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REALESTATEWHOLESALINGBIBLEThe Fastest. Easiest Wayt Get StartedRealinEstateInvestingTHANMERRILLWILEY
ContentsIntroduction1231The Shrinking Middle Class in America1How I Got Started Investing in Real Estate3Why We Decided to Start Wholesaling4Set Skepticism Aside—It Will Hold You Back5Is This Book for You?6The Catalyst to a Better Life7Wholesaling Overview: What's in It for You?9The Benefits of Learning How to Wholesale Real Estate9Conclusion13Gotting to Know Your Local Real Estate Market15The Importance of Gaining Intimate Local Market Knowledge15Step 1: Gain an Understanding of Local Market Metrics16Step 2: Get to Know Price Points of Properties by Neighborhood17Step 3: Understand Zoning Laws within the Market18Step 4: Study Your Competition19Step 5: Identify Key Real Estate Professionals in the Market19Set Your Focus20Conclusion20Establishing Your Marketing Presence21Foundational Marketing Materials21Business Cards22Seiler Credibility Packet22Buyer Credibility Packet23Private Money Credibility Packet23V
CONTENTSvi4567Gore Website24Facebook Page for Your Business25Easy-to-Remember Phorie Number25Memorable Business Name26Logo and Business Color Schemes26Conclusion26Understanding the Pre-Foreclosure Process27Definition of Foreclosure and How to Learn Your State's Process27Types of Foreclosure28Buying Properties from Peopie in Foreclosure32Conclusion33Finding Pre-Foreclosure Properties37Finding Recent Pre-foreclosure Property Filings37Conclusion40Finding Wholesale Deals Utilizing Direct Mail Campaigns41Step 1: Find the Best List42Step 2: Decide How Many Times You Will Mail the Prospect44Step 3: Create a Spreadsheet to Track Your Mailings44Step 4: Determine What Types of Direct Mail Pieces You Will Use45Step 5: Craft a Compelling Message46Step 6: Choose Postage48Step 7: Set Up Your Inbound System49Step 8: Fulfill Your Campaigns49Step 9: Note Response Rates50Conclusion50Finding Deals on the Multiple Listing Service53The MLS Offer System53Outsource Steps within the System56Conclusion57
CONTENTS8910viiFinding Deals Utilizing Craigslist59Searching for Properties under the "Real Estate for Sale" Section59Searching for Properties by Keyword60Contacting Landlords Who Are Renting Properties60Contacting People Having Estate Sales61Creating Advertisements That Get People to Contact You61Creating a Compelling Ad Title/Headline61Using Symbols to Make Your Title/Headline Stand Out62What the Body of Your Advertisement Should Communicate62Conclusion64Other Killer Ways to Find Profitable Real Estate Deals65Purchasing Internet Leads65Questions to Ask about Purchasing Internet Leads66Facebook67FacebookAds67Other Real Estate Professionals and Investors68Door Hangers69Bus Bench Advertising69Banners69Vehicle Wraps70Car Magnets70Billboards71Teievision Advertising72Conclusion72Overview of How to Value Real Estate73The Cost Approach73The Income Approach74The Sales Comparison Approach74A Word of Caution75Always Determine the Highest and Best Use of the Property75
CONTENTSYour Goal as a Wholesaler When Making Offers76Conclusion76Deal Evaluation System Stage 1: Gathering Information77Vital Information to Gather in Stage 178Recommended Tools to Gather and Track Information82Conclusion84Deal Evaluation System Stage 2: The Desktop Evaluation85Step 1: Confirm the Property Details by Reviewing the Property Card85Step 2: Pull the Listing Sheet If the Property Is Listed with an Agent86Step 3: Understand What You Are Trying to Determine with the Sa/esComparison Approach87Step 4: Find the Best Comparables Using the Multiple Listing Service87Step 5: Look for Off-Market Comparables89Step 6: Analyze the Sold Comparables to Determine Whether the PropertyIs Worth Visiting90Step 7: Classify Your Leads90Step 8: Prepare Your Comparable Package91Step 9: Prepare Your Buying Appointment Package92Conclusion93Deal Evaluation System Stage 3: The Property Visit95Filling Out the Comparable Sa/es Adjustment Grid96Performing Drive-by Inspections of the Subject Property and Comparables96Examining Comparables That Are Active and on Deposit98Making Adjustments99Calculating Adjustments103Conclusion103Estimating Repairs on Properties105Repair Cost Is a Critical Number You Need to Make the Right Offer106Our System to Estimate Repairs106Exterior Repairs107
CONTENTS1516ixInterior RepairsIIIMechanicals116Other117Things That Can Greatly Enhance the Value of a Property119Conclusion122Negotiating and Making Offers to Seilers123Negotiate with Confidence124Step 1: Uncover the Seller's True Needs and Desires124Step 2: Research the Seiler or Agent You're Negotiating With125Step 3: Know What You Are Offering before Meeting with the Seiler126Step 4: Walk through the Property126Step 5: Build Rapport and Dive Deeper into the Seller'sMotivating Factors127Step 6: Explain How You Can Help the Seiler129Step 7: Frame Your Offer130Step 8: Handle Objections Effectively130Step 9: Sign the Purchase and Sale Agreement132Conclusion132Understanding Purchase and Sale Agreements133Parties Involved133Description of Real Estate134Personal Property Included in the Sale Price134Purchase Price and Financing135Where Deposits Are Held135Financing Contingency135Condition of Premises136Inspection Contingencies136Statement Regarding Lead-Based Paint136Occupancy, Possession, and Closing Date136Deed Type137Marketable Title137
CONTENTSXAdjustmentsBuyer's Default Clause- 7Seller's Default Clause 7Risk of Loss and Damage137Addendums- 8Broker/Agent Fees 38Time to Accept-*-38Conclusion17181920How to Get the Money for Your Wholesale Deals139Conclusion140Working with Private Lenders141What Exactly Is "Private Money"?142How Is the Lender Protected?142Turning People into Private Money Lenders143Finding Existing Private Money Lenders143Can You Openly Advertise for Private Money Lenders?144Meeting with the Lender for the First Time144Conclusion145Working with Transactional Lenders and Hard-Money Lenders147What Is Transactional Funding?148Hard-Money Lending149When You Will Use a Hard-Money Lender in Wholesaling149Know the Terms150Qualifying for a Hard-Money Loan150Locating Hard-Money and Transactional Lenders151Conclusion152Building a Trophy Database of Buyers153How You Can Leverage a Database154You Must Have Software to Build a Trophy Database155Conclusion155
CONTENTS21222324xiNetworking to Find Buyers159Strategie Networking Opportunities159Networking with Other Real Estate Professionals162How to Build Relationships and Stand Out from the Crowd165Conclusion166Direct Response Marketing Strategies to Find Buyers167Craigsiist, Backpage, and Other Online-Classified-Ad Websites168Facebook Real Estate Groups169Company Website169Lead-Generation Pages (Squeeze Pages)170Penny Saver Newspapers170Reaching Out to Your Competition170Cash Buyers171Conclusion172Marketing Your Wholesale Deal175Make Sure Your Trophy Database Is Organized175Assemble the Critical Information into a Wholesale DealMarketing Package176Call Your Most Serious Buyers First176E-mail Blasts177Text Blasting177Voice Broadcasting178What If You Have a Deal to Seil but Don't Have a Buyers' List?178Conclusion179Classifying, Prescreening, and Communicating with Buyers181Classify Buyers within Your Trophy Database181The Importance of Prescreening Buyers182What to Do When Buyers Contact You183What You Need to Know about a Buyer183Communicating Property and Training Your Wholesale Buyers184Conclusion185
CONTENTSWorking and Negotiating with Buyers187Know the Comparable Sa/es in the Area187Have an Accurate Repair Cost188Create a Sense of Urgency189Common Negotiating Techniques Buyers Use189What if the Buyer Thinks You're Making Too Much?190Confirm Funding190Gase Study191Conclusion192How You Profit: Selling a Contract193What Does It Mean to "Seil a Contract"?193Completing the Assignment of Real Estate Purchase and Sale Agreement194How Do You Get Paid?195Coordinating the Closing195Common Questions196Which Is the Better Exit Strategy: Selling a Contract or Double Closing?196Common Misconceptions about Wholesaling197Conclusion197How You Profit: Double Closing201What Is a Double Closing?201Signing the First Purchase and Sale Agreement on the A-B Transaction202Signing the Second Purchase and Sale Agreement on the B-C Transaction203Know How the Buyer in the B-C Transaction Is Planning on Funding the Dealbefore You Sign a Second Purchase and Sale Agreement204What Else to Look for from Your C Buyer205Don't Pass Funding Through206Always Have Legal Counsel206Conclusion207The Real Estate Closing Process211Who Handies the Escrow and Closing?211What Is Required to Open Escrow?212
CONTENTS293031xiiiWho Selects the Escrow Company?213Are You Opening One Escrow or Two?213What Happens during Escrow?213How Do You Prepare for Closing?214What Can Cause Delays during the Closing Process?215What to Check the Day before Closing216What Takes Place at the Closing?217How to Ensure There Are No Snags the Day of Closing217Hiring Someone to Help You Process Your Wholesale Deals217Conclusion217Building Your Local Team219Real Estate Agents220Locating the Top Agents in Your Market221Hard-Money Lenders222Mortgage Brokers222Insurance Agents222Title Agent/Real Estate Attorney223Contractors223Conclusion224Building Your Business Advisory Team225Real Estate Coaches227Marketing Mentors227Negotiation and Sales Mentors227Business Management Mentors228Legal Mentors229Tax Mentors229Mastermind Group229Conclusion230The Path of Smart Growth231Preparing for Growth231Managing Your Time232
XIVIndexCONTENTSDeveloping Systems232Growing at a Sustainable Pace233Integrating Technology into Your Business Management Systems233Hiring Employees and Scaling Your Business234Constantly Improving Your Leadership Skills235237
REAL ESTATE WHOLESALING BIBLE The Fastest. Easiest Way t Get Started in Real Estate Investing THAN MERRILL WILEY . Contents Introduction 1 . Step 5: Identify Key Real Estate Professionals in the Market 19 Set Your Focus 20 Conclusion 20 3 Establishing Your Marketing Presence 21
