Flip This Wholesaler

6/22/2009

So, I spent the weekend working on an ebook that I intend to have ready shortly after my new blog is up and running (which should be the middle of next month). Initially, it was going to focus on building a buyers list for wholesale deals, but once I started writing it, I found that there was a lot more information that I wanted to put in the book.

I probably get 100 emails every week from readers of this blog, as well as readers of the REI forums that I participate on (Flippinghomes.com, BiggerPockets.com, REIClub.com). Most of the emails are questions about the process/mechanics of flipping REO properties, building a buyers lists, how to get started, etc. On average, I probably spend 2 hours/day answering emails, and after a year or so of doing this, I feel like I have a pretty good grasp of the questions most beginning investors have when it comes to getting started wholesaling REOs.

Over the weekend, I went through all of my old emails and private messages from the forums, and came up with a ginormous list of questions that I have been asked over the last few years. I plan to address all of these questions in the the ebook (and then some), but I also wanted to get some feedback from you guys to see if there's anything I missed.

What are the questions that you want to have answered? What are you most confused about when it comes to the process of wholesaling REOs? If you've already bought a course that teaches you how to flip REOs, was there something missing that you wish was included in the course?

I'm going to post the list of questions that I came up with (it's kind of long). If there's something I missed, please let me know. I would appreciate your feedback..

(1) What is an REO?

(2) Where do you find REOs?

(3) Do I need access to the mls if I want to wholesale REOs?

(4) How can I get access to the mls?

(5) How do you know which properties are REOs?

(6) How can I search for REOs once I get access to the mls?

(7) How do I find a realtor to submit offers for me?

(8) Can I use my own contract when making my offers?

(9) Which contingencies should I use when making offers?

(10) It says in the listing that I need a proof of funds letter to submit with my offers, is this true?

(11) Where can I get a proof of funds letter?

(12) Can I use a letter from a transactional funding source to make a cash offer?

(13) How do I choose which properties to offer on?

(14) Do I need an earnest money deposit to submit with my offers?

(15) I read on your blog that you got started when you were broke. How did you get around the earnest money deposit?

(16) I plan on making multiple offers on REOs, do I have to supply an earnest deposit with every offer?

(17) How soon is the earnest money check deposited once my offer is accepted?

(18) What if I can’t find a buyer? Do I get my deposit back?

(19) How do I decide how much to offer on an REO?

(20) What is the best way to learn what a deal is in my market?

(21) I made an offer and haven’t heard anything back. How long does it take for the bank to respond?

(22) The bank is asking for highest and best, what does that mean? How high should I go?

(23) The bank rejected my offer. Should I make another offer on it down the road? If so, how long should I wait?

(24) I plan on making a lot of offers on REOs, what’s the best way to keep track of them?

(25) My offer just got accepted! Now what?

(26) What’s up with this 40 page addenda? Do I have to sign it?

(27) When should I start marketing for a buyer?

(28) What are the top ten ways to build your buyers list?

(29) How do you prescreen your buyers to know that they are for real?

(30) Should I get a deposit from my buyer? If so, how much?

(31) My buyers are asking me how long I’ve owned the house. What should I tell them?

(32) What if my buyer tries to go around me and cut me out of the deal?

(33) What if my buyer finds out the property is listed on the mls for less than what I am selling it for?

(34) How do I get my buyer inside the property to view it?

(35) Can I assign my contract to my buyer?

(36) If I can’t assign the property, how do I sell it to my end buyer?

(37) My realtor told me simultaneous closes are illegal, is this true?

(38) The addenda says I have to use their title company to do the title work, is this true?

(39) I see that you are closing your REO deals at your title company. How are you able to do this?

(40) What is the best way to find a title company who will do a simultaneous close?

(41) What if I can’t find a title company who will do a simultaneous close?

(42) What is transactional funding?

(43) What are the fees involved?

(44) Will they fund the deal if I do not have a buyer?

(45) Should I tell the listing agent/bank’s title company that I am flipping the property?

(46) What happens if my buyer backs out of the deal the day of closing?

(47) I plan on making multiple offers on REOs. What happens if they all get accepted?

(48) I read on your blog that you do joint venture deals with other wholesalers. How do you find wholesalers to work with?

(49) How much do you get paid on a JV deal?

(50) What contracts do you use?

(51) How do you ensure that you are going to get paid?

(52) How do you prevent other wholesalers from stealing your buyers when you do JV deals?

(53) Do you make your offers in your personal name?

(54) Why do investors need me when they can just go on the mls and get the deals themselves?

(55) My brother told me that everything on the mls is picked over. True?

(56) I want to be a successful REO wholesaler. What do you think is the most important step in making that a reality?

(57) What formula should I be using to make my offers? What formula do you use? How much should I offer?

(58) How can I structure my offers so they are more likely to be accepted by the bank? What kind of offers are they looking for?

(59) How do I pick which properties to offer on? What do you look for when you are picking properties to offer on?

(60) What is the average DOM of the houses you put under contract?

(61) If you were starting over with no cash and no credit, what steps would you take to set up your REO wholesaling business?

(62) Do I have a better chance at getting my offers accepted if I make the offer directly through the listing agent?

(63) What is the average discount off of list price that you get?

(64) Should I ever offer full list price?

(65) What is your average profit on your REO wholesale deals?

(66) How many offers does it take for you to get a deal?

(67) Do you ever make blind offers? If so, how do you decide what to offer?

(68) I just listened to a webinar that suggested I make hundreds of blind offers at once just to see if anything sticks. Do you think this is a good idea?

(69) I’m confused about the steps involved in flipping an REO from start to finish. Can you walk me through a deal?

(70) Can you give me some numbers of some of the deals you’ve done?

(71) How long does a deal usually take from start to finish?

(72) I’ve heard that the bank’s title companies suck. Is this true?

(73) How can I get the bank’s title company to hurry the hell up?

(74) I plan on putting properties under contract and using a weasel clause, and then backing out if I can’t find a buyer. Do you think this is a solid plan?

(75) The listing agent is telling me the bank wants 10% in earnest money. I don’t have it. What should I do?

(76) I’ve made over 500 offers and I haven’t gotten one accepted. What am I doing wrong?

(77) I heard that I can’t flip a Fannie Mae property for more than a percentage of the purchase price. Is this true?

(78) Can I wholesale an REO to someone getting a conventional loan? Why not?

(79) An agent is refusing to submit my offer because it is too low. Don’t they legally have to submit the offer?

(80) I’m trying to submit an offer on a Countrywide property, and they are saying I need to be prequalified with CW even though I have a prequal from my hard money lender. What can I do?

(81) I read on your blog that you use bandit signs to sell your deals and find buyers. What do you write on them?

(82) Where do you get your signs, and how much do they cost?

(83) How many signs do you usually put out at once? Where do you put them? Don't you get fined for putting them out?

(84) I read that you find buyers by calling "for rent" signs. Is there a script you use when you call? What do you say?

(85) I see that you live in Tampa, FL. What the hell is up with all of the real estate gurus there? Is there something in the water? Good grief.

(86) Does Watson Title really suck that badly?

(87) I read on Facebook that you have a Helper Monkey. Where can I get one?

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OK, so that's what I have so far.

What do you think? What am I leaving out?

What is it that's holding you back from wholesaling REOs?

Any input is appreciated....

Speak now or forever hold your peace!