Wholesaling Real Estate in 21 Days

Introduction

• Speaker: Alex Martinez, CEO and Founder of RealEstateSkills.com
• Objective: To teach how to start wholesaling real estate in 21 days or less without spending on marketing and without needing lots of experience.
• Achievements: Generated over $12 million in revenue in the first year.

What is Wholesaling Real Estate?

• Definition: Acquiring a property under contract at a lower price and selling the contract at a higher price to a cash buyer.
• Example: Buy for $100,000, sell for $110,000, make $10,000 profit.
• Ways to Close a Deal:
  • Assigning the Contract (99% of deals): Transfer contract rights to another party.
  • Double Closing: Close on the property with funds, then resell.

High-Level Wholesaling Process

1. Find a Distressed Property:
   • Look for properties in poor condition and sellers in distress.
   • Distress factors: Foreclosure, divorce, inheritance.
2. Get Property Under Contract:
   • Secure below market value to ensure profit.
3. Sell Contract Rights to Fix and Flipper:
   • Average wholesale fee: $10,000.

12-Step Process to Start Wholesaling

Step 1: Pick Your Market

• Start locally to leverage local knowledge and build easier connections.
• Virtual wholesaling is possible but start local if you're new.

Step 2: Find 3-5 Cash Buyers

• Target active buyers, preferably fix and flippers buying multiple houses monthly.

Step 3: Finding and Filtering Deals

• Use the MLS, Redfin, Zillow, or Realtor to find distressed properties.
• Strategies:
  • Day Zero Strategy: Focus on newly listed properties.
  • Old Listing Strategy: Target properties on the market for 60+ days.

Step 4: Make Discovery Calls Daily

• Call listing agents to build rapport and gather property details.
• Present yourself as a real estate investor, not just a wholesaler.

Step 5: Analyze the Property

• Calculate ARV (After Repair Value), repair costs, wholesale fee, and offer price.
• Use a basic formula: ARV x 70-80% - Repairs - Wholesale Fee.

Step 6: Call Back the Real Estate Agent

• Discuss and negotiate offer price.
• Aim for listing agents to represent you to earn double commission.

Key Strategies and Tips

• Importance of Speed: Quickly analyze and act on deals to outpace competition.
• Building Relationships: Establish trust and rapport with agents.
• Contingency Clauses: Always include inspection contingencies for flexibility.
• Local Knowledge: Use familiarity with the area to your advantage.
• Professionalism: Clearly communicate offer terms and maintain professionalism in all transactions.

Conclusion

• Use these steps to start wholesaling real estate efficiently and effectively.
• Aim to close deals with a profit while maintaining strong relationships with all parties involved.