Homeowner Pre qualifier
CALCULATE THE VALUE ( AS-IS & ARV )
Comps
Comparable homes, or "comps," are properties that are similar in size, condition, and location to the property you're interested in.
Here are some steps to finding comparable homes:
- Determine the property's location and characteristics, such as square footage, number of bedrooms and bathrooms, and any unique features.
- Search for recently sold properties in the area that have similar characteristics to the property you're interested in.
- Analyze the sold properties to determine their market value and how they compare to the property you're interested in.
- Consider the Property's Condition: Evaluate the condition of the property, including any repairs or upgrades needed. This can affect the property's value and can be factored into the final estimate.
- Consider the Market Conditions: The current state of the real estate market can also affect the as-is value of a property. If the market is strong and there is high demand for properties in the area, the as-is value may be higher than in a weak market with low demand.
- ARV: Look for other remodeled or recently built homes that follow similar characteristics as yours
CALCULATING REHAB COSTS
How to calculate REHAB costs
Calculating rehab costs on a fix and flip deal is a crucial step in the process of determining whether the deal is profitable or not. Here are the steps you can follow to calculate rehab costs:
- Inspect the Property: Walk through the property and make a detailed list of all the repairs and renovations that need to be done. This may include cosmetic upgrades such as painting and flooring, as well as major repairs such as plumbing, electrical, and structural work.
- Get Contractor Estimates: Once you have a list of the necessary repairs and upgrades, get quotes from licensed and insured contractors for each of the items on your list. Make sure to get multiple quotes to ensure you're getting a fair price.
- Add Contingency: It's a good idea to add a contingency of 10-20% to the total estimated cost of the rehab to account for unexpected expenses that may arise during the renovation process.
Remember, accurate rehab cost estimates are essential for a successful fix and flip project. Be thorough in your inspection and get multiple quotes from contractors to ensure you're getting a fair price for the necessary repairs and upgrades.
CALCULATE AN OFFER
How To Calculate A Fair Offer
Making a fair cash offer to a seller is important for several reasons:
- Builds Trust: Making a fair cash offer shows the seller that you are serious about buying their property and that you respect their time and effort in maintaining it. This can build trust between you and the seller and increase the likelihood of them accepting your offer
- Increases Chance of Acceptance: A fair cash offer increases the chance that the seller will accept your offer over other potential buyers. If the seller receives multiple offers, a fair cash offer will stand out and make your offer more attractive.
- Saves Time and Money: By making a fair cash offer, you reduce the chances of negotiations and counteroffers. This can save both you and the seller time and money in legal and negotiation fees.
Doing Your Homework
RESEARCH YOUR MARKET
Before starting negotiations, research the local real estate market to identify areas where properties are selling quickly and where there is high demand from buyers.
ANALYZE THE PROPERTY
Analyze the property to determine its potential value, repair costs, and other factors that could affect the sale. This will help you to determine a fair offer price.
MAKE AN OFFER
Once you have determined a fair offer price, make an offer to the seller. Your offer should be based on the property's potential value, repair costs, and other relevant factors.
SHOW VALUE
Provide evidence and justify the offer: Provide evidence to the homeowner that justifies your low offer, such as the property's condition or the market demand. Be clear about the benefits of a quick and easy transaction without commissions and fees.
COUNTER OFFER
Listen to the homeowner's counteroffer: The homeowner may counter your offer with a higher price or different terms. Listen carefully to their counteroffer and decide whether to accept, reject or make a counteroffer of your own.
NEGOTIATE TERMS
Negotiate the terms of the purchase, including the price, closing costs, and any contingencies. Be clear about what you want and be willing to compromise on some points to reach a mutually beneficial agreement.
Wholesaling Contracts - A to B
YOUR OFFER COMPONENTS
- PURCHASE CONTRACT WITH THE RIGHT LEGAL LANGUAGE
- DEPOSIT or GOOD FAITH EARNEST DEPOSIT IN ATTORNEYS ACCOUNT
- PROOF OF FUNDS FROM HARD MONEY LENDER
DocuSign is a great way to save time via electronic signature. If you have to meet with the seller, request to meet at the property to inspect with a contract in hand. Otherwise, electronic signatures are the fastest and most efficient way to send and receive contracts. This also is the easiest way to get contracts to the title company fast to start the close. Docusign is very user friendly.
If you or your seller is uncomfortable with signing electronically, then you can easily print the contract and mail or meet with the seller.
TIME TO SELL YOUR CONTRACT
TAKE PHOTOS
The more the better! Try to get at least 5 really good images that you can use for marketing the property.
- Front exterior (don't forget the driveway)
- Back exterior
- Kitchen
- Bathroom
- Basement/ Attack
These 5 images will be perfect for a Property Analysis! The backyard along with sheds, porches, guest houses, or any other additions built onto the property will help a lot when presenting properties to investors.
MARKETING YOUR CONTACT
Hopefully you got pictures during your inspection. If you are wholesaling virtually you can ask owner to take pictures for you . If property is vacant you would need to hire someone on facebook (boots on the ground) to take some photos for you .
This will save you and the investor time on making a trip in case they are not interested. I utilize Google Drive to store my pictures. Google Drive offers a free way to store and share with your investors via email.
FIND CASH BUYERS
Attend real estate networking events: Attend local real estate networking events and meetups to connect with cash buyers in your area. These events are a great opportunity to network with investors who are actively looking for investment opportunities.
Join real estate investment groups: Join online real estate investment groups on platforms like Facebook and LinkedIn to connect with cash buyers. You can also join local investment clubs to network with other real estate investors.
Build a buyer's list: Create a list of cash buyers by reaching out to real estate agents, property management companies, and other real estate investors in your area. You can also use online tools like ListSource or PropStream to find potential buyers.
Use social media: Use social media platforms like Instagram, Twitter, and Facebook to reach out to potential buyers. You can also post about your wholesale deals and ask your followers to share your posts with their network.
Advertise on real estate websites: Advertise your wholesale deals on real estate websites like Zillow, Redfin, and Trulia to attract potential buyers.
Email Blasts:
Email blasts can be a highly effective tool for real estate wholesalers when searching for an end buyer. With an email blast, wholesalers can reach out to a large number of potential buyers at once, without the need for individual outreach. Additionally, email blasts can be a cost-effective way to market a property, especially compared to other advertising methods such as print or online ads.
Also Use:
Craigslist, LinkedIn, FB Marketplace, RE Agents, Bigger Pockets
QUALIFY & ACCEPT
90% of "CASH" buyers end up getting a HARD MONEY LOAN
Qualifying an end buyer through a hard money lender before accepting their offer can be a smart strategy for real estate wholesalers. This process involves evaluating the financial capability of the end buyer, as well as their experience in real estate investing. A hard money lender can be a valuable resource for this task, as they are typically focused on providing loans for real estate investments and have a good understanding of the risks and rewards involved.
By requiring potential buyers to go through a hard money lender, wholesalers can help ensure that the buyer has the necessary financing to complete the transaction.
In addition to evaluating the buyer's financial capability, wholesalers can also gain insights into their experience in real estate investing by working with a hard money lender. Experienced investors are generally more likely to have a track record of successful transactions and a good understanding of the market, which can provide additional assurance for the wholesaler.
TITLE COMPANIES
When wholesaling real estate, it's important to work with a closing and title company that is familiar with the process and can help ensure a smooth transaction.
An investor-friendly title company understands the unique needs of real estate investors and can provide specialized services such as double closings, assignments, and transactional funding.
They can also help investors navigate the legal and regulatory requirements of wholesaling.
In addition to providing specialized services, an investor-friendly title company can also help investors save time and money by streamlining the closing process and reducing closing costs.
It's important for wholesalers to build a strong relationship with a reliable and investor-friendly title company to ensure successful transactions and repeat business.
CLOSING DATE
Be prepared: Make sure you have all the necessary documents and paperwork ready before the closing day. This can include the purchase agreement, assignment contract, title report, and any other relevant paperwork.
Communicate with all parties: Stay in touch with the seller, buyer, and any other parties involved in the deal to ensure everyone is on the same page and there are no surprises on closing day.
Confirm details: Confirm the time, location, and any other details of the closing with all parties involved.
Bring your ID and any necessary funds: Make sure you have a valid ID and any funds required for the deal, such as earnest money or closing costs.
Review documents: Take the time to review all the documents you'll be signing before the closing to make sure everything is in order.
Follow up after closing: Stay in touch with the buyer and seller after the closing to ensure a smooth transition of ownership.
Wholesaling Contracts - B to C
YOUR ASSIGNMENT CONTRACT COMPONENTS
- ASSIGNMENT CONTRACT WITH THE RIGHT LEGAL LANGUAGE
- $10k NON REFUNDABLE DEPOSIT or GOOD FAITH EARNEST DEPOSIT IN ATTORNEYS ACCOUNT
- PROOF OF FUNDS FROM HARD MONEY LENDER
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