Joe Homs, a Southern California real estate investor with 40+ years experience, breaks down six steps to close your first wholesale deal: build a network through agents and Facebook groups, find motivated sellers using PropertyRadar or PropStream, analyze deals with Pellejo, negotiate aggressively, identify your buyer type, and assign the contract for a markup with a $25-$50k escrow deposit.
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Imagine this. You've been dreaming about your first real estate wholesale deal, but you don't know where to start. The thought of it is just daunting, and you're wondering if it's even possible. Well, my friend, let me tell you that not only is it possible, but with the 6 steps I'm about to share with you, also achievable. I've been in the real estate game for over 40 years, and I've seen most of it, but I'll never forget the rush I felt when I landed my first deal. And now I want to pass that feeling on to you. Hi, my name is Joe Homs. I flipped hundreds of homes here in Southern California. I have over 40 years of experience. I've been a broker, mentor, and investor, and I want you to like, subscribe, and share this content with your friends. Step number 1, build your network. And that could be as simple as contacting a real estate agent that knows what they're doing. Going to meetups is a great way to build your network. Emailing people that are wholesaling properties. You'll find a lot of wholesalers on Facebook. There are wholesaling Facebook pages where you can sign up and get properties sent to you. Reach out to some of these wholesalers and find out what they're doing. So networking is a great way to get started in the business. Step number 2, find motivated sellers. You're pulling lists from PropertyRadar, PropStream, whatever program you're looking to use and putting it into a text campaign, a cold calling campaign. I'm predicting soon in the future, in the short future, There's going to be like a ChatGPT effort out there where you're just going to let the chatbot interact with potential sellers of property. So, you know, keep, keep going along those lines and you'll become successful. Are you following along? Make sure that you hit that like button and help me get in front of new investors. Step number three: analyze a property. Probably one of the most important steps. Make sure that you know how to analyze property. You can always go on Pellego www.pellejo.com, throw an address in there, and it does it all for you. It analyzes the property for you. It gives you all the numbers. You can change the numbers depending on. What you're looking for. If you're going to do a cash deal, a hard money deal, you can change those numbers. You look at the properties, it does the after repair value, and you can add or subtract the properties that it comes up with, and it'll give you a good idea of whether this property is going to make any money. Step 4, negotiate, negotiate, and negotiate with that seller. And then when you're done, negotiate again. Okay, you're constantly negotiating until you have it in escrow. And there have been times where I will go do a home inspection of the property and see some stuff or find some stuff that I didn't find before, and I'm on the phone negotiating a better price with this seller. So that's really important— negotiate As much as you can. Step 5, find that end-user buyer. Okay, whether it is a normal buyer that's going to buy the place and move in and do a live-in flip, or whether it's a flipper— 2 different, you know, owners of property. Flipper is going to want it less expensive than maybe an owner who's looking to buy it to move in and rehab the property, live in there for a couple of years, and then sell it down the road. That type of buyer is going to pay a little bit more for that property than the flipper would pay. So find that end user, that buyer. Step 6, closing the deal. So most of the time when you're wholesaling, you're going to have a contract, then you're going to assign that contract to somebody else, obviously at a higher price than you have it under contract. So let's say you have it under contract for $500,000. You're going to sign it to a flipper for let's say $550,000, $525,000, whatever it is. And then you're going to ask to put that in escrow. That flipper is going to put the initial deposit down. That initial deposit should be $25,000 to $50,000 and it should also be non-refundable because if they change their mind, you're going to hopefully end up with that $25,000 or $50,000 that that they put in because they changed their mind, not you. And then hopefully you have the contract left, but maybe not because the seller at that point may be frustrated and say, I'm done with this, I don't want to sell it anymore. Of course, this is only a summarized version of each step. It's going— It's going to take time, energy, and most of all, consistency. By showing up every day and doing the work, you're bound to go far. If you need some one-on-one help, book some time with me or comment down below. If you want some more wholesaling videos, click on this video right here. Feel free to reach out anytime. I'm always here to help. Give me one.
