From The Desk Of Zack

Stick to Your Guns to make Quick Profits by Wholesaling

One of the simplest ways to make money in real estate is to wholesale properties. Wholesaling is a method of investing in real estate wherein a person buys and sells houses to make quick cash. If you can go out and find discounted properties with motivated sellers, you can make money wholesaling. Take action out in the field and get the experience all the books and cd’s can not teach you

Don’t simply go out there and make offers on properties at random. You need to have a strategy going into the deal to make money on the exit when you flip it. Make smart decisions when going after deals, stick to your formulas, and criteria and don’t force the numbers. You have to find deals you can sell to your buyer at a discount.

Make sure that all your deals will have what your end buyers want. You can do this by finding out the characteristics and the types of properties that most people are buying in your market first before making your offers. By arming yourself with this information, it will be easier for you to wholesale the deals you have under contract to specific buyers based on their needs.

The location of an investment property is also very important because it is one of the factors considered by every buyer when they determine the amount of their offer.

Consider that your objective is to find deals not properties. You do not have to close on them to make money wholesaling. Go out there and find the deal and control it. Take advantage of opportunities that others don’t see. Find a niche and focus 100% on that and nothing else. Put the blinders on and don’t let yourself be distracted or pulled in other directions.

I want to leave you with a quote from truly the most successful man in business today Warren Buffet. ” When everyone is fearful, you need to be greedy; when everyone is greedy, you need to be fearful.”

Take a look at this market, people are fearful; they are not doing anything. If you choose to go against the grain, you too will start to see what Warren Buffet sees while most people are paralyzed by anxiety.

 

That’s your tip of the month!

 

 

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After the storms, we will stay strong!

A tornado near Seymour, Texas

Image via Wikipedia

On April 27, 2011 the Northern Alabama region along with several other states experienced a storm like no other. One made of heavy rain, thunderstorms and multiple tornadoes. (Studies have now revealed that over 300 tornadoes touched down April 27-28, 2011.) The worst of the tornadoes was clocked with over 250 mph winds. This Wednesday started off as any normal one for our office; answering phones, support tickets, and doing our ‘daily routine’ as it were. On this day we were also still continuing to answer questions about Zack‘s brand new product, the Automated Wholesaling Systems. A new product unlike any in its path that would teach and help students to do a wholesaling deal on almost any property in any area by one of six methods.

The day started off bright with lots of promise and soon the rain came and with it, a storm that none of us expected. We remember seeing the sky turn black and the clouds rolling in and twisting to build what would later become a tornado not too far from our office. Quickly Zack decided to close the doors and send everyone home to their families not knowing what would come in the future.

We remember rushing home and preparing for the unexpected. Trying to ‘hunker down’ and protect ourselves and our loved ones while waiting for the tornadoes and storm to pass. To try and explain what a tornado sounds like when it is close by or even on top of you, is practically impossible. Especially one with such high powered winds. In some ways it sounds like you are in the bag of a giant vacuum that happens to be filled with water and bits and pieces. Read more here.

The power in many cities went out as soon as one of the tornados made it way past TVA and damaged all of the 90 lines that bring power into our cities. Later we would find out that not just these power lines where hit but also many of the stations and the nuclear plant as well. And many of the citizens of the city would be without power for 5+ days after the storm had cleared.

After the storm cleared, we were in a stage of rebuilding. People went out in search of gas, food, supplies and anything else that they may need to get by for the days or weeks that laid before them without power. Pictures in the paper revealed the absolute devastation that hit our area when we saw not just buildings but complete cities wiped out from the tornadoes.

However the city, the state, and the people here are all not only resourceful but have a kindness of the south embodied in them. Neighbors were helping each other clean up the mess. Strangers came from all around us to come in and help clear debris and damage sustained from the storm. People flocked to the nearest hospitals to give blood. Others donated time, helping hands, food, clothing, bottled water and anything to help out.

The staff here started to find ways to get our support back up as quickly as possible so that we could both inform all of our students and clients that we were ok and continue to support you as well. We fought to get internet through a cell phone and a laptop so that we could stay in connection with all of you, in case it was needed. We were able to find it in the backyard of Zack’s home on his deck. That seemed to be a high point where we could get signal and internet access through our cell phones.

A few staff members got together to keep each other company while waiting for the power to come back. We played games, told stories and tried to keep our spirits up in the tragedy. Then, an even brighter light at the end of the tunnel–the kind words and wishes from many of you. We got emails and voicemails from many of you wishing us well.

On Sunday, many cities and areas began to regain power. Lights were coming back and businesses would soon re-open Monday morning. Slowly we are seeing our city come back to life. And with all of them, we are springing back as well. Luckily all of our staff members, their families, homes, and our office headquarters all made it out of this storm without much damage. There were some close calls, but we made it out.

Now, we are back up in our office and making our way through to forge on and forward. Zack is still coming up with ideas to help all of you through further training, mentoring, products and services. Our team is playing catch up but working fast to make sure that everyone is taken care of as needed and we continue to move forward. Someone on the news recently stated that “like the Phoenix, we will rise from the ashes.” We believe that we are in the same boat. We are lucky to have made it out of all of this without much damage.

The cities and families that were affected by this storm, still need help and donations. If you or someone you know would like to make a donation, please reach out to the American Red Cross to donate. You can text REDCROSS to 90999 and a $10 donation will be added to your next mobile phone bill. You can also donate online here.

More photos on the storm

 

Take care everyone and best wishes to anyone that was affected by these terrible storms.

 

 

 

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CO-WHOLESALING–WHAT IS IT ALL ABOUT?

Due to such a overwhelming interest from a lot of our students in the wake of the launch of the Automated Wholesaling System with Next Step Intelligence, I have decided to write a little article on the art of Co-Wholesaling.

Before we get started with the strategy, let’s first take a look at the common mistakes made when wholesaling. First off, lets get something straight, there is no magic pill or shiny penny that will get you rich quick by doing absolutely no work. You are in the right place, at the right time, with the right team. We must crawl, before we walk, and walk before we run. In today’s market it is important to not be fooled by the hype and the flair that gets thrown our way every day. Always keep in mind that this is a business so we need to get to work. Do yourself a favor and choose one strategy so you don’t spread yourself too thin and get frustrated. Another common mistake is trying too many techniques at the same time. Avoid strategies that produce cash slowly. Focus on making money in the next 30-60 days. You don’t need to know everything to take action. Consider that 80% of your results will come from 20% of your efforts, and 20% of what you implement will make you money. In conclusion the advice I want to leave you with is to focus on taking action that will produce results, there is no magic pill or short cut to success.

Now for the stuff y’all (yes, spending 8 weeks working in Alabama has me talking like a Southern Boy) have been waiting for. The best advice we can give to you is to go out and start Co-Wholesaling NOW. Let’s take a look at exactly how you do this. First, you need to shift your mindset and make friends with your competition. As a wholesaler you should always call on every “we buy houses” and “I buy houses” signs posted all over your market. We call every single one of these signs that we see. I actually keep a legal pad in my car so I can write down the numbers and take detailed notes when I call them. We typically ask them if they have inventory or if they have buyers. We ask what they are looking for, what % of ARV they are paying, what areas of town they are buying in, etc. While we are on the phone with them we also ask them if they have any wholesale deals they are trying to sell. If they say yes, we ask them if they would be willing to let us work on marketing the property to find a cash buyer. We tell them if the deal is right we can close within 2 weeks with cash. (We can do this because we have cash buyers already in place to buy these types of deals in specific markets. Once you identify your competition, you need to find out what they are buying, where they are buying, and how many properties they actually buy vs. how many they wholesale. You also want to make sure that before you take the time to start marketing another wholesaler’s property you need to work out a co-marketing or fee agreement and get it in WRITING before moving forward.

So let’s sum this up by leaving you with the important things to consider when Co-Wholesaling:

1. Make sure you ask what they have done to market the property, is it online, in the paper? You want to avoid the mistake of getting a property marketed by the wholesaler at $100k, and then create a flyer and market if for $110k when typically anyone who receives a property is going to Google the address to see what price it has been advertised at.

2. Work out a fee agreement in writing with the wholesaler. If they net $2500-$5000 less per property but you help them sell 5 properties that is a WIN/WIN.

3. Make sure you have the mindset of hitting base hits: For example $2,500-$3,500 per property is a good fee to earn for doing a little marketing. Don’t try and make $10k and price the deal out of being an attractive and discounted deal just because you want to hit a home run and make big bucks on the first deal.

4. Building relationships with other wholesalers is just as important to your business as having private money and a go-to agent on your team. After you have called them and asked them the questions you need to work with them, confirm their contact information and add them to your buyers list.

Taking action and applying this strategy will allow you to organically grow your buyers list fast. Imaging meeting a wholesaler who has a buyers list of 500, another one with 1,000 buyers, and two more with 500 buyers each. If you add these four wholesalers to your buyers list and send them any deal you have, you would get your deals in front of 2,500 buyers.

 

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Wholesaling Real Estate: The Basics

Hey guys, Zack here. I came across this great blog post that I thought I would share with all of you. It is from an online magazine called Bigger Pockets. It is sorta a dummies guide and break down of the basics of what I do and what we are all about… wholesaling properties baby! Why am I sharing this with you? … Simple, you need to understand the basics and foundations before you can apply the lessons that we teach and the knowledge that you gain. So, here it is:

Wholesaling real estate provides an opportunity for someone to build income with little capital or credit. All it requires is ambition and some specialized knowledge. The more ambition you have, the more money you will make. Wholesaling does not require a real estate license. A license is not required to buy or sell any property that you have an equitable interest in. That interest can be a contractual interest (you have the property under contract) or you actually own or have title to the property.

What is Wholesaling?

A wholesaler in a nut shell puts property (normally distressed property) under contract and assigns or resells the property to another investor. The investors a wholesaler sells to either use cash, lines of credit, or hard money loans. This allows quick closings on properties that sometimes need extensive repairs.

A wholesaler lives off of the idea that price overcomes all objections. If you can sell a property for a low enough price it doesn’t matter what’s wrong with it, somebody will buy it. A wholesaler focuses on developing two things. Finding deals and their network of investors to sell to.

Getting Started Wholesaling Real Estate

Getting started, a wholesaler should normally not ever buy a property. You put properties under contract with a contingency and focus on quickly selling the property for more money to other investors. If you end up not being able to sell the property before you are expected to close then you utilize your contingency and walk from the contract.

A wholesaler is a middle man, and a good wholesaler becomes a very well payed middleman that other investors love. The thing is that if you have a good enough deal under contract, there are other more established investors out there that will be glad to pay cash for it in a matter of days. If you have a house that will sell fixed up for $100,000, it needs $10,000 in remodeling, and you have a contract on it for $55,000, then with a developed investor network you could have an investor buyer for it for $60,000 in a matter of days. You sell it or assign the contract for 60K, you bought it for 55K so you just made $5,000 in a matter of days.”

– Written by Joshua Dorkin

 

Hope you guys enjoyed that, until next time…

Zack Childress

 

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Why buy Real Estate in Huntsville?

Huntsville, AL has been officially named the 2nd largest city in Alabama. Huntsville has grown from 158,216 in 2000 to 180,105 according to the 2010 Census. The Tennessee Valley BRAC Commission states that the 2nd Recruiting Brigade will relocate this year. It will put roughly 700 transfers to the U.S. Army Redstone Arsenal in Huntsville, AL this year along with 782 jobs expected to open. Redstone Arsenal is expected to receive 5,000 positions from the Arlington, VA area, but employ several thousand more locally.

By the time the relocations set forth during the BRAC an estimated 4,700 new people will have been moved to Huntsville, AL due to job transfers. The 2007 Coldwell Banker Home Price Comparison named Huntsville real estate “The most affordable residential real estate market in Alabama.” Forbes Magazine named the Huntsville-Decatur Combined Statistical Area as “The 6th best place in the nation for doing business, and number one in terms of the number of engineers per total employment.”

“Buy a lot in Huntsville,” says Randall Griffin, the CEO of Corporate Offices Trust. Based on predictions of more military-related growth along with talks with Washington officials, Griffin gave that advice in a conference of commercial real estate pros. Griffin states, “The next round of base closings is expected in 2015.” However, another official believes it could be sooner than 2015.

In just the first two months of 2011, over 1,000 houses have sold in Huntsville and surrounding areas. Click Here to see a complete list of the real estate market from 2000 through February 2011. In addition to BRAC, Huntsville Hospital has won the rights to build another hospital in Madison County. Groundbreaking started in December of 2009 and is expected to be complete by February 2012. This hospital is projected to initially employ 300 people. Click Here for the latest newsletter.

 

Until next time..

Zack Childress

 

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