3 Wholesaling Hacks Every Real Estate Investor Should Know | Awesome REI

3 Wholesaling Hacks Every Real Estate Investor Should Know

16 comments

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

How?

3 ninja wholesaling hacks ⇉

In this quick video, I’m hitting you with:

  1. A method you should think about using instead of group email blasts and text messages…
  2. Why and how you should get a non-refundable earnest money deposit from cash buyers…
  3. 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…

Video Transcription:

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.

ninja-roll

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.

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16 comments
Lee Price

Great EMD clause

Reply
Jacqueline McSwain

Great Idea for cash buyers who think they can just walk away.

Reply
Margi Williams

Another actionable video…thank you for sharing your expertise! Another thing I’d love to see is a discussion surrounding the pros and cons of securing a real estate license for someone who is only interested in purchasing properties for themselves. I understand the benefits of gaining access to the MLS but really don’t want to invest the time in becoming a real estate agent unless its essential to me being successful as a real estate investor. Thanks for considering this topic.

Reply
Ken Spohn

Hey JP, it’s typical in Phoenix for the money to go hard once the ink is dry. That can be $2k-$10k non-refundable immediately. This is where the BIG boys play!!! LOL!
Anyway, if you’re just getting started do everything JP says, he is the man and when you get your first deal under contract …Congrats!!! Don’t be afraid to say it’s $5k non-refundable.
Not only will this give you confidence…it will show others in your area you are the REAL DEAL!
Best!

Reply
    Johnpaul Moses

    Awesome to hear from you, Ken! Been a long time. Thanks for commenting, and hoping things are well, my friend. 🙂

    Reply
Amos Goodman

I have heard of ringlets voice mails but exactly how does it work. Does the local phone company arrange this?

Reply
    Johnpaul Moses

    H, Amos – no, the local phone company isn’t involved at all. Just check out the websites for either of those options I mentioned in the video and I think it’ll make sense pretty quickly.

    Reply
[email protected]

Great tips, thank you for sharing.

Reply
Jasen Hunt

Thanks for sharing. I just finished the 10hr wholesaler course and look forward to getting started. Wanted to know though…If i put in a deposit/ Earnest money with my purchase agreement with a seller with $5-$100 how do I let the buyer pay closing cost?

Reply
    Johnpaul Moses

    @Jasen—little confused by your question. Putting a deposit/earnest money down on a deal doesn’t impact closing costs at all. They’re two separate things. And if I want/need my buyer to pay the closing costs in a wholesale deal, I just make sure it’s in my sell-side contract. Make sense?

    Reply
Elia

Nice Ninja Moves lots of great Information an Golden Nuggets to use in my next Deals Real Estate Deals will be giving the Ringless Voicemails a Shot.

Thank you.
Sincerely,
Elia

Reply
MALIK M

THANKS!!

Reply
Jim Burton

THANKS JP

Reply
Addison Warner

Thank you for sharing those insights and offering new perspectives in creating deals

Reply
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