Get Your FIRST Wholesale DEAL (Free Course)

Introduction

This tutorial aims to guide new real estate investors through the process of finding their first wholesale deal using effective strategies like driving for dollars and leveraging modern technology. This approach emphasizes practical action, community engagement, and effective communication with property owners.

Chapter 1: Building Your List by Driving for Dollars

Building a targeted list of motivated sellers is crucial in real estate investing. Here’s how to do it effectively:

Selecting Areas to Drive

• Focus on Older Neighborhoods: Target areas with homes built before 1994, as these properties often show signs of wear and tear.
• Identify Specific Zip Codes: Research zip codes in your area that contain older homes, especially those that may be in less desirable conditions.

Using Technology

• Utilize Deal Machine: This app allows you to easily identify properties that fit your criteria while driving. You can:
  • Use the map feature to pinpoint areas of interest.
  • Filter properties based on age, ownership duration, and condition.

Driving for Dollars Process

1. Drive Through Target Areas: Look for rundown properties or those needing repairs (e.g., overgrown lawns, broken windows).
2. Add Leads in Real Time: Use the Deal Machine app to add leads on the spot by clicking 'add lead' for each property identified.
3. Aim for a Minimum of 100 Leads: Building a list of at least 100 leads will significantly increase your chances of landing a deal.

Practical Tips

• Look for Signs of Distress: Properties with tarps on roofs, boarded windows, or overflowing mailboxes are strong indicators of motivated sellers.
• Consider Using a Team: You can delegate driving tasks to friends, family, or hire virtual assistants to help build your list.

Chapter 2: Communicating with Property Owners

Once you have built your list, the next step is to initiate conversations with property owners.

Methods of Outreach

• Door Knocking: Personally visit properties to introduce yourself and express interest in purchasing.
• Phone Calls: Call property owners using the contact information gathered through skip tracing features in Deal Machine.
• Direct Mail Campaigns: Set up automated mailings to reach out to property owners on your list.

Building Relationships

• Be Persistent: Engage with a minimum of 1,000 of the ugliest properties to increase your chances of success.
• Utilize Automated Messaging: Use the direct mail feature in Deal Machine to send postcards and follow-ups automatically.

Tracking Conversations

• Use Call Tracking and AI: With the introduction of the AI-powered dialer, you can track conversations efficiently and manage follow-ups based on the sentiment analysis of previous calls.

Chapter 3: Making Offers

After establishing communication and gauging interest, it’s time to discuss potential offers.

Understanding Property Values

1. Analyze Property Condition: Use the AI assistant in Deal Machine for insights on property values based on condition and market trends.
2. Calculate Maximum Allowable Offer (MAO): Use formulas to determine your offer based on the after-repair value (ARV), rehab costs, and your desired profit margin.

Tools for Offer Calculation

• AI Assistant (Alma): This tool provides real-time guidance and helps analyze properties to determine appropriate offers.
• Comping Tool: Access MLS comps to evaluate the market value of similar properties in the area.

Finalizing Offers

• Set Up Appointments: Once you determine a realistic offer, set up meetings to discuss the terms with property owners.
• Make Offers: Be ready to present your offers confidently to interested sellers.

Conclusion

This tutorial outlined a streamlined process for finding wholesale deals in real estate through driving for dollars, effective communication with property owners, and calculating offers. By following these steps, you can take significant action towards acquiring your first deal within a month. Start today by driving through your neighborhood, building your list, and reaching out to potential sellers. Happy investing!