3 Wholesaling Hacks Every Real Estate Investor Should Know
Faster, easier, Awesomer…
What am I talking about?
Nope, not the latest automated robot-driving cars… and not the next superhero blockbuster movie…
I’m talking about wholesaling real estate faster, easier and awesomer.
3 ninja wholesaling hacks ⇉
In this quick video, I’m hitting you with:
- A method you should think about using instead of group email blasts and text messages…
- Why and how you should get a non-refundable earnest money deposit from cash buyers…
- And how to “market” wholesale deals you don’t even have under contract—without getting in hot water.
Anyone (any kind of real estate investor) should consider these things—even if “wholesaler” isn’t the primary REI hat you wear. There will likely come a time in your deal-making where one (or more) of these things is useful to you.
So, I expect this’ll be worth your time, and it’s kinda fun, too.
Press play, Grasshopper…
Real Estate Wholesalers: Want to flip your wholesale properties faster, easier and awesomer? Want to increase your cash buyers’ loyalty in your deals with them? Want to pre-sell “iffy” properties before you even have a contract on them?
3 wholesaling “hacks” every real estate investor should know…
Wholesaler Hack #1—Sell Properties Faster with Ringless Voicemails
Most wholesalers use the same methods to let cash buyers know about their wholesale deals. Things like: Group email blasts, making phone calls, sending text messages, courier pigeons, even robocalls… (Btw robocalls suck. We hate them. You hate them. They’re the worst. Don’t do it. )
Awesome investors are using Ringless Voicemails instead, sending messages directly to their cash buyer’s voicemails. So, you can silently send a single message to your entire list of cash buyers at one time, telling them all about your tasty wholesale deal.
No more angering people with disruptive, annoying calls. Zero icky Robocall aftertaste. Their phone never rings! Your property message goes direct-to-voicemail. Easy. Efficient. Awesome. And easily done with services like: Sly Broadcast, Skipio, Just Deliver It, and others.
Pro Tip: Make your message sound personal and real—like you actually tried to call them personally, but unfortunately missed them, so have to leave them a short message about your deal instead. 🙂 (Ringless voicemails aren’t kosher in some areas, so ask around first.)
Wholesaler Hack #2—Get Earnest Money from Your Cash Buyers
A Common Wholesaler Problem: It’s far too easy for cash buyers to quickly step up and snag your wholesale deal, only to flake out or start ghosting you later for some reason.
Solution: Require a non-refundable EMD (earnest money deposit) from your cash buyers! Asking your cash buyers to have a little skin the game really isn’t unreasonable or too much to ask. It just shows that your cash buyer is serious and committed to doing the deal with you.
Cash buyers are much less likely to quickly overcommit or casually walk away from a deal if it costs them a couple thousand dollars to do it, right?
Whether double closing or assigning your contracts, it’s just adding a simple clause in your agreement with the buyer. (You can copy & paste our clause below this video!)
Wholesaler Hack #3—”Pre-Sell” Properties Before You Have a Contract
Yes, you can “market” wholesale deals you don’t have under contract. Sort of. Everyone knows you can’t legally pitch a specific property to a buyer unless:
1. You own it, or
2. You have “equitable interest” (a purchase agreement) on the property.
Right? Right. But what if you “soft pass” the deal to your cash buyers instead? Meaning, you’re not giving them a specific address, or even stating that you have an actual property to sell them right now.
You have a potential property you just want to float by them at a high level and, if interested, offer them “first dibs” on a wholesale purchase if/when you land it.
Awesome wholesalers call this the art of the “Ambiguous Soft Pass.” With this approach, you can measure the possible interest your cash buyers might have on a deal that feels “iffy”—a clever way to learn if some properties are even worth putting under contract.
Just don’t cross the line of selling a specific property you don’t yet (i) own, or (ii) have a legal interest in. You can mention things like:
a) The neighborhood (or general area)
b) General features (size, room, amenities, etc.)
c) A ‘best guess’ on the #’s (purchase & rehab)
d) A likely timeline (if all goes well)
- But don’t mention the address. You can say things like:
“If it pans out, it might be a perfect deal for you…”
- “It’s not been officially signed yet, but we’re in final negotiations…”
- “Based on all this, are you possibly interested if the numbers make sense to you?”
Bottom Line: This is just a friendly conversation with your cash buyer, and really only speaks in hypotheticals. Be clear on that.
Have integrity & do it the right way—ethically, honestly and awesomely.
Buyers like this because they feel like a VIP for being called first. Earn buyers’ respect. Soft sell for the win.
There you have it. 3 ninja wholesaling hacks you can get working on today. Go ringless, grab the clause, and soft sell for the win.
And hey, you can see how our EMD clause fits in here, then swipe & deploy below for using in your own contract. (You’re welcome!) Scoop up the transcript of this video down there, too, while you’re at it.
Ever used any of these wholesaler hacks? Got one of your own worth sharing? Talk to me with a comment below! I’m all ears.
EMD Clause Verbiage:
PURCHASE PRICE. The Seller agrees to convey property to Buyer for the sum of __________________________________ with earnest money in the amount of __________________________________ payable via certified funds to __________________________________.
Earnest money to be held in escrow by seller’s closing attorney.
Earnest money non-refundable to buyer unless title is non-conveyable or physical condition of property changes prior to closing.