REAL ESTATE WHOLESALING BIBLE. The Fastest. Easiest Way. t Get Started in. Real Estate. Investing THAN MERRILL WILEY

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1 REAL ESTATE WHOLESALING BIBLE The Fastest. Easiest Way t Get Started in Real Estate Investing THAN MERRILL WILEY

2 Contents Introduction 1 The Shrinking Middle Class in America 1 How I Got Started Investing in Real Estate 3 Why We Decided to Start Wholesaling 4 Set Skepticism Aside It Will Hold You Back 5 Is This Book for You? 6 The Catalyst to a Better Life 7 1 Wholesaling Overview: What's in It for You? 9 The Benefits of Learning How to Wholesale Real Estate Gotting to Know Your Local Real Estate Market 15 The Importance of Gaining Intimate Local Market Knowledge 15 Step 1: Gain an Understanding of Local Market Metrics 16 Step 2: Get to Know Price Points of Properties by Neighborhood 17 Step 3: Understand Zoning Laws within the Market 18 Step 4: Study Your Competition 19 Step 5: Identify Key Real Estate Professionals in the Market 19 Set Your Focus Establishing Your Marketing Presence 21 Foundational Marketing Materials 21 Business Cards 22 Seiler Credibility Packet 22 Buyer Credibility Packet 23 Private Money Credibility Packet 23 V

3 vi CONTENTS Gore Website Facebook Page for Your Business Easy-to-Remember Phorie Number Memorable Business Name Logo and Business Color Schemes Understanding the Pre-Foreclosure Process 27 Definition of Foreclosure and How to Learn Your State's Process 27 Types of Foreclosure 28 Buying Properties from Peopie in Foreclosure Finding Pre-Foreclosure Properties 37 Finding Recent Pre-foreclosure Property Filings Finding Wholesale Deals Utilizing Direct Mail Campaigns 41 Step 1: Find the Best List 42 Step 2: Decide How Many Times You Will Mail the Prospect 44 Step 3: Create a Spreadsheet to Track Your Mailings 44 Step 4: Determine What Types of Direct Mail Pieces You Will Use 45 Step 5: Craft a Compelling Message 46 Step 6: Choose Postage 48 Step 7: Set Up Your Inbound System 49 Step 8: Fulfill Your Campaigns 49 Step 9: Note Response Rates Finding Deals on the Multiple Listing Service 53 The MLS Offer System 53 Outsource Steps within the System 56 57

4 vii 8 Finding Deals Utilizing Craigslist 59 Searching for Properties under the "Real Estate for Sale" Section 59 Searching for Properties by Keyword 60 Contacting Landlords Who Are Renting Properties 60 Contacting People Having Estate Sales 61 Creating Advertisements That Get People to Contact You 61 Creating a Compelling Ad Title/Headline 61 Using Symbols to Make Your Title/Headline Stand Out 62 What the Body of Your Advertisement Should Communicate Other Killer Ways to Find Profitable Real Estate Deals 65 Purchasing Internet Leads 65 Questions to Ask about Purchasing Internet Leads 66 Facebook 67 FacebookAds 67 Other Real Estate Professionals and Investors 68 Door Hangers 69 Bus Bench Advertising 69 Banners 69 Vehicle Wraps 70 Car Magnets 70 Billboards 71 Teievision Advertising Overview of How to Value Real Estate 73 The Cost Approach 73 The Income Approach 74 The Sales Comparison Approach 74 A Word of Caution 75 Always Determine the Highest and Best Use of the Property 75

5 Your Goal as a Wholesaler When Making Offers Deal Evaluation System Stage 1: Gathering Information Vital Information to Gather in Stage 1 Recommended Tools to Gather and Track Information Deal Evaluation System Stage 2: The Desktop Evaluation Step 1: Confirm the Property Details by Reviewing the Property Card Step 2: Pull the Listing Sheet If the Property Is Listed with an Agent Step 3: Understand What You Are Trying to Determine with the Sa/es Comparison Approach Step 4: Find the Best Comparables Using the Multiple Listing Service Step 5: Look for Off-Market Comparables Step 6: Analyze the Sold Comparables to Determine Whether the Property Is Worth Visiting Step 7: Classify Your Leads Step 8: Prepare Your Comparable Package Step 9: Prepare Your Buying Appointment Package Deal Evaluation System Stage 3: The Property Visit Filling Out the Comparable Sa/es Adjustment Grid Performing Drive-by Inspections of the Subject Property and Comparables Examining Comparables That Are Active and on Deposit Making Adjustments Calculating Adjustments Estimating Repairs on Properties Repair Cost Is a Critical Number You Need to Make the Right Offer Our System to Estimate Repairs Exterior Repairs

6 ix Interior Repairs III Mechanicals 116 Other 117 Things That Can Greatly Enhance the Value of a Property Negotiating and Making Offers to Seilers 123 Negotiate with Confidence 124 Step 1: Uncover the Seller's True Needs and Desires 124 Step 2: Research the Seiler or Agent You're Negotiating With 125 Step 3: Know What You Are Offering before Meeting with the Seiler 126 Step 4: Walk through the Property 126 Step 5: Build Rapport and Dive Deeper into the Seller's Motivating Factors 127 Step 6: Explain How You Can Help the Seiler 129 Step 7: Frame Your Offer 130 Step 8: Handle Objections Effectively 130 Step 9: Sign the Purchase and Sale Agreement Understanding Purchase and Sale Agreements 133 Parties Involved 133 Description of Real Estate 134 Personal Property Included in the Sale Price 134 Purchase Price and Financing 135 Where Deposits Are Held 135 Financing Contingency 135 Condition of Premises 136 Inspection Contingencies 136 Statement Regarding Lead-Based Paint 136 Occupancy, Possession, and Closing Date 136 Deed Type 137 Marketable Title 137

7 X CONTENTS Adjustments Buyer's Default Clause -^7 Seller's Default Clause ^7 Risk of Loss and Damage 137 Addendums -^8 Broker/Agent Fees ^38 Time to Accept -* How to Get the Money for Your Wholesale Deals Working with Private Lenders 141 What Exactly Is "Private Money"? 142 How Is the Lender Protected? 142 Turning People into Private Money Lenders 143 Finding Existing Private Money Lenders 143 Can You Openly Advertise for Private Money Lenders? 144 Meeting with the Lender for the First Time Working with Transactional Lenders and Hard-Money Lenders 147 What Is Transactional Funding? 148 Hard-Money Lending 149 When You Will Use a Hard-Money Lender in Wholesaling 149 Know the Terms 150 Qualifying for a Hard-Money Loan 150 Locating Hard-Money and Transactional Lenders Building a Trophy Database of Buyers 153 How You Can Leverage a Database 154 You Must Have Software to Build a Trophy Database

8 xi 21 Networking to Find Buyers 159 Strategie Networking Opportunities 159 Networking with Other Real Estate Professionals 162 How to Build Relationships and Stand Out from the Crowd Direct Response Marketing Strategies to Find Buyers 167 Craigsiist, Backpage, and Other Online-Classified-Ad Websites 168 Facebook Real Estate Groups 169 Company Website 169 Lead-Generation Pages (Squeeze Pages) 170 Penny Saver Newspapers 170 Reaching Out to Your Competition 170 Cash Buyers Marketing Your Wholesale Deal 175 Make Sure Your Trophy Database Is Organized 175 Assemble the Critical Information into a Wholesale Deal Marketing Package 176 Call Your Most Serious Buyers First 176 Blasts 177 Text Blasting 177 Voice Broadcasting 178 What If You Have a Deal to Seil but Don't Have a Buyers' List? Classifying, Prescreening, and Communicating with Buyers 181 Classify Buyers within Your Trophy Database 181 The Importance of Prescreening Buyers 182 What to Do When Buyers Contact You 183 What You Need to Know about a Buyer 183 Communicating Property and Training Your Wholesale Buyers

9 Working and Negotiating with Buyers Know the Comparable Sa/es in the Area Have an Accurate Repair Cost Create a Sense of Urgency Common Negotiating Techniques Buyers Use What if the Buyer Thinks You're Making Too Much? Confirm Funding Gase Study How You Profit: Selling a Contract What Does It Mean to "Seil a Contract"? Completing the Assignment of Real Estate Purchase and Sale Agreement How Do You Get Paid? Coordinating the Closing Common Questions Which Is the Better Exit Strategy: Selling a Contract or Double Closing? Common Misconceptions about Wholesaling How You Profit: Double Closing What Is a Double Closing? Signing the First Purchase and Sale Agreement on the A-B Transaction Signing the Second Purchase and Sale Agreement on the B-C Transaction Know How the Buyer in the B-C Transaction Is Planning on Funding the Deal before You Sign a Second Purchase and Sale Agreement What Else to Look for from Your C Buyer Don't Pass Funding Through Always Have Legal Counsel The Real Estate Closing Process Who Handies the Escrow and Closing? What Is Required to Open Escrow?

10 xiii Who Selects the Escrow Company? 213 Are You Opening One Escrow or Two? 213 What Happens during Escrow? 213 How Do You Prepare for Closing? 214 What Can Cause Delays during the Closing Process? 215 What to Check the Day before Closing 216 What Takes Place at the Closing? 217 How to Ensure There Are No Snags the Day of Closing 217 Hiring Someone to Help You Process Your Wholesale Deals Building Your Local Team 219 Real Estate Agents 220 Locating the Top Agents in Your Market 221 Hard-Money Lenders 222 Mortgage Brokers 222 Insurance Agents 222 Title Agent/Real Estate Attorney 223 Contractors Building Your Business Advisory Team 225 Real Estate Coaches 227 Marketing Mentors 227 Negotiation and Sales Mentors 227 Business Management Mentors 228 Legal Mentors 229 Tax Mentors 229 Mastermind Group The Path of Smart Growth 231 Preparing for Growth 231 Managing Your Time 232

11 XIV CONTENTS Developing Systems 232 Growing at a Sustainable Pace 233 Integrating Technology into Your Business Management Systems 233 Hiring Employees and Scaling Your Business 234 Constantly Improving Your Leadership Skills 235 Index 237

Wholesaling Step by Step. Edward O Daniel

Wholesaling Step by Step. Edward O Daniel Wholesaling Step by Step Edward O Daniel Agenda Marketing for sellers Taking seller calls Analyzing deals and making appointments Handling the paperwork Getting PAID!!!! Goal of this call My goal for this