During this session, we will talk about Property Sales | Properly packaging your properties and effectively marketing them can be the difference between small and big checks. The video is below and the notes are underneath the video. This is Week 7 of 10 from the Wholesale Real Estate Training Program. Make sure you bookmark the Wholesale Training Resource Center.
VIDEO
NOTES
WEEK SEVEN NOTES AND ACTION ITEMS
During this week’s Wholesaling in Real Estate session, Tim pulls back the curtain and literally walks you guys through his process of acquiring, valuing, and listing investment properties. His way of doing things provides him with an average of $20,000 per deal, where most wholesalers are settling for $3,000-$5,000 or even less! What investors want is for you to do the legwork for them and present them with everything they need to know to make a decision to buy from you. Just an hour or so of marketing prep on each property can give you a much larger profit margin, so be sure to listen in to find out how Tim does it.
• ([3:30]) Introduction to the Garland investment property
o Review contract from the acquisitions team
o Familiarize yourself with the asset
Run your own comps in MLS
• 10-year bracket surrounding the year built
• +/- 10% of square footage
• Start with that subdivision and expand out if necessary
• ([14:16]) Use Excel to do your own quick appraisal
Use your comp averages and maxes
o Pare down your comps
Read the descriptions and filter out any troubling phrases
• “Well-maintained” means it hasn’t been updated
Flip through the photos
• Consider what has had rental repairs vs. retail repairs
• Take note of the ones that have been flipped
• ([23:33]) Think about the needed repairs
o Scroll through photos from acquisitions team
o Talk to acquisitions team
o Plug in your square footage and repairs need to the Rehab New Numbers spreadsheet
• ([32:40]) Know what you can sell the house for
o Use the Offer Calculation spreadsheet and the Rental Calc Shared spreadsheet
o What will it cash flow for?
• ([38:10]) Play with the numbers
o Work on the Retail Net Estimate spreadsheet
o Think about who you could sell it to
Investors like it when you use specific numbers
• This means you have done your homework and you’re less flexible
o Determine your asking price
o Lay out your marketing
ARV, Rehab for 90%, 87.5%, 85%, 82.5%, and 80%
• ([49:47]) Understand the reasons why the acquisitions team paid more for this house
o Location in Garland
o Built later than 1980
o Strong rent comps
• ([51:26]) List on InstantEquity.com
o Make sure you take good photos from the street
o Present the property so the end buyer will see the value
o Insert your YouTube video link to the listing
o Have a wholesale phone number – Tim uses CallRail
o Write the description
Tell the investor what they want to know
• This will cut down on needless conversations
Include your RealAVM and Zestimate information
Let them know what work it needs
Include the address
Tell them the estimated ARV, estimated rents, estimated rehab for flip, estimated rehab for rental
Give them an exact asking price and specify cash, bank, or hard money only
Tim uses a disclaimer regarding the assignment of the contract at the end
• ([1:21:15]) Get the word out
o Use ClubTexting to immediately point people to your new InstantEquity.com listing
o Email out via MailChimp when you have at least 2 new listings
10:00am-2:00pm on a weekday (especially Tuesday or Wednesday) is the best time
o Give them the big 3:
What’s it worth?
What’s it need?
What can I get it for?
Resources
Online Sales Training https://www.sandler.com/
http://i-rei.com/ (Comp provider)
tim@timherriage.com https://twitter.com/timherriage https://www.instagram.com/timherriage/
https://www.youtube.com/c/TimHerriage
https://www.facebook.com/timherriage/
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