Wholesale Real Estate | 3 Mistakes Wholesalers Make
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Wholesale Real Estate | 3 Mistakes Wholesalers Make

hey guys welcome back my name is DJ but
everyone called me rehab in high heels and I’m so excited about today because
it’s a new topic about three mistakes that a real estate investor who
specialized in wholesaling can make look I’ve been doing this for five years and
I still make mistakes but I’m grateful for my Falls because all it does
teaches me on my next deal how to overcome any hiccups that I have made on
a previous deal so we’re gonna go ahead and get started but first make sure you
go ahead and click on this to the subscription button little tongue
twister there make sure you click on the likes as well leave plenty of comments
the more comments if I say this again the more come if you leave the more
information I’m willing to share you know this is nothing but a wealth of
information that I want to pour into the next real estate investor you know I’ve
heard several stories hey I don’t wanna get started and I might look just find
me on YouTube or Instagram or Twitter and I’m there and I understand the
frustration I understand you know finding coming through okay you know
what I just digress but as you can tell the more information I provide on this
tape on this video the more information I want to give you so let’s go ahead and
get started on the three mistakes that I’ve made you may you know who else made
so let me pull up my high-tech piece of paper and go over there
so three mistakes is not getting the right ARV what does that mean RV stands
for after repair value and how do you get that you get there from sold
properties based in the area of the property that you’re looking to
wholesale or fix and flip buy and hold you want to make sure that you have
accurate ARV and this will also help your hard money lender if you choose to
keep the property because you are a real estate investor by way of wholesaling so
how do you get your ARV and I’m glad you asked the ARV comes from your square
footage that you find in your appraisal district or local information if you
don’t know how to find it I will show you in another video how to search for
your ARV and make sure that or the square footage about the property so you
are searching for your ARV it comes in accurate okay but if you do not have the
MLS you can go on Redfin Zillow IComps who else are using of course my
appraisal district here in Houston and I come up with an average the
average comes based off the square footage time twenty percent so I like to
give out numbers so let’s say that square footage of this house which is my
house is a thousand square foot I multiply twenty percent so twenty
percent times a thousand gives you two hundred you subtract the two hundred
dollars Jesus two hundred square foot from a thousand square foot will leave
you your minimum of eight hundred now you need to get your maximum you add the
two hundred back to the eight hundred to get the original square footage which is
which is a thousand then you add additional two hundred to get your
maximum and why do you do that here’s the thing you want to make sure that any
comes that’s coming around that’s been sold within that range will allow you to
get your per dollar square foot for your house that’s your whole selling okay so
once you get that that will help you identify one how much you can actually
host sell this property to how much you can get from your heart money lender or
private money lender 3 whenever an appraiser come out they want to
say hey we couldn’t find these particular properties it was so within
the area that you’re looking it you can show proof based on the time frame which
is six months or less and definitely do not cross over major freeways or
railroad tracks to get your comps you can’t find a comp in and then go down
three miles four miles down and get another company it doesn’t work and
that’s what happened to the crash note to self
okay so make sure you get an accurate ARV so let’s say you don’t want to
find an ARV who do you go to next contact your local real estate agent tell them
hey I’m a real estate investor not Wholesaler and you’re looking for the comps
in this area for this particular property
can you help now I believe I have left several marketing tips of building
relationship with real estate agents if not look in my glossary folio of finding
the right real estate agent and I promise you the more real estate agents
more relationship you have they will end up bringing deals to you as well you
bring deals to them as another exit strategy okay so mistake number two
which is do not skip skilled let me say it again
do not get scaled by your motivated seller here’s the reason why I’m saying
that you come in prepared you walk in you know how much your maximum lava
offer to your seller is going to be if they say that the price is too low you
want to listen to them but if you are so eager I mean trust me when I was told
selling with zero months of experience they could have told me two hundred
thousand and I know I did my due diligence and now I’m supposed to offer
them eighty thousand but I wanted to do so bad
you cannot I repeat you cannot go ahead and just say hey I’ll take your offer
because you’re gonna end up making them upset that you could not own up or buy
their property because you are a real estate investor or you cannot find a
motivated buyer because they’re gonna end up calling you back or senior an
email a text message saying hey your deal is too high I don’t want to do
anything do anything with it find someone else and then you gotta go back
to the seller resell them they say no and it’s just a big mess right but what
you wanted to is building up rapport and find out why they want why do they want
to scale or why do they want to increase their price sometimes they have a lot
delinquent taxes on divorce they want to spit 50/50 you don’t know so if you
don’t ask the right questions and the reason why they’re scaling you you know
you’re not really doing justice to the deal and here’s another thing you want
to make sure you have the right tools in your tool belt so if they want a scale
say hey would you be interested in another exit strategy and you know again
there’s so many I mean it’s called creative financing and if they’re
willing to allow you to provide a solve a problem for them then your outcome
would be great because there’s always three wins which is a win for the seller
a win for the end buyer and of course the win for yourself because you did the
job correctly honesty is always the best policy
all right and the last mistake that I’ve made or you have made is not getting a
backup offer let me tell you you get a deal and you’re excited you market you
find an End buyer the End Buyer says hey I want this deal DJ I want what you have
let’s get started and you’re like okay cool you stopped marketing that’s a huge
mistake don’t start
marketing your deal because there’s several reason one one you find an
empire they backed out to you got to start all over again you go put the
money back out there you got a search guy I mean OH or you know here’s another thing the end
buyers said they want to do I deal with you don’t provide the earnest money you
put it in good face because they say hey you know we can go ahead and close in
ten days if you don’t offer the earnest money and then you like well okay don’t
do that I repeat do not do that okay you want skin in the game you want to make
sure that you have the right end buyer and by making sure that you stay on top
of having a plan a B C and D matter of fact until that deal is closed
don’t start marketing when you’re done marketing are done with this deal and
everyone is all happy including yourself use that as a ghost lead and if you want
to learn more about how to create ghost leads look into another video on then
lose that next Thursday yeah I want to speak on how to market and generate
motivated sellers through ghost leads as well in buyers through your ghost leads
it is very simple I mean very very simple so let’s recap mistake number one
make sure you have the correct ARP mistake number two do not get scaled up
just because they want the most money that they possibly can if so tell them
and go to in my list they don’t just say hey let’s go ahead and do business and
mistake number three make sure you have a backup offer it’s so important as a
real estate investor that specialize in home selling to make sure you have
multiple offers on that deal it’s not good till it’s gotten or my favorite
saying is I’d rather have a burden in and then two birds looking at me crazy
okay so thank you so much for joining me today and follow me on rehab high
heels through Facebook Rehab in high heels through Instagram rehab in high
heels through Twitter rehab in high heels to snapchat the list goes on and I
want to give you the best content possible so you can go ahead and do me a
favor if you don’t mind which leave plenty of comments because the more
comments you leave the more information I can provide go ahead make sure you
click on a notification button I love the likes and share please share
please share these videos if you don’t share then you just tell me that you
don’t care about what I’m doing so until then I hope I provided enough
information about the mistakes I’ve made and you will learn from them and I will
talk to you soon see ya


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