{“en”:”How to Wholesale Real Estate Step by Step_ Real Life Transactions Hi, this is Neva at Timeforinvesting.com. Today Iufffdm continuing my segment on going over a couple of transactions that I worked on answering these four questions: How did I get the lead or find the property? How was I able to help the property owner or to motivate them to sell? Or how to find the cash buyer? And what was the crazy thing that happened? This one was a property ufffd how did I find the lead? I found the lead, I actually called the property owner and asked him if he was interested in selling. At that time I think I probably called a couple of hundred and finally I found somebody who said, ufffdYes.ufffd So calling is a good technique but you have to be willing to call a lot.
I would say Iufffdve definitely called like a thousand people so far ufffd so I call a lot. I havenufffdt called in a long time but when I was calling it was a lot. It took me a full year to get somebody that says, ufffdYes.ufffd So thatufffds a way ufffd a marketing method as well. Two, so what was the motivation for the property owner to sell? In this situation the property was tenant-occupied and his requirement was that we closed on the house with the tenant in the house.
The issues deal was that the tenantufffds rent was like the average rent probably in that neighborhood would be like $3,000. And if I can remember correctly she was paying like $600. It was like something really, really crazy because it was like a family member but then you know youufffdre kind of stuck because then you canufffdt evict the family member. So she had been there like forever and he was just kind of like, youufffdve got to buy ufffd you get her out type of thing. Youufffdll find though that when the rent is that low that even still the cash buyers are going to be kind of hesitant sometimes to close with the tenant in there because then theyufffdre also going to have to fight to get this tenant out as well because you canufffdt really buy a property and then raise rent from $600 to $3,000. I really think that this person isnufffdt going to be able to pay it. So you kind of know, whoever buys it knows theyufffdre buying this headache.
So in this situation what I did, I said, ufffdOkay, weufffdll close with the tenant,ufffd and what I did, I negotiated for us to close with the tenant and then we held back. The title company held back, I think it was $5,000 or something like that. And what that does is they hold it until the tenant leaves. So itufffds kind of like it helps the seller to also help us get the tenant out. And just in case we canufffdt get this tenant out then that money is used to actually start the whole court process and eviction process, and things like that so that the cash buyers donufffdt have to use his own money to get the tenant out. So thatufffds what I used in that situation to get around that issue that heufffds saying, ufffdHey, I definitely need you guys to close with her in the house.ufffd So this is a situation where itufffds definitely a good transaction for a cash buyer because a traditional person is not going to want to buy the headache of going through this knowing that if you want the property youufffdre going to have to evict someone.
Itufffds a great opportunity for us but I think you just have to be always be aware that youufffdre always trying to kind of problem-solve things so donufffdt just give up when things like this happen. So once Iufffdd negotiated that then I had a lot of cash buyers that were interested in buying the property. How did I fund the cash buyer that did buy the property? Actually, by the time I got this house in the contract I had like a really large buyerufffds list. But it just so happened the guy that purchased it, heufffds actually the first cash buyer that ever gave me his card and I got his card at a Rio meeting. I was at a Rio meeting, they used to let us ufffd they still do, you put these stickers on saying like if youufffdre a wholesaler, if youufffdre a rehabber.
And so what they say is if youufffdre a wholesaler then you should be making sure that youufffdre networking with a rehabber because the rehabber will be buying what you get on the contract that you make to wholesale. It helps the right people to network with each other, and so he was the first person that I have build myself up to, to go to ufffd I think at that time I hadnufffdt wholesale anything. I just had like the sticker, I was like trying to claim it and say, ufffdIufffdm wholesaler, I need a cash buyer.ufffd And he gave me his card.
So it worked out because I probably wasnufffdt able to actually get him a property ufffd Iufffdm sure like a year or two had passed but it was great that I still had him on my list and he bought the property. So thatufffds how I found the cash buyer. And then my last question I always answer is, ufffdWhat crazy happened?ufffd So what happened on this one was we got ready to close. Weufffdre ready to close, and this property was actually it was owned – it was free and clear but when we got ready to close it was showing that there was like outstanding loans from 1980 something and the owner was like, ufffdI donufffdt remember ever taking out a loan.ufffd He didnufffdt have the papers stating it was paid off, or what was going on. And then, the issue was because the loan was so old, excuse me, the original bank and the bank that it was now was I think it was like five, six companies it just had been sold. And if you ever work for a company and they merged, and you know that when companies merge they donufffdt really merge their systems.
They just slap the new company name on, and they keep the systems separate. So then Iufffdm like calling, and calling, and calling trying to find which section of the bank now has access to those old accounts. So that was taking me days. I even at this point this title company, they sent someone because we couldnufffdt ufffd the bank couldnufffdt even find the loan to say if it was paid off or it was on. It was just literally saying, ufffdWe canufffdt find,ufffd every time we reach someone they were like, ufffdOh, I donufffdt have access to loans that old.ufffd So finally we were able to find it and it turns out that the loanufffds paid off like the guy said because heufffds saying, ufffdI canufffdt even remember taking out a loan.ufffd And it was for a tiny amount, and it was paid off but the bank never went back and released that lien when he paid it off so thatufffds why it was still there.
So they released it and then we were able to close. So thatufffds why Iufffdm saying. Itufffds things like that that you have to ufffd until you get to the closing table and everything is final, you have to monitor and be prepared to jump-in and solve some issues because more than likely, like I said, somethingufffds going to happen because at least for me I remember when I first started, my mentor at that time, Tom Z., he was saying that, ufffdSomething always happens.ufffd And I used to think, ufffdOh, Iufffdll just make sure Iufffdll dot all the Iufffds, cross ever T,ufffd but even that is just out of my control that something just always happens, somebodyufffds calling me which is something crazy so just be willing to jump in and work.
Because if I donufffdt jump in and be the person calling, and making sure somebody finds this loan and get the release then weufffdre not going to close and the whole, entire thing is going to fall apart. And I donufffdt want that for the seller and I donufffdt want that for myself. So thatufffds my tip for this week and Iufffdll go over this again, those four questions: How did I find the lead? I called. What were their motivating factors? And also, this house needed a lot of repairs, the site also that the tenant is in there, it also needed a lot of repairs two. And three, how did I find the cash buyer? I found the cash buyer at a Rio meeting.
And four, what crazy happened? There was this old lien that we had to make sure it was released on the property. So continue to send me your questions and any other thing that I could tell you thatufffds helpful on my wholesale deals. Let me know those questions as you have. But these are some of the common questions that Iufffdd been getting that I thought if I answered, and actually gave you examples it would be more helpful. So Iufffdll see you ufffd like I said, Iufffdll try to do two videos a week so Iufffdll see you next video.
And remember to subscribe! Bye, bye.. “}