Hey you! Are you on the edge of your seat with your first real estate wholesale deal waiting in the wings? Fear not, this post is tailored for you, the ambitious individual embarking upon the journey of wholesaling distressed properties, transforming them into goldmines.
An essential ingredient to successful deals lies in setting the right expectations with your sellers. By doing this, you invoke a symphony of seamless transactions and keep the anxiety at bay.
Our podcast co-host and wholesale real estate expert, Ryan Haywood has learned that clearly communicating next steps and timelines with sellers helps facilitate seamless deals. So without further ado let's dive into tips for setting expectations with your sellers.
Navigating the First Deal
In 2019, Haywood entered the world of real estate wholesaling. His journey commenced when he closed his inaugural deal, netting an $8,500 finder's fee. Since then, he has conducted over 425 profitable transactions. Given his wealth of experience, Haywood provides tips for wholesalers embarking on their first deal. He stresses the importance of setting clear expectations after getting a seller under contract.
Getting Your Ducks in a Row
Alright, here's the picture: Your marketing outreach is on point, your lead's in the bag, the phone calls and handshakes are done, and you're at that pivotal point where paperwork turns a prospect into a promise. You're sitting across the table from the seller, contract in hand. This is the moment when the road forks—the path you choose now paves the way for the deal's narrative. The clock starts ticking for your seller the minute they ink the deal, staging the scene for the big day—the closing date now circled in red on their calendar.
Laying the Groundwork for Expectations
"Communication is the bridge between confusion and clarity," well, somebody wise once said that, and it holds true in real estate wholesaling as well. So when you present that assignment contract, do it with confidence, and follow it up by setting the stage:
- Lay out the timeline post-contract signing— crucial due diligence begins.
- Inform them about the behind-the-scenes hustle—finding a buyer, escorting contractors, crunching numbers.
- Reassure them with updates and milestones—title work, inspections, finding financial partners.
This upfront clarity not only oils the gears but also dials down the stress levels for everyone involved.
Streamlining the Seller's Journey
Here's the walkthrough for a quintessential deal:
- Title Work: This kicks off post-contract and could take a breezy 7-10 business days or a bit more; keep the seller in the loop.
- Contractor Visits: Buyers may want a tangible taste of the property, so arrange contractor visits. Keep things crisp by securing a key in a lockbox—ensure the seller knows they can access it anytime.
- Regular Check-ins: No one likes radio silence, so pencil in those calls. You relay what’s been done, how it's going, and nudge their confidence in the process.
Remember, in the stew of transactional steps, communication is your ladle.
When Things Go Sideways
Let's face it: even with the stars aligned, hiccups are part of the hustle. If you're a hair's breadth away from closing but the buyer's MIA, don't clam up. Pick up the phone, be candid with the seller, and if you have to, draft an extension request. These are the conversations that cement trust.
The Final Countdown
Assuming all's well and title work's as clean as a hound's tooth, builders have done their strut-through, and a financial partner nods along, you're prepping for the final act. Here's the protocol a week shy from closing:
- Call the seller about the ready blueprint for the closing sequence.
- The next voice they should hear would be from the title company, spinning the yarn of paperwork and penning down schedules.
By doing so, the seller's got a panoramic view of what's to come. This isn't just about tying the knot on a deal; it’s about dealing a deck of assurance cards, spelling out every next move so the sellers aren’t left guessing.
Building a Reputation That Rings Bells
Every era has its legends, some woven into songs, others carved into testimonies. Your goal as a wholesaler is to hammer home an experience for the seller that’s smooth as silk, straight as an arrow. That way, your name might just echo in the halls when they chirp to friends and kin about their hassle-free transaction with you. The finest referrals come from those who’ve danced the dance with you, and those are the referrals you want to waltz in.
