what's going on everyone welcome back to another video with the School of Hard Knocks I'm James I'm here with Jack we've got a very special guest today Dom does deals he's a real estate entrepreneur out here in Central Texas and he's been wholesaling real estate for the last few years as you can see man we're gonna break it down in this video let you guys know what to look for what it takes to get these good deals and make a lot of money wholesaling properties out here in San Antonio what is wholesaling in your own words and so I know you guys probably hear the whole door whole set and thrown all around investor real estate investor but here is basically what it is basically what you're doing is you're selling the contract right so you're going to acquire a deal and then you're going to sell that deal to an investor that's looking to flip without doing the work so what it does is essentially is you mitigate the work that's being done because you're not doing any work you're basically getting that contract for a good enough price and you're selling to an investor where he's able to flip it through the rehab and both of you guys are able to still make money why are typically most of the properties that go under wholesale they're typically like distressed or they're not you know kind of like super up to date or like remodeled like properties why is that typically the case Okay so great question that primarily is because you can't get loans on these properties right so if properties need work the banks won't Finance on them so what does that mean so since they can't be financed on then cash buyers have to come in and do the work and so once the work's done then you can take loans on them and those type of things so that's why the cash buyers are so great in these scenarios because as you see this property here you can see it has a pool you can see that you know the property is actually in a great Community it's just it probably just needs a little TLC with we call you know I mean a little work yeah and so that's why we talk about the arv right you I know you probably guys probably heard that term that's one of the the terms that's going to be tossed around a lot the after repair value because after this home is rehabbed then that's what it's going to be worth once the flooring the carpet the kitchen's updated because as you guys can see this kitchen is probably 30 40 years old you can see no Granite no updates on it you know you can see the chandelier here this thing is you know off today out of date but as you know like once you come in here and Rehab it you know update these flooring this house can be totally turned around how can just the average person that doesn't really know anything about wholesaling start finding these deals there's tons of properties in Texas there's tons of properties all over the country how do they really go out and find the properties that need work done primarily the first step is going to be driving for dollars right you can get around you can drive you can actually get in your vehicle and drive around and see properties that need work also you can look at properties that maybe that there's not a lot of action there so like they're they're vacant for example like I always tell people this is a little trick too like maybe you get to a property you don't see nobody taking the trash out for a while or you know you may see trash in the front or you may basically you can see that the property has not been any upkeep and so after that what you can do is you can do research on that property to see if that property is vacant if the owner's around you know maybe the owners die whatever case may be now when you were first kind of like getting the wholesaling was there a lot of that for you as far as like properties that weren't listed were you reaching out to uh properties potentially and like did you have any success in finding deals through that yeah yeah yeah so there's that amazing that service you can pay for where they'll basically give you a list of data where you can call people that's when you do the legwork so there's ways to do that too but for a typical person starting off with no money uh no resources the driver for dollar is going to be answered as you scale up and as you you know get in the business then you get into person data and things like that but for the person on Ground Zero driving a dollar see these these properties that need work see these distressed properties and then you get and you get in contact with them and a lot of times you're going to see some of the properties they will be on the market so what you can do is you can get in contact with those agents and those agents will let you know hey this probably is the price here's this here's that you know I mean you kind of go from there when you do find a property that you like and you want to put under contract what does your pricing process look like when you determine like hey this is how much I want to sell it to cash buyer for this is how much I want to make off this property how do you know how how much you can price it for yeah so it's a simple formula that is probably by far the most important piece because if you get the property too high you don't make no money so you have to know how to analyze a property you have to run comparables right so I have to know like this property behind me what I have to do is I have to compare this property to a property just like this if this property next door sold for a certain price in the last month now I can use that as my comparable right so I know after all the rehab is done this probably can go for this this amount right so you finally find that property and you Analyze That hey this is going to be a good deal for you how do you put that under contract okay so yeah you're going to put it under contract under is a standard contract um you know that you use if any resale or property and then you're going to get it under contract with that seller now is there any money that you have to put down in that process uh earnest money you just got to put earnest money down with what the seller usually it's one percent um but it fluctuates this depending on on your on your seller uh sometimes it could be higher sometimes be lower and all that earnest money is it's just to secure that you're serious you know they say have some skin in the game that just means like because you gotta understand there's a lot of people out here wholesaling you know from their couch and they don't you know and so that just lets people know look this guy's serious he's serious about buying the property because once you put on the contract you have to understand that that property is then tied up for a certain period of time uh they cannot sell that property to anybody else why it's under contract with you and that's the most important thing so once you have it under contract that's the most that's the first step the most important step and that's when you can go ahead and get started you know moving on down the line to kind of find your cash buyers and things like that once you have it under contract who do you work with is that it's called a title company is that right so how do you find the title company how do you how do you work with them pretty much yeah so I mean it's finding the entire companies relatively easy there's tons of title companies that work with wholesalers so that's just a matter of getting on Google finding the title company that works with with wholesalers and you'll find that some title companies or more the investor or wholesaler friendly and that's the ones that you want so usually in your local area yeah you're located you want you want to do what you look at some title companies are done online and things like that but me personally I like to work with a title company where I can go there I can talk to them you know I can be face-to-face with them just in case anything goes down so basically like cash buyer there's somebody with a lot of money a lot of private money you don't have to go to the bank basically someone you can work with they want to invest in real estate themselves why should they pay you see they're paying me because I found a property at such a discount I was able to make money and I'm able to save them money so I can always tell people if you get the property at a good enough price the investor is going to make a ton of money once he flips it this property is going to sell to investor for about 235 the arv on it the after repair value is 350 and it's probably probably needs about 30 35 000 worth all in for 270 and you can sell them for 350. awesome so how much would you essentially make off this in a wholesale fee uh so normally you want to do about twenty thousand you know probably do like a twenty thousand dollar wholesale fee on this one there you go 20 000 easy just like that off of one property Dom's been giving us some crazy games so far make sure that you leave us a like And subscribe we got tons of crazy content coming and stick around to the end because Dom's going to put us on how to really find these cash buyers and get you some money like all the different chandeliers in this property yeah hey all right so let's go so don my next question would be you know you've been Wholesale in real estate for the last few years what is the biggest deal that you've done to this point okay so biggest deal I think we did I did a 13 property packet quick backslow net I had a guy right uh ex-military I was able to really connect with him he had 13 properties that he wanted to offload because he wants to go into a commercial business so we were able to uh get that property get under contract and find a buyer and I think the wholesale Simon feeling that was like 150 000. you know we were able to get that thing done and we're doing like multi-million dollar deals like you know on iPhone so I I always make that joke million dollar deal on the iPhone that's one deal and that's one of the most people make in a year yeah you know that's pretty crazy it just kind of goes to show the power with real estate and kind of the wholesaling in general is you know it's a it's it's an unreal game right now it's wholesaling primarily just residential or can you also do wholesome with commercial contracts as well yeah you can wholesale commercial contracts as well I have um we have some few people that worked with we don't I don't do it personally but I know people locally in the area that are that are wholesaling um commercial property it's different it's a whole different Dynamic but to answer your question in in layman's terms yes you can wholesale commercial properties can anybody really get started wholesaling like how old do you have to be anybody can get uh started wholesaling I mean like I was talking to you guys about earlier you have 17 18 year old multi-millionaires uh from wholesaling it's a real thing it's incredible because it's just like most people think real estate oh I'm an agent so I help people buy find their home to buy or like I'm an investor I'll either put money in to build the property up and flip it or I'm just gonna like put money in and get cash flow you don't even have to have a license to do this do you no you don't it doesn't require a license require a license you get started right away you know you've been doing wholesaling for a couple years now what has been the biggest challenge that you face you know we're talking about anybody can get into wholesaling but and it's a simple process but it can all be bells and whistles It's gotta there's got to be some challenge that you face it really comes down to like the entrepreneurial aspect of like you know you had nobody like looking behind you um a lot of things you have to figure out on the go dealing with these sellers building Rapport um getting these contracts learning different tools about the real estate uh running counts I mean it's a lot of things that go into it it's a very simple process but it's a grind is there any challenge specifically that you face just sticking to it learning the business and just sticking to it as you go like because a lot of times things are going to be changing things will be all over the place but you got to get in this business and do what works for you you know what I mean because everyone's going to have different ideas there's a ton of different gurus online telling you how to do stuff but once you figure out what works for you I think that's the key it's basically the learning curve yeah exactly why would you not just want to flip the property yourself like why would you go through the process of wholesaling their real estate yeah I mean there's a few different the primary reason is the liability of property so when you're wholesaling you're just basically getting the contract set up to someone else and you're not taking on all responsibility that's the that's the primary reason the second reason is just funding a lot of times when you're hopping into this stuff you know especially if you're young you don't have the funding to do the rehab you may have the funding you may have the credit you may not be you know stable to do it so you want to do the whole setting to sort of generate revenue and so you can become an actual investor all right guys Dom just showed us basically step by step how to find these homes analyze them put it under contract and basically go get paid by finding a cash buyer and selling it so dumb hey thank so much man for taking us out to this property bro and being able to show everybody how they can get started and start making six figures wholesaling in real estate how can people find you yeah they can find you know IG um Dom does deals for real yeah any wholesalers get into that want to hop into this space you know you may have some deals you need help with you know reach out to me uh I got a network of guys behind me a team that you know we can get deals done so if you guys are out there you're looking to get into this space looking to make some money uh looking to make some moves trust me real estate is where it's at man you guys tap in with me oh yeah thank you guys everyone for tuning in to another video with the School of Hard Knocks James Jack Dom does deals make sure you like leave a subscribe and stay tuned for some bang your content on the way