Have you ever wondered what it might be like to “wholesale” or assign contracts for profit while you are overseas? It’s an interesting paradigm shift that one must make to consider it. No matter if you are “on assignment in London” as my listener is, or being able to sell homes remotely in other areas virtually.
Here’s the reason why I ask! Recently, in The Red Pill Investor Facebook Group (Public Version) one of our great customers/listeners brought up this unique question!
Hey Karl, do you have any suggestions for me? I am a new Realtor® coming from the private lending side of investing. I tried wholesaling, (still working on it) but wasn’t able to get any deals. Anyway, I am about to head to London for a 3 month work trip (previous career taking hold again) (need the cash), what are your thoughts for staying in touch and connected to the Southern California market (Los Angeles)? I am taking a HUD course from my Realtor® association, and was hoping to bid on some HUD homes (already cleared it with my broker and using our NAID registration). I would LOVE to hear your insight should you have any, I know that I am probably in a unique situation, but I am doing my best to stay up to date, informed and action oriented while abroad. Thank you so much for reading and have a wonderful Thanksgiving!!!
How To Wholesale No Matter Where You Are!
One of the first things that has to happen (in my opinion) is a mindset shift. One of the benefits of assignment of contract, or wholesaling property; is the ability to do it across the United States without a license. There are a few places where “Assignments of Contract” are not allowed. In those situations, a simple double close will do. So either way you go, you have the ability to close in the way you need to.
Since no license is required to assign property, or double close, then by default, there are currently 316 Million people in the United States. Assuming that roughly 1/3 of the population is of house buying or selling age, that leaves approximately 100 million people that could be potential prospects. That is simply from a people perspective.
How many homes do you really need?
According to the National Association of Realtors®, there were approximately 5,090,000 homes that sold in 2013. With 2014’s numbers even stronger, it would seem that the trend may continue. Even if it does not, or shrinks somewhat, that means in the United States alone, there are over 10 MILLION transaction sides that are possible (One Seller, and One Buyer) who are going to either buy, or sell real estate in the year of 2015.
With this in perspective, it becomes a little easier to swallow. If we only focus on the homes, let’s say 5M homes, then suppose a measly ONE percent would be interested. That’s 50,000 homes. Now, assuming your skills are limited, reach, and ability to communicate with them… Lets assume that you fail ninety nine percent of the time that still leaves you 500 homes to win on!
Since it’s clear that it’s not an issue of inventory, then it simply becomes an issue of disposition. A more logistical question than anything.
What Is Your End Goal?
Starting with “The End in Mind” and planning out what you are attempting, your next step is clear. You must now determine how much time you have to devote to your plan of “wholesaling” houses. According to your question, you are looking to get business for the next three months. This to me translates to what I call “Now” business.
This is extremely convenient for you since the only people you want to talk to anyway would be motivated sellers!
In Chapter 5 of “The Red Pill Sales System Book” (Lead Generation… By Any Means Necessary!) I outline at least 10 different ways that you can obtain free business leads. While some of them may not be appropriate for your situation (Bandit Signs) that doesn’t mean you can’t use some of the other powerful ways!
Since you are a Realtor®, and you are specifically heading back to the States when you return, you are not creating systems for a long term business overseas like you would if you were permanent. In this case, you are looking for things that you can do now, to create business with the intent to close quickly.
The biggest challenge you face is not inventory (it’s available) , nor goal (you are there temporarily), but disposition. What do you do with it once you get it?
Since I assume you already have your copy of “The Red Pill Investor Sales Book”, I would direct your attention to page 89. What you are looking for is the 15 Step Action plan for you to go from “Zero to 25 Transactions!” and have you look at it again.
For those of you who haven’t purchased the book… yet…(A little assumptive close for you) then understand that the hardest part to selling property remotely isn’t locating it. It’s not securing it. It’s what you do with it once you find it and secure it! I would definitely follow the 15 points in that book. However I do have some specific ideas in addition to that.
What I Would Do.
Since you are a Realtor®, and your trip is short term, I would be looking for a few things. First, I would look for motivated buyers and sellers in the market where I live. Since you are a Realtor®, and unless you live in a castle in London you will definitely have access to the Internet, and therefore MLS.
Since I would have access to MLS, I would call Expired and Cancelled listings approximately 3:45 – 4pm local London Time. As it is 8 hours behind Los Angeles, It is perfect time for me to be prepared for the expired listings using The Red Pill Sales Scripts. That will be approximately 7:45 am to 8 am. They would be my first contacts.
Secondly, I would contact my Sphere of Influence. Let them know that you are looking to buy property, and use our scripts to help guide those conversations.
Third, I would contact my local title company (if you are in California, your title officer will be happy to do this) and have them search for homeowners who own property in California who live in London. Get that information and then contact the ex-patriots in London while you are there to introduce yourself, and discuss conditions “at home.” Many times, these conversations will lead to future business as well.
Fourth, create Craigslist Ads as I described in “The Craigslist Report”. Don’t do it like everyone else does. “We Buy Houses, Any Condition, 555-1212” is the biggest waste of space on an already overcrowded Internet space. Advertising on Craigslist would be the first place I would go to create incoming calls.
Fifth, I would avoid bidding on HUD Homes when you are new, much less when you are virtually wholesaling your business. Bidding on HUD Property can be a profitable way to make money, or a fast way to lose money since as an investor, you are seldom able to get your money back. If you were going to do that, I would recommend point #7 of the “Zero to 25 Transactions” Plan. Look for M&M’s on MLS. As an agent, you have a unique ability to kill it here with little competition from other wholesalers.
You can flip MLS homes. You just need to know how! MLS and other homes are just a few of the ones that you could do. Now of course, you could do silly things like direct mail, or pay per click, but why would you? There are a ton of free leads available.
Over The Phone Presentations
There will come a time when you will most likely need to make an over the phone presentation . In which case, that is no worry! The scripts are exactly the same. It is simply your mindset that makes you believe that you need to see the house! I can’t tell you how many times I have sold homes without ever seeing them.
Obviously, at some point, someone needs to see the interior of the home. However for the purposes of your question, you need to get really good at determining motivation. If you are going to work in your hometown, or virtually from the beach at some point, you will want to establish relationships with local people you can trust in that area.
While the specifics of how to create an A-Z plan of what to say would largely be covered by “The Red Pill Investor Sales System” Book, I believe that if any practitioner wanted to practice virtually, all you would largely need to do is to get very clear on their motivation.
The more motivated they are, the more you can do with the prospect, and the more forgiving they can be! I like to call that “head of lettuce business”. That’s the kind of business you will see people proudly proclaiming checks on Facebook that they closed. That type of business requires no skill. Unfortunately, it only makes up about 1/3 of the available properties.
The less motivated they are, then conversely, the less you can do. So in my opinion, it is best to become extremely good judges of motivation.
What To Do Once You Got It?
Well, that largely depends on the type of deal you have. You could always refer that business to someone in that area who specializes in it for a referral fee. (Since you are a Realtor®, you can do that!). You could always get it under contract and look at it virtually with someone else going through with a camera (your end use buyer perhaps??) But no matter what you do, you must DO something!
As always, I appreciate your questions! This one is particularly stimulating because it makes you wonder, what would you do if you couldn’t work for three months? What if you wanted to take that 3 month cruise around the world? How would you do it?
I’m sure our listener would love to hear your thoughts too! Forum, what would YOU do if you had to wholesale while overseas?