Wholesaling 101 Lead Generation P2

Hello, my name is Joe Homs. I'm a real estate investor. I work with H&M Realty Group, and we're talking Wholesaling 101. In this session, we're going to be talking about the tools that I use. I use a few tools, as you can see on the board here, and I'm going to talk individually about each one of the tools. The first tool that I use, and I've been using PropertyRadar, it's, it's an app and it's also a desktop application. And so PropertyRadar is a subscription app, and what they do is they go down to the courthouse and go into county records, and they get what's called notice of default. So notice of default means that you as a homeowner have not been making your mortgage payments. And so to begin the foreclosure process, The bank actually sends out a piece of paper to a particular county office, the recorder's office, and they record a document that's called notice of default. This basically puts everybody on notice and makes public information that this particular homeowner is not making their payments. Okay, so I hear a lot of different things on how you get leads and stuff like that. This is probably one of the biggest resources that I use. I have been using this for over 10 years. So this is a tool that basically your leads are out there and they're raising their hands and they're saying, I've stopped making my mortgage payment, so please come and talk to me or pick on me or whatever you want to call it. Instead of driving down the street and looking for that ugly house like I hear a lot of people talk about on BiggerPockets, which we will Talk about bigger pockets. I like to do what I like to call a rifle approach, and so I want a specific target that's already raised their hands and said, "Hey, hello, I'm getting foreclosed on, and I may need some help. Come help me." So my approach to them is literally knocking on the door. Hi, my name is Joe. I'm a real estate investor. And I'd like to buy your home for cash. Do you have a few minutes to talk to me? How did you hear about that? It's all public record. I'm sorry that you're having difficulty making your mortgage payment, but I'm here to try to help, see if I can resolve whatever issues you have in your life— divorce, loss of job, death in the family, whatever it is that put them in that situation. That's why you're there. To help them out. The second thing is getting a probate list, and whether it's a probate list or a divorce list or any other resource that's out there, that's kind of really what I'm talking about at this point. So probate lists are another source of public records where people unfortunately have to raise their hands and have said We did not title our property correctly, so now we need to hire an attorney, a probate attorney, to take this through the probate courts and, you know, come out at the end with the ability to be able to sell this property. They could have avoided this entire scenario if they had placed their property into a trust. So as you're sitting out there listening to me, I encourage you to look into family trusts, living trusts. Land trusts, any type of trust where this document basically specifically identifies what's going to happen if you're not around anymore. So you have total control of the property during that time, and then once you pass away, in the document it says these are my beneficiaries, these are the people that I want to have access and the ability to sell my property when that time comes. And it makes it just a tremendously easy transaction to do, on top of saving thousands and thousands of dollars on attorney's fees and court fees that are incurred. So a probate list is just like any other list. So those are the, the people you either contact by phone— probably not do much door knocking on a probate, but a divorce situation. Expired listings, things like that. Those are the lists that I'm kind of talking about here during the lead generation and wholesaling, which we were talking about and I talked about in the first video. Door knocking tags. So I went to a seminar about 4 or 5 years ago where this gentleman had put this entire system together and It was perfect for me in that I was already door knocking on doors. Notice the default doors in specific when I was door knocking. Well, when I went to door knock, if there was nobody home, then I would literally have to come back later. But he decided to put this innovative door knocking tag approach together, and basically what I'm talking about is a tag that looks like a UPS Or FedEx label, and it has the name of the person that you want to contact, and it also has a tag number, he calls it. The tag number that we use is the assessor's parcel number. The assessor's parcel number identifies a particular piece of property by address, by name. It's got all the information you need. So you put the name of the person that you want to contact, you put the assessor's parcel number as the tag number, you peel it off, You put it on the door and I get about a 95% response rate. So they call the number thinking that obviously they have a package to be delivered. Unbeknownst to them, I'm the package. Okay, so at that point in time, I've captured their phone number and I can either give them a call back or actually call them and make an appointment to go out there and deliver a package. I do have a package that I deliver at the door. And then that gives me the opportunity to talk to them face-to-face and try to put a deal together. Great, great tool, especially if you don't like, you know, for whatever reason, don't like talking to people at the door. Just write some tags out, paste it on there, and they're going to start calling you. Okay, MLS Search App. This is a search app for the phone that's tied in directly to the Multiple Listing Service. Okay. This, this app is provided by me, and I can give you the contact information so that you can download it onto your phone. And this app is really, again, a number one tool that you want to use. It's a free app that I provide. You basically press a button, kind of like PropertyRadar, and it tells you everything that is for sale in that area that you, uh, that you're visiting. Uh, it tells you everything that has sold. It tells you everything that's currently in escrow. And so what I use this app for and what I train my wholesalers and my flippers to do with this app is to establish after-repair values. So you go into a neighborhood, you press the button, you're looking at a 3-bedroom, 2-bath, 1,200 square feet. You start to look at everything that's around it that has sold, that is either a model match or very similar to the property that you're looking at. You determine that the after-repair value in this market, you found 3 properties, you've averaged them out, and they've come up to $500,000. And this person that's looking to sell this property is looking to sell it for $350,000 because it's in distressed condition. Is that a great deal? Absolutely. That's a great deal. So that's why I use this app and I train people how to use this app. So that it can establish what the after-repair value. Flipping, wholesaling, it's all a numbers game, but you have to have your numbers right. This app provided by me will help you do that. BiggerPockets and Think Realty. BiggerPockets is probably the bigger website out there that helps investors. If you're not on BiggerPockets, I encourage you to get on BiggerPockets. They have different subscription levels. First off is free. Go on there and you can ask whatever question you want real estate related, and professionals like me all over the United States are on there to help you with whatever question it is. I only answer questions here locally in California, or even more locally in Orange County, because really, what do I know about real estate in New York or Florida or any other place? If it's a basic question, then that's fine, but I target mostly people that are here locally. in my market and help them out. Think Realty is the same thing. They do have a free service as well. They do very similar things. BiggerPockets obviously is probably one of the bigger websites out there. Think Realty is probably right, right, right behind them and catching up quickly. At the end of the day, you're going to need some contracts. You're going to need some wholesaling contracts, and a contract's a contract. It's a contract. I've seen contracts all over the United States. Most wholesalers use the same contract. It's a 2-page contract. The 2-page contract has a date, it has the parties involved, it has the price that's agreed upon, it's got some legal terminology, how long the escrow is going to be, that the seller has to report any adverse conditions with the property, things like that. So it's pretty basic. Okay, and these pro— and these contracts are available. I'm happy to supply them to you. If you're wholesaling properties, this is what I recommend that you use. You sit down with the client, the seller of the property, you do the hard part, which is negotiating the actual sale of the property and the price. Once that's done, you sit down and have a conversation about signing the contract at that price. Once you're done with that, then you take that contract and you go to all the buyers that you know, all those flippers out there, everybody that has cash. If you're wholesaling property, that's what you're going to do. So you've got it under contract for $300,000 and you're going to sell it to a flipper like me for $310,000, let's say. It depends how good of a deal you ended up with as far as how much money you're going to ask for. Average here in California is anywhere between $5,000 and $10,000. I've paid as much as $20,000. I refuse to pay more than that. If you've got a deal that you're making as a wholesaler $75,000, $80,000, you're taking advantage of that seller. And so I don't want to be a participant and a party to that. So that's why I don't do those type of deals. So hopefully this helps you out. These are all the tools that I use. We went over them one by one, and in my next video, I'm going to talk about my personal purchasing rules, which I use again to teach wholesalers and flippers. Again, this is a numbers game, and so I'll teach you the rules that I use so that you can become a successful wholesaler. Thank you very much. Thank you.