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Wholesaling Real Estate - Wholesaling Pre Foreclosures - Wholesaling Real Estate for Beginners - YouTube
Channel: Neva Williamson
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Hi RealSquad Welcome back to the channel today.
I'm going to share with you a wholesaling
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success story from beginning to end. Half
of the deal calls it the deal and success
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tips in you know just what I learned from
it. Even to this day I still learn for each
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transaction. So stay tuned. For those of you
that are new to the channel and new to wholesaling
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wholesaling is basically where you get a property
under contract with you and the it's a contract
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with you as a buyer and with the home owner
of the house and then basically when you wholesale.
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Basically what we're saying is you sell that
contract to someone else that we usually call
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a cash buyer and that person pays you a fee
for basically selling the rights to that contract.
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OK. So basically I found this deal from direct
mail. And if you're new to the channel I love
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direct mail it's how I have gotten majority
of my deals is how I basically built my real
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estate business over the years. So there's
tons and tons and tons and tons of different
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ways to market. People always ask me for the
best way to market and direct mail. I have
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tried a lot of different marketing techniques.
Direct mail is just one that I have been consistent
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with. Which is key. Like basically every single
marketing method works. But you have to pick
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one that you're going to be consistent and
follow up with your leave and things like
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that. And for dynamic mail I've been good
with that with getting my list and sending
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mail out and following up so over the years
I've been consistent with garlic mail. And
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so. That is how I got it. So basically for
me I sent out a letter I market to people
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that are behind on their mortgage. Basically
the list does several different places you
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can get the list. I get the list I'm going
to have to insert here I think is sit Ricardo
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or something like that but I'll look it up
so I make sure I put the correct link when
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I do the video. And basically the list that
I purchase is people that are at least 90
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days late. So here I'm in Virginia. So over
90 days� late people are usually about to
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get some type of trigger for like a pre foreclosure
status so you have to check like in your state
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if you're doing late. Kind of like each state
they're pre foreclosure process is different
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in the timelines are different. What I would
recommend that I have learned over the years
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dealing with purchasing lists of people that
are late is that people who are 30 and 60
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days late usually just go ahead and catch
up on your mortgage. Very rarely you know
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do I get deals with those. So that's why now
when I purchase a list I purchase 90 days
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or more late because I have felt over the
years that usually ends up being a list that
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contains leave of people that they cannot
catch up on your mortgage payments on your
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own. OK. So I send out a letter to people
relate basically saying that you know I offer
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help offer assistance. A lot of what I do
is just education because for what type of
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information that I provide to people because
most people in my market that are late they
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don't really know what is going on. Kind of
like I never thought I would be in this situation.
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So they usually have a lot of questions like
What are my options. A lot of my marketing
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is explaining what the options are and then
after I have that first consultation which
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I provide for free we can go from there. So
basically what I do I send that letter they'll
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call me in what I would suggest when people
call and at least have top questions that
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you just want to collect information and know
what is the next step. So a lot of times people
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like what I'm saying when people call well
it's wholly depends. That's why I say you
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have to pick a niche you have to pick a niche
meaning there's a Pacific as a specific area
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of the market that you're focusing on because
every niche you would have different questions.
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So like if I'm doing three foreclosures and
a pre foreclosure lead calls me of the first
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questions I need to access. Do you have an
auction date if you have an auction date?
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When is your auction date. Because that's
really critical. I've had people call me the
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auction date is the next phase so that definitely
you know change is how the conversation can
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go. So that's why I say you have to pick a
need because the questions that I asked pre
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foreclosure are not going to be the same questions
that I would ask someone that's calling me
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from a probate lead or something like that.
So you have to pick a neat so that you can
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specialize in that niche and help people in
that niche now. So for me doing pre foreclosures
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the top question that I asked people would
only make sure this thing was actually focusing.
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That's the thing with YouTube videos you've
got. We don't know. Worst thing that can happen
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you film an entire video and then when you
watch it is out of focus. Knowing. So yeah
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so tough questions that I X people when they
call me for instance are you know do you have
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an auction date like a date with a bank it's
going to sell the house. If you do what is
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that date. And that also asks them who's the
lender because the lender determines a lot
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of the lost mitigation options that are available
because each lender. Has different requirements
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different timeframes for different things
for when they'll stop the auction for the
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different methods to stop the auction and
things like that. So deaf I'm saying you've
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got to pick on me. You gotta pick a medium
you gotta pick in each. So once I do that
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this particular lead they call them to a to
one of our pre foreclosure letters and I wanted
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the consultation and they have equity for
wholesaling the house must have some type
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of equity for it to work because most people
that you're going to sell it to for like a
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cash buyer they're going to either want to
renovate that house to flip it or the lease
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may want to renovate it and keep it as a rental
and still they're going to want to have some
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type of equity. So you want to when people
call you in to any type of response or any
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conversation with wholesaling to determine.
How much the house is worth and how much they
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owe the bank. If they do have a mortgage and
things like that. So this one they did have
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equity and so that's how the location that
it is really good and I knew a cash buyout
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like I think he's probably going to be interested.
So next step is that I'll go over to the house
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to see the condition the house is in and that's
when I estimate repairs. Once I estimate repairs
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then I know OK what price is this work that
I need to get it under contract and then be
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able to sell this contract for a fee so that
it's still with my additional fee included
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a deal. OK. So that's the key there because
you have to sell something that still has
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equity because say the property has 80 thousand
equity. Yes there are times you can get humungous
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whole fee wholesale fees and you could get
a wholesale fee for 80 k but if your wholesale
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fee is 80 k and equity in the properties 80
k and when you sell it it's really no longer
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a deal. So that's why you have to still leave
some you know some equity in some room in
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the home to sell it so that someone else will
even be interested in selling it. OK so bull
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I got a cash buyer. I've been a wholesaler
for a while so my cash violence is way bigger
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than any amount of deals I can have like my
cash pile is like. It's like over a thousand
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people want the list. So now what I do is
I use Rockwood are really small group of cash
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biased and one that I can trust that don't
go behind my back. Don't try to kick me out
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the deal. Just stuff I did that I don't want
to deal with. So a lot of times now people
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will come to me and they ask me. For deals
and stuff like that. I don't even know. I
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don't want to be mean but you know basically
I just tell them I just already have cash
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buyers. I'm just not looking to grow my cash
far less because I have to screw from people
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or certain people don't work the same way
that I work and I just don't want to deal
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with the drama of people that are stuck not
stuck. But they have a method that works for
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them and they want to stick to that method
right. And it may not be my method but I don't
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want to be that's what I've learned. I don't
want to be in transactions where we're competing
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over the method to use. I just want to do
my thing and keep going. And meanwhile I'm
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looking for other deals because dealing with
the drama within a deal it just is just wasted
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time for me and I'm just kind of to the point
now where I'm like if you want things a certain
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way just go and get your own deal and do your
own thing. I don't really see the reason to
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go back and forth with cash buyers over anything.
So if it's not somebody that wants to do things
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that we all want to do it. I just do not work
with them. So that's like I said that's just
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my method to calm down the madness that can
happen when you're dealing with your body
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you have a distressed seller. I already have
the drama of that that I'm usually trying
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to strategize and get you know get us the
closing. The last thing I need in that have
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had to do in the past when you get a cash
buyer it also brings drama. It's like just
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cut. Just shut up okay. So now that I said
I only got really small a small group of cash
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buyers because literally you know which is
always on the same page and we're not going
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back and forth fighting with each other. And
then I'm dealing with the seller as well.
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OK. So just point things that I have learned
like I said over the years is that it's like
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you know scrutinize your cash. Violence is
way more cash buyers and deals. So don't waste
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your time dealing with people that are difficult
to work with. In the. End a distressed property
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market I would say it's not worth it because
you know it's just not worth it. Traditional
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sales is worth it to deal with the drama and
get to. People paying full price for houses
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and things like that. It's worth it to do
with the drama. But in the distressed market
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as to me it's not worth it. OK. So bull get
the cash buyer here. On the way my cash buy
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works if he's going to send his contract a
two year contract is going to give him an
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estimate to renovate the house long as he's
cool with that he signs. We get to go. We
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send the paperwork to the settlement company
settlement company starts pulling for any
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leave anything like that plus I or my aunt
had already had a settlement company from
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the beginning when I first spoke with the
homeowner pulling the title to see you know
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if the leave or correct don't automatically
start searching it for me to see if we don't
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get any surprises believes because one of
the ones that can really mess you up is h
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away because h away leaves have to be paid
to get to closing so say you know you can
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negotiate a great deal. But then when they
pull it there's a lean H weighs 20 k. Somebody
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has to pay that bill for us to get for closing
so things like that or what we're checking.
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And then once that's all clear you know literally
for my wholesale deals I don't even go to
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Kohl's and that's the beauty also of dealing
with over and over the same settlement company
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and over and over the same cash buyers. If
you would go to settlement they take care
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of everything. Like I said it's people that
I trust and not trying to screw me so I don't
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even go to settlement. They literally they'll
e-mail me to alter statements I can go through
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the closing. Make sure everything's good.
I go over it with the seller of blah blah
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and make the calls and they close and the
settlement company just wires me my wholesale
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fee. So it's like so simple. Right. When you
get all the parts to work it's so simple.
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So what's the drama in the deal. There's always
some drama in the deal. And for this particular
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mom what came up. Like I said when they pulled
that title in the beginning there was an HBO
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way mean. So we had to I had to go back to
negotiate the price down a little bit less
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so that we could also pay the Asia way that
lead them out and get the closing. So that's
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the thing too is. You have to order all the
leaves. It doesn't lean on a house for those
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leaves usually. I'm goanna need to be clear
before somebody else is going to want to buy
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it because they don't want to buy a house
with a bunch of leaves on it. But also I wanted
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to just mention that because that's like some
of the drama that I've gotten before is that
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either people or do what news the traditional
that they're used to doing traditional sales
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of traditional real estate transaction. The
the buyer would never offer to pay the sellers
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each way. Right. You know why am I paying
your bills. Dennis one of the reasons too
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that I stop working with people that you know
that I'm just not used to working with is
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because in the distressed market a lot of
times to get too close and the buyer has to
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pay some of the sellers account and Bill so
we can get to closing right. So basically
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what we do is we work the numbers so that
even with the buyer paying this is someone
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else's bill this is someone else's Asia wait
bill. Even with the buyer paying that is still
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a deal. So that's what I'm saying. I had transactions
where the cash buyer started flipping out
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even if I went back and lowered the price.
They were stuck on. Why do I have to pay somebody
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else's bill. So that's what I'm saying. When
you meet cash buyers are willing to work the
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way you want to work just kicks keep your
team small of people you want to work with
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because that's just unnecessary drama because
then I have to explain that hey even after
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you pay this HBO way bill is you still going
make a hundred thousand to me. So that's some
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of the that I'm like now I'm just to the point
now. Like I said I've been doing this for
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a while but now to the point. That's something
I don't want to. I don't want to be in the
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process. Like I said dealing with trying to
get the vehicle to closing and answering all
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these questions and drama with the actual
cash bar to keep the kid happy I just want
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a cash bar that already knows stuff like that.
You know what I mean it already just knows
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hey go back. Lower the price outlay the H
away. Do you know what I mean. I just. That's
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just what I mean. Because that also helps
me to do more deals because the more time
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you stay in the same deal trying to fix all
the drama you can't work on another deal.
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You know what I mean. So I just want to get
in and get out close and I'm on to the next
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one. So. That's my exit. And stay tuned. I
just want to let you know that you know just
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everyday wholesale in store we just want to
share it with you and let you know what I
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have learned. Tips to help you that you could
get wholesale deals and things like that.
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I'll see your next video Baba.
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