that you�re networking with
[307]
a rehabber because the rehabber will be buying
what you get on the contract that you make
[311]
to wholesale.
It helps the right people to network with
[316]
each other, and so he was the first person
that I have build myself up to, to go to � I
[323]
think at that time I hadn�t wholesale anything.
I just had like the sticker, I was like trying
[327]
to claim it and say, �I�m wholesaler,
I need a cash buyer.� And he gave me his
[333]
card. So it worked out because I probably
wasn�t able to actually get him a property
[338]
� I�m sure like a year or two had passed
but it was great that I still had him on my
[343]
list and he bought the property. So that�s
how I found the cash buyer.
[348]
And then my last question I always answer
is, �What crazy happened?� So what happened
[353]
on this one was we got ready to close. We�re
ready to close, and this property was actually
[359]
it was owned - it was free and clear but when
we got ready to close it was showing that
[364]
there was like outstanding loans from 1980
something and the owner was like, �I don�t
[370]
remember ever taking out a loan.� He didn�t
have the papers stating it was paid off, or
[377]
what was going on.
And then, the issue was because the loan was
[381]
so old, excuse me, the original bank and the
bank that it was now was I think it was like
[392]
five, six companies it just had been sold.
And if you ever work for a company and they
[398]
merged, and you know that when companies merge
they don�t really merge their systems. They
[403]
just slap the new company name on, and they
keep the systems separate.
[409]
So then I�m like calling, and calling, and
calling trying to find which section of the
[415]
bank now has access to those old accounts.
So that was taking me days. I even at this
[423]
point this title company, they sent someone
because we couldn�t � the bank couldn�t
[431]
even find the loan to say if it was paid off
or it was on. It was just literally saying,
[437]
�We can�t find,� every time we reach
someone they were like, �Oh, I don�t have
[440]
access to loans that old.�
So finally we were able to find it and it
[448]
turns out that the loan�s paid off like
the guy said because he�s saying, �I can�t
[452]
even remember taking out a loan.� And it
was for a tiny amount, and it was paid off
[458]
but the bank never went back and released
that lien when he paid it off so that�s
[463]
why it was still there. So they released it
and then we were able to close.
[467]
So that�s why I�m saying. It�s things
like that that you have to � until you get
[471]
to the closing table and everything is final,
you have to monitor and be prepared to jump-in
[479]
and solve some issues because more than likely,
like I said, something�s going to happen
[483]
because at least for me I remember when I
first started, my mentor at that time, Tom
[489]
Z., he was saying that, �Something always
happens.�
[492]
And I used to think, �Oh, I�ll just make
sure I�ll dot all the I�s, cross ever
[496]
T,� but even that is just out of my control
that something just always happens, somebody�s
[503]
calling me which is something crazy so just
be willing to jump in and work. Because if
[508]
I don�t jump in and be the person calling,
and making sure somebody finds this loan and
[515]
get the release then we�re not going to
close and the whole, entire thing is going
[520]
to fall apart. And I don�t want that for
the seller and I don�t want that for myself.
[525]
So that�s my tip for this week and I�ll
go over this again, those four questions:
[531]
How did I find the lead? I called. What were
their motivating factors? And also, this house
[538]
needed a lot of repairs, the site also that
the tenant is in there, it also needed a lot
[544]
of repairs two. And three, how did I find
the cash buyer? I found the cash buyer at
[549]
a Rio meeting. And four, what crazy happened?
There was this old lien that we had to make
[555]
sure it was released on the property.
So continue to send me your questions and
[561]
any other thing that I could tell you that�s
helpful on my wholesale deals. Let me know
[567]
those questions as you have. But these are
some of the common questions that I�d been
[573]
getting that I thought if I answered, and
actually gave you examples it would be more
[577]
helpful.
So I�ll see you � like I said, I�ll
[580]
try to do two videos a week so I�ll see
you next video. And remember to subscribe!
[584]
Bye, bye.
Most Recent Videos:
You can go back to the homepage right here: Homepage