Virtual Wholesaling Step 5 - Speaking Wi...

step 5 It’s time to seal the deal...

Who else out there feels a little overwhelmed at the idea of making that final call to pitch a perfect deal to the seller?

Hey Moguls, Chris Chico here, and you need to know that making offers that make you money is the key to success—and you want to get it right every. single. time.

So today, I’m continuing my 5-step series about virtual wholesaling with all the details on how to close deals without a sweat… and all without leaving your couch.

But first, a quick review of what we’ve covered so far.

Steps 1–4 Recap

In Steps 1 and 2, I revealed how to find motivated sellers (tired landlords) and perfect buyers (cash buyers). Check out Step 1 here and Step 2 here.

Then in Step 3, I explained why direct mail is the way to go to find your motivated sellers and perfect buyers. Why direct mail? Check out Step 3 here.

And in Step 4, I gave you all the details on setting up a direct mail system that works.

Now it’s time to wrap up this series with Step 5:

evaluating the deals
making offers
and then closing deals

Knowing Just What to Say

When you talk to sellers, you want to ask all the right questions. You need the details on the property and the seller situation, and you can’t get on the phone and just wing it if you really want to close this deal.

To make sure you ask all the right questions, use a seller lead sheet or a customizable template you find online.

After you get the info you need, it’s time to make an offer. And you want to make that offer right over the phone. After all, this is virtual wholesaling, so you’re not going to visit the property.

Some investors do complicated calculations to come up with an offer. You don’t need all that. You just need to pull up a report on the property and find the relevant info…

offer I call this my 15-second evaluation.

After looking at the property report, you should know exactly what you need to buy that property for based on what other investors are buying for… what the property is worth.

Bingo, you’ve got your next move with the seller.

With this approach, once you get on the phone with a seller, you don’t need to know anything about repairs. You don’t need to know what a roof costs, what a bathroom costs, you don’t need to know if a bathroom needs to be repaired…

It doesn’t really matter, because you’ve got an offer you know the seller will love and investors will drool over.

And remember, when you get these sellers on the phone, they’re already bought in. They saw your marketing, listened to your recorded message and asked you to call them back. There’s no hard selling required on your part at all.

The Close

Once you find a deal, you need to make an agreement with the seller.

So the seller says: “You know what, Yes, I am willing to sell my property for $50,000.”

You say: “Mr. Seller, yes I’m okay with that.”

You know it’s a great deal for you.

At this point, you’re not giving the seller any money. Instead, they are going to fill out a risk-free agreement. This agreement is set up to allow you to walk away from the deal with zero risk or liability.

At this point, you’re basically giving the seller a soft yes to this deal.

IMPORTANT: Remember, you should always have an experienced attorney review your paperwork and contracts.

This paperwork is a formal first step toward your deal—no money is involved. You’re both just agreeing on a price and signing some paperwork. You don’t need to put up any down payments or deposits.

After you’ve got your agreement with the seller, you need to present the deal to the buyers you found using the steps I described in the other lessons in this series. You can either contact them by phone or by email, tell them about the deal and get a response from them.

When you’ve got an interested buyer, you need an agreement with them too, which I call the assignment of contract. (Again, have an experienced attorney review this document.) Your agreement will state that you are going to transfer the deal to them for a fee.

And just like that, you’ve done your first virtual wholesaling deal.

An Example

So let’s say that you found a seller who wants to sell you a house he rents out that’s worth $125,000. You offer to buy the house for $50,000, and the seller agrees because the house needs work, it’s a rental and he’s tired of dealing with tenants, and he just wants you to take it off his hands.

Then, you decide to add $10,000 and sell it to a buyer for $60,000…

So you contact your list of buyers who are buying in the neighborhood where this property is. They’re really interested because the property is worth $125,000. When the buyer takes possession of the deal and closes on that property, you then get paid the $10,000 difference without ever owning the property.

Win-Win-Win

With this kind of deal, everyone wins:

The seller is happy to finally get rid of the problem property.
The buyer is happy because they’re getting a great deal on a property in an area where they’re already looking for deals.
You’re happy because you got paid, and in the process there was never any risk to you.

Even better, you never even left your house. That’s how good it was for you.

Everything was done via fax, phone or email. You never personally inspected the property since you did not have to worry about estimating repairs. You never personally met with a buyer since you communicated mostly via email and phone…

The whole entire thing was done in a virtual way. You could have been doing this from your laptop sitting at your pool; that’s how easy this whole transaction was.

Keys to Success

To be a successful virtual wholesaler, you need a phone and a computer with an internet connection. You need just a few hours a week. So it’s a great program if you have a full-time job (or a part-time job, or want to replace your current income).

You need a desire to succeed and persistence to make your business work for you.

You also need some help. This can come from a mentor, and from our resources here on Mogul. Make sure you have a solid support system in place.

What you don’t need is cash in the bank, good credit or years of experience as a real estate investor. And you don’t need to spend time learning a bunch of complicated strategies.

The Daily Grind Isn’t So Grinding

So what would your day be like as a virtual wholesaler? You’d be wheeling and dealing at your desk because you can work from home.

Really, you can work from anywhere.

So you could actually be doing deals on vacation or at Starbucks. And as a virtual wholesaler, you can provide for your family, check some things off your bucket list and enjoy life.

You can have that financial independence that you’ve always dreamed about.