In this video I am with my student’s Kadi-Ann and her brother Dale at their first rental property (which they recently closed on). Their goal is to Buy, Repair, Rent and Refinance (BRRR) this house. What that means is that they will purchase this house for cash (using a private lender loan) and then they will repair the property, rent it out to a tenant and then refinance the loan. They are also considering turning it into an Airbnb.
This property needs almost no work (as you can see from the video). The owner of this property had a “For Sale By Owner” Sign in the front yard, and was having a hard time selling his property. If you visited the property, you would see that there was very little traffic that would see that sign (limited to people who lived on that street). In this limited inventory real estate environment, if he had listed his house for sale on the MLS, he would have sold in an instant. But he didn’t. He didn’t want to pay the commission. I see this all the time. Homeowners that sell their house for 50k less because they don’t want to pay a 6% commission.
So how did our student Kadi-Ann and her brother find this house? They purchased a list of 1,200 vacant properties in the city of Palm Bay, Florida (where this property is located) and sent text messages to that list. They used Propstream to get the list of vacant properties, and then they skip traced that list.
They used the texting platform that I recommended at my Wholesaling Inner Circle which is called Lead Sherpa. I spent quite a bit of time at the last Wholesaling Inner Circle showing my coaching students how to purchase a list of motivated sellers and how to skip trace that list and send out text messages to them.
You can learn more about text marketing motivated sellers by listening to the Podcast Interview I did with the founder of Lead Sherpa by clicking here
One of the people that she texted, was a “For Sale By Owner” homeowner, who desperately wanted to sell his house fast for cash. Kadi-Ann offered him 120k cash to buy his house. The After Repair Value (ARV) is an easy $160k to 170k (which is what the seller would have received if they had listed it on the MLS instead of putting a For Sale By Owner Sign in their yard).
Kadi-Ann and her brother Dale picked up this rental property with $40k to 50k in equity (that needs almost zero work) from sending out a text message! They learned how to do this at our Wholesaling Inner Circle which is our coaching program for teaching new students how to find houses like this. At our last Inner Circle we demonstrated how to use this platform and how to compile a list. You can learn more about our Wholesaling Inner Circle Coaching Program by clicking here.
A few weeks after purchasing this house, they purchased another list from Propstream of absentee homeowners in the city of Palm Bay.
They sent out text messages to that list as well. That list size was also approximately 1,200 people. And they ended up purchasing another house from that text messaging campaign. Their second house that they purchased was purchased at $74,000 and has around $35,000 of repairs needed but has an ARV of $160,000. Their combined equity in these two houses is over $100,000. Consider that they added $100,000 to their net worth by sending out just 2,400 text messages.
If you want to learn how to find houses like this, and how to market to motivated sellers, the best place to start is by registering for the Wholesaling Real Estate Boot Camp. I spend 3 days at this boot camp teaching new students how to find wholesale deals at wholesale prices by buying directly from motivated sellers, homeowners in foreclosure, short sales and bank owned properties. I also cover the basics of Wholesaling and Wholesale Real Estate including After Repair Value (ARV), Comparable Sales, Understanding What A House is Worth, Repair Estimates, Labor and Material Costs and Maximum Offer Price.
If you want to fix and flip or buy rental properties, then you should also attend the Fixing and Flipping Houses Boot Camp.
more about investing in real estate, buying and holding rental properties, wholesaling real estate, and fixing & flipping houses, then register for our free real estate training using one of the links below:
LEARN HOW TO WHOLESALE & FLIP HOUSES
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FIXING AND FLIPPING HOUSES TRAINING
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