Transcription
In this video, I'm going to show you exactly how to get your first wholesaling real estate deal in the next two weeks. That's right, I said it! I'm going to give you a step-by-step guide on how to get your first wholesaling deal within the next 14 days.
What's up, guys? Zack in here, Flip with Rick, and in today's video, that's right, I'm showing you how to get your first deal. So before we get into it, before I give you my step-by-step guide on how to get your first real estate wholesaling deal, again, this is like a 500-dollar little mini course in this video. So if you can, please smash that like button and subscribe to get everything that we have here at Flip with Rick.
So let's get into it. You want to get your first real estate wholesaling deal? This is really exciting! My first real estate wholesaling deal changed my life forever. When I was 17 years old, I made $20,000 on my first deal, and it absolutely changed everything for me.
So really, when I get this guide today, I'm actually showing you how to do it now in 2021 because I got my first deal in 2017. Completely different times than we are here in 2021. This is like a guide that I used to get my first deal, and really, if I had to stop everything, I absolutely had no money or maybe one to two hundred dollars, and I actually had to get a real estate wholesaling deal, this is the exact guide I would use to get my first deal in two weeks.
Now, I got my first deal within a month. Now, I'm telling you right now, if you follow this guide word for word and you get the same amount of leads that I recommend, I can almost guarantee you with a 99% chance that you will get your first real estate wholesaling deal.
Now, here's the issue: most people watching this video are not going to do the 100% amount of effort it takes to get their first deal, and that's why they're not going to get it. Now, this video might have a little less views than the average one because I'm telling the truth here. There's a million videos out there on how to get your first real estate wholesaling deal, and they'll tell you something to get you all giddy and hyped up and stuff, but no one is really going to share with you a true action plan.
These are the true numbers of what it's going to take to get your first deal. It's not pretty, it's not sexy, it's not hype. We don't have the Rolexes or the Lamborghinis behind us. This is just me behind the camera showing you exactly how to get your first real estate wholesaling deal. This is from experience, seeing other guys that are absolutely new in 2021 getting their first deal.
So let's get into it. This is nine steps to get your first real estate wholesaling deal. I'm assuming you know absolutely nothing about wholesaling real estate, and your friend, who's really crazy, they're into all these little businesses, just sent you this video. So I'm just assuming you don't know anything about real estate wholesaling.
Again, my name is Zack, and I started real estate wholesaling at 17. I made six figures in high school and quickly turned that into a seven-figure wholesaling business. But what is real estate wholesaling?
So real estate wholesaling, really quickly, because we have little time constraints on this video, I can't go for two hours here. Real estate wholesaling is basically the art of finding a person who's interested in selling their piece of property, their real estate, for a discount, usually for cash.
So remember, if you buy something for cash versus not getting it in financing or getting a loan for it, usually people will take a little bit of a discount just because you're not doing the hassle of inspections. What we're going to do is we're trying to find people who have issues with their properties, and they're wanting to sell it for cash. They want to get rid of it quickly, and they're willing to give you a discounted price on that piece of real estate for something speedy and very convenient, kind of like a pawn shop or a used car place.
Once we do that, what we do is we sell that piece of paper. We get a paper called a contract saying that I, Zack, have a piece of paper here that states that I'm going to buy this property for a hundred thousand dollars, and I sign it, they sign it. You go to www.flippedthework.com for a free wholesaling contract, get that contract. You sell that piece of paper, not the real estate, but that piece of paper to a person who wants to buy it, maybe as a flip or a rental, for more money.
So if they're willing to pay me a hundred and ten thousand dollars for this piece of real estate and for that paper, what I'll do is I'll get an assignment of contract from there. I'll bring that to a title company. Now, this seems a little confusing right now, but trust me, we're going to explain all of it right now.
We're going to bring it to a title company, and that title company will facilitate that transaction, make it all legitimate, check the title, and at the end of the closing, which is basically the end transaction, we will get a check for, in that example, ten thousand dollars. Nice pretty check in your name. Use that to buy whatever you want.
So that is real estate wholesaling, really simply. But this is what you're going to do to actually get that deal because this is the stuff nobody really likes to talk about.
So step one: we are going to hopefully get in our car, our bike, we're going to put our running shoes on, whatever you have, whatever resource or tool you have available for you. We're going to do this. We're going to get in our car, and we're going to drive around all the neighborhoods in our zip code or local city or county.
What we're going to do is look for distressed properties. Distressed properties are basically houses that need a lot of work. My favorite type when I'm actually driving and looking for distressed properties is grass that's super high. Trust me, when you see it, you'll know. The grass isn't just a little high; it could get a cut. It's like, whoa, it's absolutely high!
Honestly, when we're looking at high grass, we're looking for places where nobody's living, that house is vacant, and we want to go find that because when a house is vacant, no one's probably working on the property, and it needs a lot of work.
We'll be driving around, maybe the grass is getting cut or it's not too bad, and there's overgrowth everywhere. Maybe the stucco is cracking everywhere, the roof's caving in, the windows are shattered. Usually, in an hour of driving around town, maybe you can find 30 to 40 of these properties.
What you want to do is when you find a piece of property that looks really bad, that actually looks like it needs a lot of work, and it's just not a beautiful home—it's an ugly house—I want you, for now, if you have no money, to go to a piece of paper or get a voice memo on your phone.
Just either on the voice memo say it in the voice memo or write it down with a pen and paper. Literally, just write down 123 Main Street, the whole address, and go from there. What I want you to do is, within two weeks, I want you to get at least 500 of these properties.
Now, it seems like a lot, but think about it: if you get 20 to 30 an hour, all you really have to do is do 20 to 30 hours worth of just driving around, and you will find it. Sometimes you would do 40 hours, 50 hours, but depending on that, just get 500 properties.
The reason why I say 500 properties is that, on average, to get one real estate wholesaling deal, it takes 200 of these properties. So why am I saying 500 and not 200? The reason I say that is that's the average. So maybe it'll take you 500 to get the deal; people take you four and get the deal.
So 500, there will be no excuses for you not getting a deal doing that. I'm telling you, driving around for that many hours is really annoying, and getting all those addresses down, but getting that, you'll literally get a deal. I'm telling you right now, you will get a deal if you get 500 extremely distressed properties written on a list and you market to them. You'll definitely get a deal doing that.
I can't 100% guarantee it, but 99% chance doing that. I mean, we have never really gone over 250 to 300 without getting a deal in my local market. So around 500 will give you the best chance for actually getting a real estate wholesaling deal.
So step one is going in the car, driving around. Step two is writing everything down. Now we got the 500. Now what we're going to do is we're going to go home, and we're going to go from either 9 a.m. to 5 p.m. Within that time frame, what we're going to do is call our city or our local county's code enforcement office.
Now, what is the code enforcement office? Really quickly, those are the people that go around the city or county looking at real estate or houses or commercial properties, and they try to find properties that have code violations.
The code is basically saying, "Hey, if you have a piece of property, you can't let it go into a disgusting array; it's an eyesore of the city." If you own a commercial piece of real estate, the grass has to be cut within a distance, and it just can't be terrible. Some properties don't do that.
So basically, in that list, you will find a bunch of properties that you were driving for that, for example, have a violation of the code in the city to have really extremely tall grass. Usually, what happens is the neighbor complains to the city, "It's terrible; it's taking down my property values. Can you go hit this person with a code violation?" So they get fined, and they cut the grass.
These people are actually calling the code enforcement. They go out there, they check it, they take a picture, and they're like, "Wow, this needs a lot of work," and it goes on to the code enforcement compliance list.
So what we want to do is call our local code enforcement office and say this specific thing: "Hey, this is the code compliance office." They say yes. Say, "Hey, my name is Zack. I'm actually looking for a list of all open code violations you have for the past month, past year, anything like that."
Basically, ask them, "What kind of list do you want?" Just say, "All active violations." Now, if they don't give you that, and they want something specific, ask for all tall grass, property structure issues, and other issues that will keep the code violation open.
You want the open ones because the closed ones are the ones that already got filed. You want the open ones; those are people that really are taking care of their property.
And then, really quickly, I want you to call the utility department in your city or county. This is a little harder to do, but I think it's really good to do. Call the utility department and ask, "Hi, I'm actually looking for the water shut-off list."
Just ask for that. What's the water shut-off list? They might ask, "Hey, do you have a list of all the water accounts that you have for the utility department that you shut down the water for non-payment?" Maybe they'll say, "Oh, that's the non-payment one; here you go."
Those two lists are all public information. You have a right as a taxpayer to get that information. They might fight you, say, "We don't have that list." They definitely do, trust me, they all do. If the code enforcement office didn't have a code violation list, they wouldn't make any money.
So trust me, they have the list. Call, fight. Worst case scenario, you actually have to physically go inside the code enforcement office. Physically go in there and ask for it. They usually will give it. Threaten to file a FOIA act; you'll definitely get the list.
Now, I'm assuming you might get a hundred or two hundred from both of those lists, so that should bring our leads up to six, seven, or eight hundred, hopefully. If you want to guarantee almost to get a deal, a 99.9999% chance to get that deal, I would recommend you get a thousand leads. That might take a few months to do, so stick to the six to seven hundred.
You're really going to have to put in the hustle, put the pedal to the metal, and really grind it out, but you definitely can do that.
Step four: we're basically going to put all that information that we've written down and all the lists we got into an Excel list. You don't have to pay for Excel; you can use Google Sheets, for example. That's absolutely free. Just make a Google account. If you're watching this YouTube video right now, you already have a Google account, so it's already out there for you, absolutely for free.
What I want you to do is organize all the information, put the property address and all the information for that property address. Once we got a list of 600 plus, what I want you to do is go to your local property assessor site, the property appraiser site for the county. Sometimes you have to do it for the city and search those properties one by one.
I know it sucks. What I recommend, maybe if you're trying to get through it and it's kind of daunting or really annoying or a manual task, put on a Flip with Rick video and listen to it in the background while doing it. Get educated while doing those little manual tasks; it should make the time go a little faster.
If you really don't get entertained, don't listen to me; I'm not the most entertaining person in the world. But put some music on or something like that, and you can get it done.
So just go to the property appraiser, search the property; it should pull up the owner. What I want you to do is just put the owner information in, the first name, last name there, and we got the information we need.
Step five: when we got all the owner information and we got the property information, what I want you to do is we're going to need these phone numbers to market to them. So I recommend, if you absolutely have no money at all, this is the little secret that I did. I went to truepeoplesearch.com.
Just so people heard me correctly, truepeoplesearch.com. Absolutely go there; you get free phone numbers. All you gotta do is put the property address or maybe put the first name, last name, and the city of the property address. You'll probably get one to two phone numbers. Put that in the Excel list, and then you'll have all the data.
It's going to take you a while. Get some Flip with Rick videos in the background while you're watching that and keep getting it done. It's a little bit of a hustle; it's definitely a grind. It's something you can absolutely do. You don't need to do it from a nine-to-five job. This is something you can do from 5 p.m. all the way to 2 a.m., then go to bed, wake up for your 9 to 5, and go there.
You'll be in school, college, anything. You can absolutely do this method. Now that we got their phone numbers, this is where the fun starts happening. This is when we start putting the pedal to the metal.
So what I want you to do is use Google Voice or Mojo Dialer. If you have money, use the Mojo Dialer. Trust me, call three times as fast. From there, or Google Voice, literally call all those leads. What I want you to do when you're calling those leads on that Excel, you probably have to copy and paste it and call it from your phone, but not really the biggest deal in the world.
You're going to say this specific thing: "Hey, is this Mary?" You're going to say, "Yes, this is Mary." Great! This is Zack. I was driving around the area the other day, and I was actually looking at it, and I was just pretty curious about something. Are you looking to sell that property at all?
Then shut up, let them talk. If they say yes, have a conversation. If they say no, take them off the list and keep going to the next one. So if they say yes, we're going to bring that conversation into either four distinct categories to qualify that seller.
We're either going to try to find out their motivation for why they're interested in selling the property, we're going to ask them the condition of the property, then we're going to ask them when they're looking to sell the property, the time frame, and lastly, we're going to ask them what price they're needing to sell the property for.
Once we get those four things, what we're going to do next is set an appointment to actually meet them at the property. Again, if they have the right motivations, we should definitely go meet them at the property.
Before we go meet them, we set the appointment maybe for tomorrow or the next day to go meet the property, go buy it. We're going to go to www.freewholesalingcontract.com, download the free wholesaling contract. It should be pretty easy to fill out from there.
Then what we're going to do is find the ARV, and we're going to find the repairs, and then we're just going to do the max allowable offer. We're going to figure out what's the most I can offer them for this property.
What we're going to do is find out what the after-repair value is. Usually, it's on Zillow, and then you got to do some comparable sales around there. Find what the comparable sales are in the area and find out what the thing is probably worth after the repairs.
We're going to minus off how much the repairs are going to cost, and we're going to multiply that by 70. Again, I recommend you just try to get the property locked up under contract for the least amount possible. But if you have to, you can do that little MAO, max allowable offer formula.
We're going to go meet them at the property with the contract. From there, we're going to talk to them, we're going to negotiate, we're actually going to get the deal signed. We're going to get the property, we're going to get the seller to sign, I'm going to sign, and we're going to try to get it for the least amount price possible.
Then from there, we're going to get the contract signed. Boom! We got our first contract done. That's so exciting!
Next, we got to sell the deal. So let's say we get it for a hundred and fifty thousand dollars, and that's actually a pretty good deal. Next, we're going to go to Facebook. We're going to go to Facebook cash buyers groups for that specific state, area, county, and we're going to find a cash buyer from there.
Again, I have a million videos here on cash buyers, a little cash buyers playlist, so you guys can go watch. But I'm telling you, you can find the cash buyers, find their emails. What we're going to do is contact them. We're going to say, "Hey, we got a smoking deal here in Arizona," or whatever state or county we're in.
We're going to find someone who's looking to flip the property absolutely for free from Facebook or the groups. We can even maybe post it on the Facebook marketplace if the seller allows it. We're going to direct message people who are looking to flip properties in the area through Facebook.
What we're going to do is download an assignment of contract online. We're going to sell that contract. We're actually going to assign the contract for a specific price. So about if I had it for 150,000 and they agree to buy it for 165,000, that means in that assignment, I'm going to make 15,000 in profit.
What we're going to do is have them sign the assignment contract, we're going to sign that contract, and then we're going to bring it to our local title company that is vetted and accepts wholesalers. Then we're going to wait for the closing, and we're going to check for 15,000.
So that is absolutely how to get your first real estate wholesaling deal in 14 days. If you got any value out of this video at all, I really appreciate you guys giving me the support here at Flip with Rick. What I need you to do is smash that like button and subscribe. I truly appreciate it. Have a blessed day!