People new to investing need to make money very quickly. I have put together below the fastest ways to make money in real estate investing without money, without risk, and without credit. Read below how you can accomplish this in less than 30 days.
If you need to make money fast, you need to have a winners mindset! I don’t recommend you set your goal for the minimum sustenance. Think BIG! Get Big Results!
You will need a little bit of money to operate your business. Yes, you can buy houses with no money and no credit, but you will need a small amount of money for marketing expenses. Internet Marketing reduces your advertising budget significantly, but there will still be some expenses with some of the marketing methods you choose.
Lets talk about setting a realistic goal and then break that down into actions. That said, lets assume that $30,000 is a good goal to generate from zero in 6 months. You would, of course, need to average $5,000 per month for six months, so lets figure out how to get you to your goal.
The first thing you need to do is to set your goal of $30,000 in stone and set the milestones. You want to track multiple goals, both large and small. Goal inputs are easier to track on a daily basis. Inputs include offers, appointments, and motivated seller calls (in the reverse order… you need calls to get appointments, appointments to make offers, and offers made to get paid). These smaller inputs are easier to track.
If you say “My goal is to buy one house this month,” that is not the best way to tracking your progress. I like people to get into their minds that: to buy one house you need ten offers, to get ten offers to need 60 leads, and to get 60 leads you may have to spend $200 on marketing. Tracking your goals this way gives you more control, and you can make adjustments accordingly. (By the way, regarding how many houses you buy is not a great goal. I’d rather you buy one house per month at a $12K-net profit, than five houses per month at the $5K net profit.) So define a plan based on my proven strategies, then taking consistent action to reach your goal.
Wholesaling is A Great Way To Get Income Fast!
Wholesaling can consistently meet your cash needs, while long-term investments can build your long-term wealth. More specifically, you need some nice deals and need an exit which doesn’t require cash. Now, I’m going to make an assumption that credit is as tight as cash, which may or may not be the case for David, but is very typical, so we’ll proceed as if that’s the case. So, David needs deals he can flip quickly without having to close first. Assigning the Contract is the best way forward. It also means you will need to be simultaneously building his buyers list.
Next: we’ll go through my 4-step process for:
- Finding the Deals
- Building Your Buyers List
- Selling Your Deal
- Closing and Getting Paid
Step #1 – Finding the Deals.
This is clearly critical, as a HUGE rookie mistake is not generating enough leads, and then trying to “make a deal.” If you buy a house this way, the deal is not a deal. Instead, you need to generate a LARGE number of leads from which you can cherry-pick the real deals… “From quantity comes quality.” Understand that this is a numbers game. The number of qualified sellers (those with enough equity to do a deal if properly motivated) who also have the proper motivation to sell at a HUGE discount is small. How do we deal with that? Generate more leads. Also along those lines, you need to get GOOD at pre-screening, because the worst thing you can do is spend time with sellers who can’t sell you the house if they wanted to or they don’t have enough equity.
Top 4 Tips for Finding Quick Flips
1. Find geographic areas with a high percentage of ugly houses. They don’t hide…they’re UGLY, and the grass (or snow) is up to your knees.
2. Find demographic lists with a low value to surrounding houses (I look for a certain percentage or below of median sales price for the zip code.
3. I have had more success finding wholesales deals through Probate, Code Enforcement, Bird dogs (referrals).
4. Stick with “bread-and-butter” homes – those with the largest buyer pool and most appeal. For me, that’s a 3-4 bedroom house with 1-2 bathrooms, at least 1500+ square feet on the main level, and a garage – plus or minus about 10-20% of median sales price.
Step # 2 Build Your Buyers List
You will only be able to cash out deals that you have a buyer for, and you need them ready in a timely fashion. Traditionally, this meant rehabbers or landlords. With some of our newer strategies, like “Whole-tailing”, you can build a buyers pool of retail buyers looking for wholesale prices. The nice thing is, they can and will pay significantly more than our traditional pool. Let’s get into the: Top 4 Strategies to Build a Buyers List
- Ads – running ads online, remains one of the foundational strategies for building your buyers list. You need to make sure you make the ad short, sweet, and very attractive to buyers.
- Email lists – Create your own and use a strategy called “Email Inheritance”. The idea is to get on every buyers list you can in your area. Inevitably, untrained investors are going to send out group emails to their lists, at which time you can add those buyers to your own list.
- Signs – you should have two types of signs up in front of every house you own or control, and the signs should be designed to draw in both sellers, “wholetale” ( discount retail) buyers and wholesale buyers. We use multiple BANNERS in every yard, and they go up when we sign the purchase agreement.
- Direct mail / Voice Blast / Email Blast – we use direct mail to build our wholesale AND retail buyers list, and these are our most productive strategies.
- Online Lead Finder Software – See Video Below:
When building your list, I strongly suggest aiming for quantity OVER quality. I base this on the adage that “from quantity comes quality.” I want to market to as many potential buyers as possible but will then sift and sort the respondents down to a much more qualified group that I want to work with. This is counter to our approach with sellers, where we want them to show up pre-screened. My final piece of advice on building and communicating with buyers lists is simple… use automated tools throughout. Don’t get caught up in talking to random unqualified buyer prospects. Use tools like email, websites, and direct mail to handle this process. You’ll thank me later.
Step # 3 Promote and Sell Your Deal
The next step is to sell your deal, whether wholesale or Wholetail. What I teach when it comes to selling is unique to our industry, though it’s common in successful businesses outside our industry. That is…
+++++ Add value, do not reduce price ++++
How To Add Value
Too many investors believe that they are in the commodity business as well, and that’s how they treat wholesaling. You need to do what I do, which is repackage my product as something different than the commodity that other people are selling.
Make it easy to do business with you. Do the due diligence for the buyers, provide credible valuable information around the deal that they can use to make their decision.
Give wholesale buyers a product they want more of, because we made it easy, and they made money. Even with Wholetail buyers, who are end buyers, we’ve given them a product they can make money with, and encourage their repeat business.
How do we add value? I have created and taught what we call the ‘Investment-in-a-Box.’ I provide all the necessary due diligence in a credible format, then market it with effective marketing techniques that take advantage of
3 Key Concepts in Selling Psychology
Authority – by demonstrating ourselves to be legitimate authorities, capable of making them lots of money by following our advice, we make use of the human tendency to follow those they perceive as authorities.
Social Proof – this is a HUGE one. We look to others to decide how to react, for better or worse. This is why we use testimonials. This is a thinking shortcut. In our business, by seeing lots of other interested people looking at a house, the mental connection is made that this is a desirable house. This is why you don’t want one-on-one showings.
Scarcity – according to the scarcity principle, we assign more value to opportunities when they are less available. Have you heard the phrase “we always want what we can’t have.” This is incredibly important if you want to sell faster and for more. This is why auctions work, and why we use many of the same principles in selling our houses, to get the scarcity principle working for us.
That should give you some good ideas for how you can position yourself to sell faster and for more than the investor formerly known as your competitor.
Step # 4 Close Your Deal
This is the last in the step This is where you pick up your check, so don’t rest once you have a signed contract. Realize that nobody but you care as much about you getting this check. The list of people with a lot less to lose includes title companies, Realtors, and Mortgage brokers specifically. Plan to keep following up until the day you cash the check. During the time between getting a deal on paper and closing it, you’ll want to make sure:
- Everybody is doing their part to keep things moving (assume people aren’t on top of it) with financing (if applicable) AND title
- Nobody has any concerns about seasoning (this should have been addressed before now, but let’s double-check to save time and heartache)
- Funds are lined up (all around)
- All parties are actively engaged and nobody gets spooked
We use checklists to make sure nothing slips through the cracks. This can be a stressful period, and the key to easing it for everybody is to speed it up as fast as possible. Understand that any real estate transaction can be done as fast as:
- Parties are willing to move
- Title can be done
- Funds can be secured and transferred
That could be days in some areas to a couple of weeks in others. What it’s not are months. 30 days would be the longest I would wait for any buyer, as that doesn’t require any extraordinary speed on anybody’s part. I prefer 21 days. On the flip side, try not to wait until the last minute, then try to rush everybody. I try to save those rush favors for when I need them. What this means, is keep things moving from the day you get the agreements signed. So, I hope these post has helped illustrate not only the wholesale process but the concept of breaking a large goal up into actionable components. Remember, the path between where you are currently and where you want to get is an actionable plan. The process is as follows:
- Set your goal with a specific end date
- Create an “actionable” plan
- Start working your plan, weekly, then daily, then hourly
Further Reading for specific details on how to put wholesaling plan into place is found in the below section: