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HOW TO WHOLESALE HOUSES | PROCESS EXPLAINED | REAL ESTATE INVESTING & WHOLESALING - YouTube
Channel: unknown
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what's up guys my name is hamza welcome
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to my channel if you don't know who i am
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i've been in real estate for over 13
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years i've done over 1800 different
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deals and i've lost
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and invested over 6 million dollars
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figuring out the wholesale real estate
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game
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the purpose of this particular video is
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to talk about the wholesale process
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a lot of people have heard about
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wholesale but don't necessarily know
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exactly what it is
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or like what it actually entails right
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and if you don't know
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on my channel i've created a playlist
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that i'm breaking down the entire
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process
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start to finish teaching you everything
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you could possibly know
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that you should know in this particular
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market in order to wholesale
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successfully don't forget to subscribe
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comment what you like what you don't
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like what you want to hear what you're
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confused about
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and like the video if you like the video
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okay moving on
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so basically wholesaling what it is is
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for example you're finding a motivated
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seller
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somebody that's willing to sell their
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property at a discounted price
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okay the reason you're getting it at a
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discounted price is because you're
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solving a particular problem for that
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seller
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okay that's very important to understand
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the reason we're paid well as
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wholesalers
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is because we are solving major issues
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for the home
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owner or the investor or the landlord
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whoever it is that owns that particular
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property
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so what you're doing at that point is
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you have one of two options when you
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negotiate the deal
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you either buy for yourself as an
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investment and now you have the
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best deal on an investment that you
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would have usually paid more for if it
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went to
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um if went to the open market or if you
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bought it from another wholesaler
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so you learn the art of finding the
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absolute best deals but number two
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if it's a deal that's just not for you
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or you just don't have the full capital
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to take on the project
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you're going to learn how to assign that
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particular deal
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to an end buyer that will pay you a fee
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in exchange for taking your
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place in that contract so you're
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replacing
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you as a buyer with someone else as a
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buyer you're not working as an agent
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because you're not representing anyone
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don't confuse the two it's totally
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different worlds
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as a wholesaler you're assigning your
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position in a contract
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to someone else for a fee you're giving
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them the
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property at a discounted rate for an
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exchange of a fee
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that you both agree upon now the fee
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could range from anywhere from a dollar
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to ten thousand to forty thousand to a
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hundred thousand dollars plus
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that you should not limit yourself in
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terms of what you can actually receive
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depending on how much of a discount your
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your end buyer needs to make the deal
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work for them that's the cool thing
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about wholesaling right
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is the fact that depending on what you
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got the property at
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you could end up making pretty large
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amounts of money on each of your deals
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now you're not going to make like a bank
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on every single deal
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that's just it's not statistically like
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you know
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realistic to think that you can but
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you're going to have deals where you
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make a little bit of money and you're
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going to have deals where you make a lot
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of money
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the great part is you're not taking on
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any of the risk of flipping a property
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right you're not buying the property
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with your own money you're not
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rehabbing the property with your money
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and you're not taking on any of the risk
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associated with holding the property
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for me that's what attracts me to
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wholesaling so much more
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than traditional flips is because that
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the
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the risk has reduced tremendously the
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only thing you're really risking
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is maybe your earners money earnest
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money deposit that you're putting
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on the contract when you sign the
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agreement with the seller
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in the time that you invest in it right
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now of course you don't want to get into
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a deal where
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you think you're they're not going to be
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able to perform because you can't find a
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buyer in time
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or it's just not a good deal or whatever
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reason we'll go over the
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like different do's and don'ts in other
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videos okay that's why
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i need you guys to subscribe go to the
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playlist that is in the channel that i'm
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going to continually add to
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okay like it's very important to do that
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so you understand because there is so
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much information out there and that's
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the problem with wholesaling real estate
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right now
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real estate investment in general
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there's so much content out there it's
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very difficult to tell
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what you should and shouldn't actually
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do or
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what's the right path to take right now
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in a pandemic for example right
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because the problem is what most people
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teach the issue is all of it works
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to an extent meaning that if somebody
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tells you cold calling is the best
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method cold calling works yeah
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absolutely but you have to do a certain
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amount of it
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text marketing works as well you have to
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do a certain amount of it
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and that's all going to vary depending
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on your market
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um the economy all these different
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factors come into play
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if you're in a public market and you're
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you're a non-disclosed state all these
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different things come into play and
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again we're going to explain all of that
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in different videos
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okay but the the point of this
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particular one is just to explain the
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the simplified version of the process of
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wholesaling so okay so we discussed a
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motivated seller so you're marketing
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in different ways like i already went
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over that in another video
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go to the channel go to the playlist
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you'll find it there
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you're marketing various ways either
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passive marketing or active marketing
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passive includes anything like mailers
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pay-per-click things like that the
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sellers are coming to you at that point
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or active marketing when you're going
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out to hunt for these sellers yourself
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you're going to drive for dollars you're
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going to do cold calling you're going to
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do ringless voicemail you're going to do
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text marketing all these different
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things
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social media marketing there's so many
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different things you you could do and
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i'm going to explain each one of them
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the the pros and the cons of all of them
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as well
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right so you're going to get a very
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detailed view of each part of this
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process so you
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understand it well enough before taking
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action
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now what you don't want to do is dive so
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deep into the information that it stops
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you from taking action completely
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what i say is once you learn a form of
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marketing do it
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start as you learn other pieces of the
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process the fastest way to learn
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is always going to be actually putting
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yourself
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to work right so you have to decide
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whether or not you're comfortable enough
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or get out of your comfort zone fast
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enough
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so you don't fall into analysis
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paralysis right like so many people do
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that like i can't explain
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how many times from our own coaching
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clients that
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we have to push them so hard because
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they're just stuck in like an analysis
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paralysis it's not their fault they just
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don't know any better
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right so we're the ones they're telling
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them look this is all you need to know
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one two three go do it this is what
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you're doing today this is what you're
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going to do tomorrow by the way we do
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offer hands-on help
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right there's education there's
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implementation i will always educate
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educate you for free okay there's
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certain things that we'll charge for in
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terms of hands-on help
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but if you want any information about
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that there's a ton of links down below
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and in the channel itself right but i'm
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not going to pitch you
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anything on in this particular series or
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in this channel if you want that help
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great if not great no you know no harm
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no foul okay
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moving on we've discussed motivated
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sellers
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next thing i want to discuss is buyers
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in general
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you have to learn how to sell these
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properties quickly especially if you
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don't plan on buying them yourself
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right so you have to figure out okay how
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do i find a buyer
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that is looking for my property exactly
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like my particular deal my area
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how do i find these cash buyers where do
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i look for them right
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by the way you do want to look for cash
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buyers not buyers that are going to get
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loans hard money loans are just as good
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as cash that's the same thing
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that's fine but a traditional loan you
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will not you'll usually not get paid for
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it
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like traditional banks usually refuse to
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pay out an assignment fee
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okay that's something you have to know
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okay and you need somebody that can
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close fast as well because wholesale
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deals usually the contracts are you know
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they'll be up in no time
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right so you've got to move really
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really really quick but at the end of
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the day
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like your return on the time invested is
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tremendous typically okay so in terms of
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these buyers
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like the easiest way to usually find
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them there's a there's a couple of
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really quick ways like there's a vendor
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that i i respect
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that i usually like if i'm going into an
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area that i'm not familiar with and
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or we pick up a property in an area i
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just don't know i'll go to him and i'll
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just buy cash buyers list like
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literally just go to him and say hey i
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need a cash buyer's list for x y and z
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he'll give me like 2 500 buyer records
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like names phone numbers emails
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for like a couple hundred bucks it's
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gonna send me a tremendous amount of
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time and i'll just upload them into text
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message software and just blast the
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whole thing and say hey
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i've got a deal under contract and xyz
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zip code are you buying in that area
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right
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and the ones that say yes or send it to
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me just get on the phone with them all
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these different things i'm going to
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discuss the processes in detail i just
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want to go over the summary of it in
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this video if you like this kind of
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content let me know by commenting or
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commenting down below
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and of course hit the like button and
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subscribe
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okay subscribe
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all right uh moving on so of course
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there are things
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and there's steps between buyer and
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seller
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or when you get the property under
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contract or even to get it under
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contract there's a process for that
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right
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you've got to know what to say to the
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seller you've got to know how to
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negotiate
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you've got to know how to fill out the
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contract all these different things
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we don't have time for in this video but
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you've got to know that these these are
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pieces that you will have to learn
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right but don't be afraid to make
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mistakes it's okay if you do you will
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make mistakes the main point i want you
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to take from this is that you
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you somewhat know what the process looks
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like so when you go to do it
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you're not just walking blind or making
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decisions that could hurt you
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or inadvertently the seller that you're
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dealing with have to remember all these
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people like
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they're usually in sensitive situations
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right so you have to be weary of that
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they're usually on a very tough timeline
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they have to sell very fast for a
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particular reason that's why they're
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selling for a discounted price
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okay and the process of actually showing
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the properties to the buyers
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setting up the showings all these
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different things how you want to
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how you want to present the deal to the
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buyers all these different little
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details between
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we'll talk about them later right so we
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talked about finding this the sellers
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finding the buyers
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you can hit up local real estate uh
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facebook groups are really good
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local ones right local real estate
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investment groups that meet up
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they might you know a lot of them still
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have zoom meetings during this pandemic
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there's there's a lot of different ways
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you can sell a deal like that's usually
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the easy part
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and you can even work backwards by the
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way and i'll explain in another video
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but you can work backwards and start
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with the buyer and then just go find
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what they're looking for it's a
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very simple way to make sure that the
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properties you're looking at are
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sellable
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right or before you even go talk to
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sellers you know exactly what your buyer
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is looking for
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okay so i'll probably upload that video
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over the next couple of days as well
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and the next thing that you gotta
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realize is that you need to find a title
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company
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a closing attorney if you're an attorney
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state and if you're a title state you
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need to find a title company that's
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comfortable with
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with dealing with wholesale deals okay
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the way you figure that out
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is um you can call you just google
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title company in x county or x city
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right wherever you live memphis
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tennessee title companies for
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uh you know in memphis tennessee and
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you'll call down the list and just ask
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hey
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do you guys deal with assignment uh
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agreements or assignment deals or
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signing deals right if they say well
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what's that
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well probably good sign you should just
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hang up or just straight up tell them
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hey i'm wholesaling a deal do you guys
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do assignments or do you work with
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assignments just be as transparent as
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you can be so
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because they're not all title companies
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will do this for you
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it's legal in most states i believe
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there's like two or three right now that
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it's not legal and you have to have a
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license in and
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there's workarounds and things like that
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well this is this isn't the video for
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that
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but most states it is completely legal
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to wholesale you don't need a license uh
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uh to do it either
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okay like this is an industry you can
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get in with basically no experience no
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licenses very and very little money
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right because what you're getting paid
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for solving people's problems okay
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moving on
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so you uh you need to find a title
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company that's comfortable with doing an
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assignment deal
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closing on your assignment deal i always
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recommend as soon as you sign a contract
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you go ahead and send it to the title
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company or
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closing attorney the reason is you want
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to go ahead and start title
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to figure out if there's any issues with
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it to go ahead and get the payoffs on
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any liens that are there
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if there's any judgments that are there
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anything that could possibly
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jeopardize the sale you don't want to
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get all the way to the end
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and you know have a buyer lined up and
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everything
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and all of a sudden all this stuff pops
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up and you lose a deal you wasted a
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bunch of time you look silly in front of
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your buyer
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you don't even have a deliverable
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property right
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those are the biggest pieces that you
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have to recognize in wholesaling a
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property
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okay finding the seller connecting the
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seller with the buyer
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assigning your deal right and let me
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explain that part as well
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right assigning a deal basically what
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you're doing is there's a separate
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form i'll i'll link all these forms down
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below like the
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you know the contract that we use of
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course i'm an attorney you need to
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advise an attorney with
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or your own state to see if it's okay to
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use in it's usually it's it's been okay
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in most states that we we operate in and
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that our students are in and you need an
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assignment
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agreement form which is usually like a
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one or two page very simple
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you know fill in the spot for the buyer
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uh whoever you're assigning it to you
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fill in a spot for you and the fee that
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you're charging
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things like that it's very
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self-explanatory but i'll do i'll even
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do a video on explaining those contracts
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and what i do i'll come back here and
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i'll link them down below as well
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okay on how to fill those out so those
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are the basic pieces that's all you
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really need to know
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in terms of the structure of a wholesale
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deal right that is the structure the
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structure is finding the seller
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finding the buyer which is
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interchangeable meaning that you can
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find the seller first or the buyer first
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you know working backwards and finding
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an attorney company or a title company
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that will close your deal without
[816]
headaches meaning that they understand
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what a wholesale deal is they understand
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what they're doing they understand what
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you're doing okay those are the biggest
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aspects but of course you have to learn
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how to comp out the properties meaning
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that you have to learn how to evaluate
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the value of a property
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you have to learn how to not necessarily
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estimate repairs but you've got to
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decide is this good condition bad
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condition movable
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like is it you know could i move into
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this thing as it is and live in it
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is it livable there's different aspects
[840]
of the buy side you have to understand
[842]
when you're pitching into a buyers is it
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tenant occupied is it vacant if there's
[846]
tenants there
[846]
are they paying on time how much are
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they paying what's the market rent right
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all these different factors
[852]
come into play when you're buying and
[854]
you're selling property regardless if
[855]
you're on the wholesale side or the buy
[857]
side
[858]
you have to understand these pieces
[859]
again we'll go over all of that now
[861]
if i missed anything or if i confused
[863]
you about something
[864]
comment down below and let you know make
[866]
sure you subscribe like this video
[868]
and don't forget to go to the playlist
[870]
on my channel that i'm going to keep
[871]
adding this library or this little mini
[874]
course to
[875]
okay so that way you're getting it step
[877]
by step and you understand the process
[879]
so you know what you're getting into and
[880]
actually
[881]
have a much higher chance of being
[883]
successful at it awesome thank you guys
[884]
and i will see you
[885]
on the next one peace
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