Got Your First Wholesale Contract? Here’s How to Sell it

What's going on, boys and girls? In this video, we're going to be breaking down step by step what you need to do after you get a deal under contract. As you know, in the wholesale process, you have acquisitions and dispositions. Acquisitions, you acquire the contract. Dispositions, you dispose of it. So we're going to be breaking down the backend after you get the deal under contract. I get many messages on Instagram, TikTok, even here on YouTube in the comment section saying, hey, I got my first deal, I don't know what to do. This is the video for that. If this is the first time you're watching one of my videos, welcome. My name is Jay. I've been wholesaling real estate for the past 7 years, and I make videos just like this to help you close your first deal or scale your wholesale business. Let's get right into the video. Step number 1 is finding the title company. This is the people that are going to help us process this file, process this transaction, and make sure that everything goes by smoothly. We want to make sure that these people are local to the actual seller, so that gives us social proof and the seller has somebody to talk to that is local in their area since we're doing this virtually. In this example, we have one in Granbury, Texas. If we can't find one there, we'll go out to a different city that's near Granbury so the seller can also feel safe. What you're going to say on the phone is say, hey, this is Jay. I was reaching out to see if you guys work with assignment of contracts. I have a signed purchase and sale agreement, and I'm waiting offers from end buyers. Would you guys be able to help me out with this transaction? If they say yes, great. Ask for the title officer's email, send them the PSA, confirm that it'll work with them. And then you also want to make sure that they work with assignment of contracts, they work with wholesalers, they do blind HUDs, all the above. Now these people have to be on your side, otherwise it'll make or break the deal. If they say no, move on to the next and you'll be good. Once you have a title company ready to go, it's time to build the DISPO package. In this example, this is one that was in my Google Drive. You can see the front picture of the property, you can see contact contact, in this case would be Jay, with my phone number to make an offer. You have the property address, the bed bath count, the square footage, all of the questions that buyers are gonna ask normally in the phone conversation. You wanna send over this file, get all of those answered to avoid the back and forth. Let me give you a quick look at this. You can see why you need this deal, a small ChatGPT, uh, little essay or a little paragraph on why this would be a good deal. The asking price, the resale value, the ARV. You also want to include the comps. If there's no comps, there's no real legitimacy to why you're asking the price that you're asking for. You want to have the drive or the Dropbox, whatever you're using to collect all the pictures of the property from the inside and outside. That way they can see kind of what the gist is before actually going to walk the property. You also want to say, hey, is it vacant on lockbox? Is it pending on walkthroughs? Right? Do you need to get access from the seller? All the logistics on actually getting a walkthrough of the property, having them bring out their inspectors and do their final inspections before actually signing an assignment agreement. All of this, of the above, you're going to send over in a disco package to look professional. You don't want to be that guy sending out mass essays through text of, this is the deal, this is the address, these are the comps. Nobody wants to look at that. It looks unprofessional. You look like a beginner. Start using a disco package and you're going to get way more responses from buyers because it just looks good, right? At least they'll tell you no. Next, when we're talking about buyers, Facebook is a great way for you to lose your deal if you're doing the wrong thing. This— let me give you an example. In this case, this guy named Hassan posted this deal on Facebook. This looks like every single other wholesaler. All the pictures make the property look like shit. It's not organized at all. The description sucks. This guy's saying, who's buying in Crandall, Texas? Who's going to click on this? Who that, you know, is maybe a new investor, maybe is scared of big rehabs, is going to click on this or be interested or send this guy, Hassan, a private message? Probably no one. You want to somewhat catfish the deal to get people to actually respond, actually click on it, actually send you a private message. So don't do this. What you want to do is have this as a description. Good quality pictures, 3 to 4, don't overdo it. The price point, the ARV, the estimated profit, the zip code, the bed, bath, count, square footage, and closing date. Make sure you put only looking for cash buyers, no JV, no creative financing, and PME for more information. You want to have this description copy and paste. Don't add too many pictures, and I would recommend you don't add the front of the actual property because then, as you know, most of the sellers in our age range are between 30 and 70. These are the people that are on Facebook. They're not on TikTok, they're not on Instagram, they're not on YouTube, they're on Facebook. So if they see their property on Facebook Marketplace, it's not going to be the best, especially if it's the front of the house. That's easy to tell. The inside can get a little bit more confusing and you don't even know if it's your property. So I recommend don't do the front of the house. Now, as far as Facebook buyers, I cannot emphasize this enough. You want to vet these people like your life depends on it. Facebook is the home of all the wholesalers that that want to act like investors, all the investors that want to wholesale deals, and all the daisy-chainers that never close deals because they can't do anything, right? Be very picky with the people from Facebook. Many times it's a new Western agent or another wholesaler trying to take your deal, so vet like your life depends on it. Don't text through Messenger. Hold conversations over the phone, and I'm going to show you exactly what to say. It is right here. Hey, this is Jay. I was reaching out to see if you guys are still buying in the zip code. I have a deal here that I'm looking to sell. If yes, Tell them basic details, the price, the bed-bath count. Ask them if it's something in their interest and send over the DISPO package. Have them open it on the call because otherwise they're not going to open it. They're going to tell you, hey, I'm going to reach back out to you. I'll open it later. I'm driving right now. Whatever, whatever. Let them know, hey, the previous investor wasn't open, able, wasn't open, wasn't able to open the link. The link has all the property information, the pictures, the comps, everything that you need to know about it. See if you're able to open that and check it out very quickly. Once they check it out, ask them for a simple yes or no. Is this something that you're interested? If they are, ask about the follow-up call. Ask about them running their numbers, doing their due diligence before they actually walk the property. And if they're super serious, they're going to ask you, when can I go look at it? Now, another way to find buyers— PropStream. It is $100 a month. It is what it is. You got to pay to play, right? You can use the cash buyer tab in this specific market, right? 6-month date range is the filters that I use. You want to go for corporate-owned people. You want non-owner-occupied properties. And you want them to own at least 4 properties. You want people living in the property that they bought for cash. You don't want people that bought a year ago, 2 years ago, 3 years ago. You want people that own at least a couple properties and that are doing deals. Now another good one is Investorbase. Contact the script trace and you're able to see their buyer ranking. If they're a landlord, if they're a flipper, if they're a developer, you can see their little score on Investorbase. And every single time somebody in my program, which I do one-on-one, they reach out to me and say, hey Jay, I just got my first deal under contract, they ask them to send me over the address and I send them over an Investorbase cash buyers list.. And that's most of the time how they find their buyers. Highly recommend it. Shout out to InvestorBase. Another way you can find buyers for your deal that you just got under contract is reaching out to realtors. Now I know, I know, I know, stop screaming, stop rage baiting. Most realtors are idiots and most of them don't know what they're doing, but the ones that do pick up the phone sometimes might have an investor network. So when you reach out to them, you're not going to say you're a wholesaler. You're not going to say you got a deal under contract. This is what you're going to say. Hey, my name is Jay. I'm with whatever company name you want to make up or whatever is on your LLC. We're an off-market investment company here in this specific area. I have a deal that we're looking to pass along to an investor since it doesn't fit our buy box. Do you have an investor in your network that comes to your head? If yes, tell them the basic details, price, net back count, and you get the rest of it. Now you want to emphasize speed to this realtor because they love to waste time. They love to not close deals and be broke, right? So you want to emphasize, hey, if you're not able to find somebody or if there's nobody that coming up directly to your mind right now at the moment, it's fine, I'll call the next Realtor to help me close this deal, right? So you want to emphasize speed with them. And now about actually handling buyers, right? Let me give you some pro tips, and I got some more after this. Make sure to set the expectation on communication with the seller and ask questions to you directly. This is talking about walkthroughs. You never want to get carried away with a buyer being cool on the phone, sounding trustworthy, sounding like, yeah, he wants to build a relationship with you, and then behind your back he goes talks to the seller and undercuts you. You want to have the disclaimer that, hey, I do deals consistently here in this market. I want to build a relationship. Please keep communication with the seller as short and as sweet as possible. Any question that you have about the property, any question you have about the price, please reach out to me directly and let's make this deal happen, right? You always want to have that disclaimer. And even to the seller also, hey, keep communication with my contractor as short as possible. Any questions you have about whatever it is, reach out to me. I'll give you a call after my contractor is done. Never take an offer unless they walk the property already. This is talking about buyers. Buyers will love to lowball you. That is what they do for a living, right? Anybody that you speak over the phone and hasn't walked the property yet, hasn't done their due diligence, do not negotiate against yourself with them. Don't tell them the lowest price. Don't tell them what you would sell it for. Don't tell them what you got other offers for. Don't tell them what you got it under contract for. It doesn't matter. Have them walk the property. Once they do their due diligence or send over their investor or send over their contractor or send over their assistant, Then you can talk about numbers. Before then, you don't have conversations about numbers and you don't negotiate everything. Never take the first offer from an investor. Normally it will come up $5,000 to $10,000 within a couple days, right? Whatever first offer they give you, as I told you already, they are low ballers. That is what they do for a living. Think about wholesalers and multiply that times 10. That first offer will not be their last offer, especially if they actually want the deal. Make sure EMD is in the door maximum 1 day after assignment is signed. So once they walk the property, Once they say they're interested, once you negotiate, once they sign that assignment agreement, make sure they submit earnest money ASAP, right? You're gonna ask earnest money for wiring instructions from the title company. You ask the title officer, hey, can you send me over the wiring instructions to submit earnest money from my end buyer? They say yes, they're gonna send that over. You send that over to your end buyer and collect a minimum of $3,000 to $5,000. Obviously, if it's a lot, if it's vacant land where it's only worth like $7,000, collect $1,000, $2,000. I say a minimum of $2,000. Any property that's around $100,000, minimum $3,000. Anything over $250,000, minimum $5,000. If they bat an eye about that, they try to negotiate with you, they're probably not serious and they want to back out of the deal. They're probably not going to go through. And one thing you can say to them, hey, I don't think earnest money is a problem if you're actually wanting to fulfill and buy the deal, right? Otherwise, it's not going to hurt you. If you're serious about buying the deal, it's going to be off the asking price. It shouldn't matter, right? Now, pro tip, communication is key with all parties. Not just because you got the deal under contract means the job is done. That means the job has just started. Now you're on the clock. Set expectations with the seller right and you will be smooth. Don't sell the seller a dream just to get the deal under contract, and then you're stuck having to keep lying to them or having to change things up that you said in the beginning. That discovery call, that offer call is for you to set expectations and build that relationship the right way. The foundation is built in acquisitions to make dispo as easy as possible. If you lock it up too high, dispo will be a nightmare. If you set the expectations wrong, Dispo will be a nightmare. The seller's not going to let people through the door. You're going to waste your time. Don't do it. Don't take no for an answer. And that is for every single aspect of this business and in business in general. Don't take no for an answer. I hope you guys liked the video. I hope that helped out. If you got a deal under contract, use these tips and then send me a text on Instagram @martismendez that you closed the deal because of this video. If you guys want to help, uh, grow the channel, like, comment, subscribe. I'm going to be posting more consistently. And if you want me to help you close your first deal one-on-one, click that first link down below in the description and and let's close some fucking deals. I'll see you guys in the next one.