Monday, March 26, 2018

Case Study: Why I don't know where the house is I sold and Why I really don't care...

HAPPY NEW YEAR!!! (I meant to post this in January...Don't be a procrastinator like me!😯) 

#SunnyDoesInvesting.net

The year is 2018 and I love to write, but I really don't feel like writing a whole lot today, so I am going to make this short and sweet. I hope your first week of 2018 is going well. I am having a great time learning about real estate and exploring all of the opportunity in it. I have been studying real estate for two years now. I did my first sale transaction back in 2003. It was a favor for an investor friend of mine. I found him a property, texted him the pictures and eventually signed the purchase sale agreement as his power of attorney. He wired the money to the title company and only really saw the house after the closing. That experience really peaked my interest, and I wanted to do more but I got caught up in the daily grind and everyone tells you, "Go get a job!" I was not ready to be an entrepreneur because of my fear of being outcast for not conforming to the norm. 

I have always had a hard time working a "nine to five". Ask anyone who has worked with me. I have always struggled. Many times I can't even get there on time. I have a Masters in Business Administration and a Masters in Education. Why? I have no idea. I hate working. The work I do is not mentally stimulating. Truth is; I just want to run and hide from the status quo.

The key is finding ways to support myself financially without working. There is a saying that goes, "Do something you love and you will never work a day in your life." My goal has always been not to work...at all. REAL ESTATE is making that dream a reality! I will expound on that idea later.
I need to explain to yall what I do. I am a VIRTUAL REAL ESTATE fanatic. My self-created title is REAL ESTATE MEDIATOR. Essentially, all I do is put deals together with little to no money of my own. Some people call that "brokering" deals. Confession: I do not have a real estate license. I have taken the required courses, but I do not have a license. I am debating on if I should take the test or not, but we can talk about that later. Anywho....VIRTUAL REAL ESTATE; Someone asked me,"How is it virtual?" Virtual means to do something using the internet.

I sold a house a couple months ago and I have not seen it. I found it with the power of my internet. I sold it with the power of my internet. I received a wire transfer as evidenced by my online banking platform. If you do not like the internet, you do not like money. The internet is the number one most powerful tool for making profit in business. Period. There is no better way.

Here are 11 easy steps to closing your first virtual wholesale deal;
STEP ONE: Find a discounted property for sale at an online auction or real estate sale page.
STEP TWO: Google the address and gather info about the property from other websites.
STEP THREE: Read the directions and policies of the seller and website platform. Take notes.
STEP FOUR: Register to join as a buyer on the website.
STEP FIVE: Choose a state to focus on and find a title company. Make sure you know the title company's address, attorney's full name and email address and wiring instructions. (You can request wiring instructions by email.)
STEP SIX: Browse the site. Bid on the property of your choice or submit an offer as directed.
STEP SEVEN: Win the bid. Receive the purchase sale agreement. Electronically sign it and either use your personal name or business' name as the buyer on the contract. You can only buy properties with registered business name, if you choose not to use your personal name.
STEP EIGHT: Contact your funding partner, private investor or lender for the 💰earnest money deposit, email the info about the property to your buyer's list, and hope one of them provides the earnest money OR use your own money to cover it. The investment will likely pay off triple fold!
STEP NINE: Once all parties have signed off on the contract, you will have 30 to 45 days to sell your contractual rights. You can sell (your contractual rights to the) property through email marketing, text message marketing and or social media. IMPORTANT: Make sure you get the lock box codes from the seller. If they won't give it to you directly, you will need to reach out to a local realtor to help you with the access, because some buyers will want to see the home in person,Believe it or not. 😃LOL!
STEP TEN: After emailing, texting and or posting your real estate deal make sure to respond to inquiries in a timely manner. Some buyers make offers with time stamps. They will only wait for a period of time for a response. They will need to know if you accept their offer or not. KISS: Keep it simple. "Your offer is accepted. Thank you." OR "Thank you for your offer. Our counter offer is $____." Never say "No". Always Agree or provide a counter offer for them to ponder over.
STEP ELEVEN: If you receive a good offer ACCEPT IT IMMEDIATELY. Send the buyer the title company information along with their wiring instructions. Also, send the buyer a purchase sale agreement to sign. I use hellosign.com for most of my real estate documents, however, you can also send the contract as an attachment to the buyer's email and have them sign and scan or fax it back to you. Do whichever one you are comfortable with. IMPORTANT: You will have to send the buyer the PSA and double close if you want to hide your profits OR if you are selling a foreclosed home.

If non of these conditions exist, instead of sending the buyer a PSA, you can send them an
Assignment contract.

You can assign your interest instead of selling the house with a PSA. If you sell the house using a PSA, you will need to secure transactional funding to buy it.  If you have a good spread this funding will be easy to get approved for. No credit checks. No bank statements needed. 

For example; Wholesaler Susan found a house on www.Xome.com. It had 3 bedrooms and 1 bath, located in Atlanta,GA. Susan placed a bid online and won the house for $36,000☺,and with fees and other costs the total price on the contract came to $48,000
  • Next, she used her own funds to wire in the required $2,000 deposit to the chosen title company. (Also, when a proof of funds was requested, she used her resources from her lender's website.)
  • Then, according to her contract she had 30 days to prepare to close. Through email marketing she found a buyer who agreed to buy the house for $58,000, so that is a $10K spread!
  • She will now need to send the END BUYER a purchase sale agreement stating a total price of $58,000 plus all closing costs. (I used to use a one page PSA, but now I use this two pager.
  • Susan called (and emailed) the folks at REIFunding aka Capri Capital LLC for the transactional funds she needed. She emailed the representative both contracts along with the title company's info and by closing day the $46,000 she needed was in escrow! (Her lender happily provided her one day funding at 2% interest.) 
  • Actually, before closing day the attorney from the title co. emailed her a HUD statement along with the request for her bank info and snail mailed other forms to her physical address for her signature. (First, they would need to close her deal..the A to B transaction. Then close the deal she made with the END BUYER...the B to C transaction...)
  • She mailed everything back and within a few days the deal was closed and $10,000 was wired to her bank account. Voila! Just like that! She became ten thousand dollars richer!
If you are lucky, you will be able to find a serious buyer on day one, but sometimes it takes a little longer. Worse case scenario: the property never sells and you lose money...but that is why it is important to build a strong buyers list before even searching for houses to sell. If your buyers are motivated enough they will put up the earnest money up for you and it will be a win win situation. The key is to make smart choices and follow through. Don't give up when complications arise, just learn from your mistakes and keep pushing forward.

In my next post I will go into details about my first out-of-state virtual sale. I still have never seen the place in person and really don't care if I ever do...
STAY TUNED, Queens and Kings!!

The throne is yours! Own it!

And remember: 
LIMITATIONS ARE NOT REAL. LIMITATIONS ONLY EXIST IN OUR MINDS.

👑👑👑👑👑👑👑👑👑👑👑👑👑👑👑👑👑👑👑👑👑👑👑👑👑👑👑👑👑👑👑👑👑👑
For more on this topic feel free to email me at sunnydoesinvesting@gmail.com.



2 comments:

  1. Go to SunnyDoesInvesting.net for more information.

    ReplyDelete
  2. Update: Since the writing of this blog post, I have actually gotten licensed. I am now a licensed realtor in Texas. :)

    ReplyDelete