1. Benefits of Wholesaling  Fast Cash – 30 days or less  Little or no money required  Minimal risk  Sell to a pool of regular buyers over and over  No tenant issues  No contractor issues  No holding costs  No credit needed  No or low barriers to entry  Profits range from $2k to $20k per deal  Can wholesale FSBOs or REOs

2. The Disadvantages of Wholesaling  No real tax shields available  Profits are typically less than other forms of real estate investing  No long term wealth building or appreciation  Remember Risk versus Reward

3. Wholesale Formula a.k.a. “Fixer Formula” After Repaired Value Multiply times 65% Minus Repairs Equals Rehabber “Strike Price” Anything below the strike price is profit

4. Wholesale Example After Repaired Value $100k x’s 65% $65k Repairs$-12k Strike Price$53k Anything below $53k is profit

5. Wholesaling Basics Find buyers first If you have buyers you have a business No buyers = no exit strategy FSBOs = marketing and assignments REOs = listing agents and back-to-backs Remember the formula Market on the cheap at the beginning

6. Six Steps to $6k in 16 days Wholesale Profits Marketing and Evaluation Offer Secure contract between “A” seller and “B” buyer Market property to buyer’s list & Sell to “C” buyer Sign contract with “C” buyer = assign contract with addendum Close

7. Elements of Wholesaling Success 1. You – what’s your mindset and motivation? 2. Your Market – neighborhoods, prices, 3. Your Marketing – for sellers and buyers 4. Your Buyers – your exit strategy 5. Your Systems – automated for repitition

8. The Four Rules for Wholesaling Beginners Rule #1 – Keep your marketing strategies cheap Rule #2 – Always be marketing for sellers & buyers Rule #3 - Don’t worry about your brand. You’ll build your brand as you do deals. Rule #4 – Understand your wholesaling sweet spot, prices and what buyer’s are willing to pay

9. Rule #1 – Cheap Marketing Strategies In the beginning spend as little as possible Keep it inexpensive until you have a better feel for the market and what marketing is effective Once you start to see some results and have a few successful deals under your belt, then expand your budget

10. Rule #2 – Always be Marketing for Buyers and Sellers

11. Rule #2 – Always Advertise for Buyers and Sellers Marketing for Buyers – $$ – Classified ads in newspaper – Signs – Bandit and Yard – T.V. Commercials, Radio – Billboards – White and Yellow Pages – Covers and C.C. sized ads – Direct Mail to Apartments – Promotional Material

12. Buyers Rehabbers Landlords Fixer – uppers Builders who do rehabs on the side Get Buyers into properties by telling sellers and agents that you have a partner (funding partner) who needs to see the house.

13. Rule #2 - Advertising for Buyers and Sellers Marketing for Sellers – Free – Driving for Dollars – Vacant Houses – Classified ads online » Craigslist.com, oodle.com, trulia.com, many others – Referrals » Mortgage Brokers, Attorneys, – Attend REIAs – Building code violations – tall grass – Internet Marketing » Video, Articles, Email, Social, Banners,

14. Rule #2 - Always Advertise for Buyers and Sellers Marketing for Sellers – $$ – Classified ads in newspaper – Signs – Bandit and Yard – Commercials, Radio – Billboards – White and Yellow Pages – Covers and C.C. sized ads – Promotional Materials – Direct Mail to Lists » Probate, Free and Clear, Expired Listings, Delinquent Tax Sales, Out of Town Owners

15. Sellers Motivated sellers with equity Banks with REO inventory

16. Wholesaling: Branding Forget it Pay for things that result in sellers and buyers and closed deals Build your brand as you close deals Build your reputation as you close deals

17. Know Your Sweet Spot Where do Wholesale buyers want to buy? Inner ring neighborhoods First ring suburbs First time home buyers - they buy from rehabbers If you get something in a prime suburb the rules stay the same If you get something in the country the rules stay the same

18. Wholesaling: Seller Lead System Buy Calls – if there’s equity “GO” Pre-Call Planning – drive the comps Presentation – Hot buttons for selling Negotiation – what’s the least you’ll take? Is that the best you can do? Contract

19. Phone Scripts Where is it located? Sweet spot? What’s it worth fixed up? How much work does it need? “If I could pay you all cash and closed in a week what’s the least you would take?” “Whoah… is that’s the best you can do?”

20. Wholesaling REOs Network with listing agents and asset managers Let listing agent manage both sides for two commissions Target houses on market for 3 months or more (6 months) – Less competition than new listings Make offer with normal Realtor contract Add inspection contingencies Sell using normal contract for B to C

21. Wholesale Closing: assignments FSBOs “A” to “C” closing Assignment fee paid outside closing Addendum explaining fee and assignment Memorandum of Purchase Agreement

22. Assignments: Contracts #1 Standard Purchase and Sales Agreement Assignment of Contract Addendum Give both to title company

23. Assignments: Contracts #2 Option Contract Notice of Option Affidavit of Contract

24. Assignments: Contracts #3 Option Contract Notice of Option Affidavit of Contract Back-to-Back Closing

25. Wholesale Closing: Back to back REOs “A” to “B” then “B” to “C” closing Back-to-Back Profit is spread between the two deals

26. Back-to-Back: Contracts #1 Standard Purchase and Sales Agreement – “A” to “B” – Banks required P&S agreement Contract Addendum – “A” to “B” – Banks required addendum Title company – “A” to “B” Standard Purchase and Sale Agreement – “B” to “C” – Vanilla P&S agreement As - is where-is Owner of record prior to closing Title Company – Your preferred title company – Closing instructions, title commitment, HUD-1 from “A”- “B”