QUOTE OF THE WEEK
“You can’t run in the weeds with the big dogs if you pee like a puppy.”
-Judge Larry Joe Doherty-
This is our 3rd installment of the Rock the Real Estate Newsletter and we are very pleased with the feedback that we’ve been getting from you guys! We are so happy that we are providing valuable information that you are finding useful! (For those of you who missed the last two newsletters, you can find them on our website at www.rocktherealestate.com.)
This week we are delving further into wholesaling and answering the often-asked question of how to find motivated sellers which is the first thing you’ll need to do in order to get a deal. I’ll use a personal case study to demonstrate how I went about finding one of my motivated sellers and how I closed the deal.
Last week, I told you guys that in addition to real estate advice, I was adding a section called, “Manifestation Corner” to share with you “manifestation” techniques, affirmations, and just general life lessons I have learned along the way to help me achieve goals in business and life (for those of you who are interested). So, this week I have another technique that is really cool and has worked for me as well as countless others. So strap in and let’s get to it!
WELCOME TO ROCK THE REAL ESTATE!
Lena W. Claybon
FINDING MOTIVATED SELLERS
There are several ways to find sellers who are motivated. Some are free and some require a little investment. Let’s look at the FREE ways first.
- Driving for Dollars – this is a popular one. D4D (as it’s sometimes referred to) is nothing but choosing a neighborhood that you’re interested in and driving each street looking for either vacant houses or houses with “For Sale By Owner” signs. You’re not looking for realtor signs because realtor contracts cannot be assigned and, usually, those are houses that are being sold at market value. As we discussed last week, when you’re wholesaling, you’re looking for houses that can possibly be bought for 30 below market value ideally.
- Online – Though they’re not easy to find, some deals can be found on sites such as “For Sale By Owner” (FSBO), Craigslist, FB Marketplace and Zillow.
- Networking – Going to local REIA (Real Estate Investors Association) meetings in your area is a good place to find deals AND investors. Also, networking with service people in your community such as mailmen, yard guys, utility workers, etc. and offering referral fees for leads can be a good way to find deals. Let them know what you’re looking for and tell them you’ll compensate them if their lead(s) results in a sale. You’ll be surprised how people will respond to the possibility of making an extra $250-$500 if all they have to do is provide an address!
- Bandit Signs – Many wholesalers use bandit signs around neighborhoods and in high visibility areas such as street corners. All you need to write is a simple, “WE BUY HOUSES” and a phone # on the sign. However, you have to know the legalities of your area when it comes to bandit signs. Some cities only allow them to be posted in certain areas and at certain times like on weekends. Also, in order for them to be effective, you really need to put out at least 20-30 at a time around the city.
- Direct Mail – Direct mail is probably the most expensive form of marketing depending on how many pieces you mail at a time. The way it works is that you send letters or postcards to a list of owners in a certain area letting them know you’re looking to buy a home in that area and to give you a call if they’re interested in selling. It doesn’t have to be complicated. Here’s a sample message:
Hi Mr/Ms _______________
My name is ____________ and I am interested in buying a
home in your area within the next 30 days. I understand you own the property at __________________________.
If you are interested in selling at this time, please give me a call at __________________ to discuss. Thanks for your time.
You can get a mailing list from a list provider such as `ListSource” or
Flipthisrealestatelist.com for “vacant houses”, “absentee owners” or “tax liens” and include the criteria you’re interested in such as zip code, type of property, % of equity, etc. Once you have your list, you can either mail manually (which I don’t suggest) or you can use a mail service such as “click2mail” to mail your letters or postcards. The idea is to get motivated sellers calling you which saves you having to go look for them. I have used this method with lots of success!
- Real Estate Software – There is software such as Propstream that gives you the ability to download lists from their program. It is also helpful in finding Owner’s contact info for houses you might find through Driving for Dollars and pulling up area comps. This type of software also hosts a lot of other features that can be useful. However, it comes with a monthly subscription which can be well worth it if you’re committed to doing this business. But, if you’re not sure, most programs come with a free trial so you can test it out before diving in.
One Friday evening around midnight, I thought I’d check Craigslist before going to bed just to see what was there. (This was a little unusual for me because even though I have gotten a couple of deals before from Craigslist, it’s not very often I find good deals there, so I don’t check it every day, especially not at midnight.)
But, at any rate, I checked it and there was a posting that had just been put up maybe minutes before, of a house for sale in a great area not far from me. It was a fixer-upper and from the description sounded like the kind of house I’d be interested in, so I sent an email and text to the contact info listed. Early the next morning, I got a text back from the guy saying to give him a call. I did and found out he was selling his father’s house who no longer lived there.
This guy lived out of state and was only going to be in town a couple of days to get the house cleaned out and sold (so he was motivated). The greatest part was, because the house needed a little work (which was mostly cosmetic), the asking price was almost half of what the ARV would be (I did my research before going). So, I knew immediately after doing a walk-through that I wanted the house, but I had to play it cool.
He mentioned some other people were coming by to see it but I made up in my mind that I was not leaving there without that contract! So, after a little negotiating back and forth, I pulled a contract out of my folder (I always have one with me), filled in the blanks, and presented it to him. He said he needed time to read it over but, again, like I said, I was determined not to leave there without it so I told him I’d walk through again and check it out while he had time to read it over.
I sensed he was trying to buy time so he could see what the other offers might be but I wasn’t leaving. Someone else arrived. I gave them space but I stayed around. Turns out, it was an agent looking for a house for a client so he couldn’t make a decision right then. After he left, the Seller and I talked again. He could see how serious I was. He went for a long walk with his brother to discuss it while I stayed there and talked to his wife.
When they arrived back, he told me they decided to give me the contract! That afternoon, I sent the deal out to a few of my buyers via text. By Sunday afternoon, I had 3 offers. Monday, I assigned the contract to a buyer and made a $5,000 profit. Not bad for less than 72 hours of work! I’m not saying they all go that fast or that smoothly but it’s nice to know there’s a business out here where you can realistically make that kind of money (legally) in such a short period of time!
Have you ever heard of the 2-Cup Method? It is a manifestation technique that is said to ‘accelerate’ the manifestation of a desire in a person’s life.
There is a field of science that teaches the existence of Infinite probabilities in the Universe. It says that whatever you can think already exists as a probability. This method is based on that belief.
The premise is that you take 2 empty cups and on one you put a post-it note or tape a note of where you are currently in terms of what you’re trying to manifest. And on the other, you put a note stating your “Desired State”.
For instance, if you’re wanting to manifest $1000 but you only have $200 in the bank, then you put “Current Bank Account – $200” on one cup and “Desired Bank Account – $1000” on the other.
You pour water into the `current’ cup filling it. You then take the water that’s now in the `current’ cup and pour it into the `desired’ cup. You take a moment to contemplate your `desire’ (some say visualize it), then you drink the water. That’s it.
You then throw away the post-its, put away the cups, and go on about your day. And in a short period of time (days/weeks), you are supposed to receive your “Desired” manifestation. You’re not supposed to try to figure out `how’ it’s going to come, just let the Universe work its magic.
Let me add that it needs to be something you really `think’ you can achieve. Don’t put something like “I want a million dollars” if you really don’t feel that’s something you can accomplish or have any time soon. Maybe start smaller and work your way up to the bigger things.
All I can say is, I don’t know if it’s because I try to stay open-minded about all things these days because the older I get, the more I realize how much I don’t know, but I tried this and it’s worked for me twice. They were both business-related desires and they manifested. But people have tried it for relationships and many other types of manifestations. I, obviously, can’t guarantee that it will work, but I’m just presenting you the information and giving you the benefit of my experience with it. Have a blessed day!