Learn How to Wholesale Properties
Are you looking to learn how to wholesale properties? Well I’m going to show you how I learned how to wholesale and find motivated sellers.
I’ll show you how to find motivated sellers for free
- The County Clerks office
- Driving for dollars
The very first step is finding motivated sellers
When I first started, I would go to the county clerks office and look on the board for pre foreclosures. The county clerk would post the information 21 days before the auction, so you had to go thru and read all kinds of papers to get the owners information.
Well then some company like real-estate foreclosure listing service started putting all that information into a book that you could purchase for thirty five dollars. That made things alot easier and faster. But you still had to call or knock on doors. And I had heard of some horror stories about people knocking on peoples doors who were in preforeclosure. Some getting chased by dogs, knives and guns. That just wasn’t for me! So I stuck to mailing letters. And of course that led to mailing postcards because it was more cost effective. Go checkout Big Yellow Letters, they are really easy to use all you have to do is upload your mailing list. They also have a skip trace feature that you can use for as little as .02 per lead.
So you’ve found a motivated seller
That’s great! Now what do you do? Well hopefully you have set an appointment to see the house. Now you need to find comparable (comps) in the area. You are looking for houses that are similar in square feet and lot size. See if you can find out what houses have sold for in the same subdivision. If you’re not using propstream you’ll need to get with a realtor to get accurate comps. So lets say you have come up with a median market value of $150K. No you deduct 30% which is $105K. So when you go to look at the property you’re going to estimate the repair costs. So lets say it around $30K to repair and bring the house up to market value. So $105k minus $30k is $75K. This is the price that you will sell to an end buyer. So you will have to deduct your fee from the $75k.
Filling out the Contract
You can find several Youtube videos to help you fill out the contract. But you can also ask a title company. Oh by the way you can find a Sales Contract at the TREC website.
– South Texas Home Investors