Mailing Offers Real Estate | Discount Wholesalers Making Offers | When to Make Offer Wholesale

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What They Don’t Tell You About Wholesaling
Houses When Making a Cash Offer on a House Hi, this is Neva at TimeForInvesting.com and
today, I’m going to share with you when I’m wholesaling property how I make my cash offers
to property owners. So stay tuned to see what’s at my closing kit.
So let’s get started, this is my closing kit that I’m going to show you what I include
and things like that. I target absentee owners so most of my offers are to property owners
that have rental property and I’m offering to purchase their rental property. Once I’ve
spoken with them and I know I want to move forward and make an offer, I do not make offers
over the phone. I either email the offer, fax it, or mail.
I write up my contract and everything I just tell you, include that, and then send it off
to them what my offer. And in my offer I put a note that my offer’s valid for five days.
This way they have time to think about the offer and they know that everything I’m saying
is official. I find that works better to get a contract in front of the property owner
and you can discuss it. If they have any questions, they can call me and things like that.
What I want to get across to you first is since these are rental properties, what I
do when I make the offer I always try to aim to make sure the property owner knows that
I listened and I’m trying to answer all the concerns they need they told me that they
had. I’m going to use this one for an example for
what I include when I’m sending an offer with the contract.
This one, I start off by saying, “Thank you for contacting us about your property, blah,
blah, blah.” I start off and I say that, “It looks like we can be a good answer for a lot
of the things that are important to you,” and then I list out the things that they told
me when we spoke. This one for instances I said, “I remember
you said you want to sell the property without hassles. Well, we can provide a solution.
We can purchase your property in as-is condition and complete closing within 40 days.” And
then I go on to say, “Without the property owner travelling to Virginia,” because that
was their concern. They want to close in 40 days and they did not want to come to Virginia,
because they’re out of State. I will list all the reasons that they can do that and
that the lawyers will send them the paperwork and it will have to be notarized. I will list
all that out letting them know that that is addressed in this offer to them.
Then I go explain how I came up with my cash offer so that the next paragraph I talk about,
“We’ve taken into consideration you mentioned that the kitchen and the bathroom are out-dated,
and there are water issues in the porch area as well as other repairs to bring the house
in a condition of other comparable sold houses in the neighbourhood.”
I list the damages, and things, the repairs that they told me need to be fixed. I list
them so they know I factored those into the offer. And then I list other things that are
included. I remind them that our offer takes into account the property condition and the
cost incurred holding the property because lot of times people forget that there is holding
cost when you have the property like insurance payments, utilities, and things like that,
taxes; I include that. And then because it’s a rental what I do is
I calculate and let them know how much they really net for the property currently. For
instance, this property, the rent is $1,550 a month, right. So I multiply that by 12 and
that’s $18,600 and the property taxes I estimate to $3,047. And you can get that from your
multiple listing service or your tax record. Most states have their tax records online
if you just Google it. And I estimate property insurance at $500, and this was a condo so
I included condo fees at $287 a month. When I add all that up, see we have it here; their
actual income after expenses on the unit is actually $11,409, right? Then I write, because
our cash offer is $295,579, “Our cash offer is 18 years of income in your pocket today.”
And the reason why I do that, I want to get them to thinking about how long, 18 years
for this one, that’s a long time. Because I’m offering this to you now, I’m going to
purchase the property with the tenant there, and it’s going to take you 18 years to make
how much money I’m telling you we’re going to give you today cash.
And so that really to me starts a really good dialogue between me and the property owner.
So if it’s a rental, I always calculate and let them know what their actual net income
is from the rental right now. This particular one, they don’t have a mortgage.
But if they did have a mortgage payment I will include that too. So I’m really trying
to get across, to let them know just how much they’re going to make. “This is how much you’re
currently making and this is how much our offer will be. That’s the value of this.”
And there’s other things I go into the offer; if you have any questions then I’ll let them
know what’s included in it and what I said in the kit.
So if I mail the offer, I put the contract, this whole explanation of how I came up with
the offer in this folder. In this folder I created on Vista Print. You can go on Vista
Print and make things that look completely 100% professional.
I don’t remember how much but they weren’t much. I just put our company’s name, our slogan.
I put a couple of testimonials that we received from previous customers on the back. And then,
on the inside is where I would have what I was just reading to you and the contract,
and then I also include, there’s a little insert here, I could put my business cards.
And this right here is actually a pamphlet as well from Vista Print that just talks about
the company, what we do, our contact information and actually, I got this for free. I always
get these for free because Vista Print will always send you little freebies. I always
get the pamphlets and I give them in my offer. The other things I have in the folder are
the explanation of how I came up with the offer, the actual contract that they need
to sign, and then I talk about-a little bit more about us, let them know about our company,
and what’s included in the other paperwork. I also have, I found this article online and
this article is from someone totally third-party talking about selling houses to private investors.
I include this because a lot of times when I send my postcards, this communication with
the property owner, this is really their first time really learning about the process to
sell to private real estate investors. This is just a third-party basically promoting
the process, the benefits of it. I included it in the package so that the entire package
isn’t just like us promoting ourselves, there’s also someone else talking about the whole
selling process to and investor. And then this is just a photocopy of a gift
card because at the end, when we get to closing we give them a Walmark gift card so this just
talks about the-we could say, “To show our appreciation for your business we will present
you with a $100 Walmart gift card at closing. Happy spending.” And that’s just something
that you do to differentiate us from other home buying companies who say, “Thanks for
your business, thanks for choosing us.” So that’s the package and I just wanted you
to see what I do and just I try to-then I have another, I forgot, there’s another page
right here where I explained if they’re ready to move forward with the offer, the next steps.
I tell them, “Okay, to move forward with this transaction, kindly notarize and return the
signed purchase agreement within five business days,” and that’s the contract. And I talk
about the closing date and things like that. I try to make it as easy as possible so that
when they get this package, I’ve put this together from common questions I’ve got, [00:09:53]
to send out the contract, people would ask, “What’s the next step and things like that.
It’s really good information to let them know what will happen next if they want to move
forward; okay, sign, notarize, and then I also tell them when because also with me,
I go to the property after they sign the contract. I let them know that, that’s an important
part; you go out and confirm everything. This just makes it really easy. Now I don’t
really get as much questions at all from people because they usually understand and they know
what to expect. So like I said, “I’ll send this out to you on Thursday when I send out
the newsletter this week so you’ll get it if you’re on my list.
If you’re not on my list, then get on my list so we can keep in contact or when I send out
information, you’ll also get it. See you next video, bye-bye!

35 COMMENTS

  1. If you are on my email list I sent out the templates this morning, so reminder to check your emails. Remember to add my email address to your contacts so you receive all my emails and they don't go to your junk mail folder.

    If you are not on my email list visit my blog at www.timeforinvesting.com , download the ebook and we welcome to the family.

  2. Very, Very informative. I love the way you break it down. I was looking into purchasing some envelopes or something more professional to present my offers in. I am in the step in the door phase of my wholesaling. I drove around for vacant house, mailed out to a list of 200+ listings, got 11 motivated calls back. I haven't purchased a buyers list yet so I am afraid to proceed to make an offer. Like you I have little ones, and it is hard for me to go to REIA meetings, courthouse steps etc, etc…

    I find it motivating to see others like me taking the step to do this. I subscribed to you a while back.

    Anywhoo…didn't mean to type a letter but I just want to encourage you to keep up the good/hard work, and thank you for making videos.

  3. Hey neva it's been a while good to hear from you again. As for me I'm still trying to find that needle in the hay stack, I know it took you 10 months to get your first deal but good Lord this is not at all as easy as I was told in those (seminars, boot camp etc..) however I've learned so much about real estate and I've even gotten mls access which is awesome. For me I've talked to about 15-20 homeowners (I don't count the ones that show no motivation) some ppl are just off by far really rude. but yeah im assessing a few property's now and I'm glad you posted this video like I said before you're the best out here I will absolutely follow your advice God will bless you for blessing us with your ideas. Im on my 8th month of taking initiative and nothing yet however there were times were I had to stop and restart due to my responsibilities my little girls didn't wanna share mommy but now I have lots of time girls are off to school. I will let you know when I get my first deal love ya Neva God bless..

    P.S. you should be getting paid for this..

  4. Great info. Good videos. I just have one suggestion…please be aware of that smacking noise that you make. It's kind of distracting and makes it hard to concentrate on the amazing content. Good work otherwise!

  5. Hey Neva,
    Just a quick question, I've been looking at youtube videos and readings on wholesaling trying to get started but still feel like I'm missing things to really start making deals. Do you think that it is necessary to pay for one of the expensive Real Estate Conferences/seminars to acquire the proper knowledge?

  6. Hi Neva, I've been watching your videos and want to thank you for sharing your pearls of wisdom. You have a very nice way about you and I am so happy to hear about your journey into this business. Your presentations are very easy to watch and learn from. Sending good vibes and wishes for continued success!

  7. Thanks Neva for all your great tips. You are really helping understand the process of wholesaling and its keeping me motivated.

  8. Hey Neva, Keep doing what youre doing. Ive enjoyed your videos and your perspective on building a good real estate business. I would like to have a strategy session with you if thats possible, it would take 10 min of your time, email me if this is possible [email protected]

  9. Hey your vids are awesome. My uncle has a commercial prop that im going to take use of an office.. What should i make sure to have in my office, im looking to begin virtual marketing.. So computer, printer/scanner & a fax machine to ?

  10. Hello Neva! I love watching your videos as I am just getting started with wholesaling out here in LA. Would you be able to email me the templates that you discussed in this video? I'm currently on your email list but at the time this video was made I was not. Thanks!

  11. Very well received.. I am Brand New to Georgia. I am very interested in getting into the Real Estate field as an Wholesaler. I would like to know,  a person that has no real estate, where would you recommend they start from ?

  12. Hi Neva!! Why do you not choose to make cash offers over the phone? Do you discuss what offer price you will give the seller before you send them the contract, or is the first time they see or hear of an offer number when they get your offer packet?

  13. Also, are you always mailing you offers/contracts? or do you ever fax/email when time is important to beat out other wholesaler competition, for example

  14. Can you share the title or where to find the article you include in your packet about selling to private real estate investors?

  15. I admire give you always give professional products. a lot if while sell gurus just have a folder they found some where, some paper and a long worded contract they found online. they think it doesn't matter because the seller is to desperate to notice. Its one if the ways wholesalers get a bad name. I want to run my business more like you do. How can someone not take you seriously when a professional presentation. please let me know when you decide to provide samples of your paper work. its great to learn from someone who takes this rile seriously.

  16. Hi my name is Javon I'm in Chicago I work and motivated to earn my own income what's your email address I'm interested in wholesale but I have little exp.

  17. do you make offers to the seller in person after you have visited the property or do you email all of them?

  18. Great videos Neva! As far as the contract is concerned how is it constructed? Is it something from a template or something generic you create or something from an attorney? Thanks. Love your videos.

  19. Hello Neva, thank you for sharing such helpful information with us. I'm just getting started in the real estate wholesaling business in the Maryland area, and would like to ask if you would refer a good title company for investor deals in or near Maryland. Thanks in advance.

  20. Hi Neva! Great videos! I just attended a Than Merrill 3-day event and unfortunately I walked away with more questions than answers. Your video's are making things much more clearer. Can you tell me how you are able to guarantee a sell in 3 days? Is it lawful to guarantee such a promise? I'm also a certified credit repair specialist and it is not lawful to guarantee score increases (for example) to my clients. Thanks so much!

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