The Ultimate Guide
To Real Estate
Investing

Real estate investing, and wholesaling specifically, has its own language. From “double closing,” “earnest money,” and “option fees” to “skiptracing” and “assignment contracts,” there’s a lot to learn. Get familiar with these terms, and what they mean so you sound like a pro from your first deal.

You are only as successful as your team. You need to develop a full-stack team of industry partners like lenders, title companies, and agents that you can leverage again and again over a long-term relationship.

Finding motivated sellers and leveraging strategic outreach tactics is one of the most valuable skills you will need in this industry. There’s no deal with no assets, and there are no assets without sellers.

On the flip side, you won’t make any money at all if you don’t have a reliable source for buyers who are ready to make a purchase. We leverage at least 15 different strategies for capturing both motivated sellers and money-ready buyers.

From searching county records and foreclosure lists to probate listings and evictions, there’s opportunity everywhere, no matter the state of the housing market.

Negotiation is an art form that is directly connected to your knowledge of how to engage with people. You need to develop the skills and tactics for how to talk to sellers, investors, and buyers. You need to know what to look for and how to build rapport with your prospects.

Once the conversation gets going, you have to make the right offer to the right person. Create a deal structure with favorable terms and clear contracts to seal the deal.

There is a wide range of tools you need to streamline your process and track your progress and contacts. From software like Propelio to property repairs checklists and marketing tools, work smarter, not harder, by leveraging what’s available.

Once the deal is signed and you have earnest money on the line, what happens next? There are assignment contracts and closing processes that must be tied up before you can collect your fees.

You need a reliable support system of contractors, lenders, agents, and investors who are deal-ready and willing to work with tight deadlines and budgets. Get to know the providers in your market and establish connections. Build into these relationships and get ready to make an impact on your market together.

We’ve talked about looking for distressed properties, properties with tax liens, and properties in foreclosure. These are the places where you need to be on the lookout for quick, profitable flips that don’t drain your time and funding.

You need to KNOW your market like you know your favorite restaurant menu. You need to be able to identify trends, keep apprised of new listings, regularly scour the foreclosure listings, and stay connected with the top-performing agents in your area.

You need a reliable support system of contractors, lenders, maintenance workers, and property managers that you trust who can support the running of your asset. Get to know the providers in your market and make meaningful connections, especially if you’re investing in a market outside your daily radius.

The housing market and the rental market are irreversibly linked. When housing goes up, so does rent. The same is true when it goes down. Stay abreast of the rental market trends to remain profitable

Whether you’re using handy software or the door-knocking method, lead generation is a never-ending effort in real estate. Get in deep with your property managers who have waitlists of people looking for a home. Regularly check county records and your off-market sources for properties that may be a good match.

When using seller financing, the current property owner becomes the bank and gives you the loan. This is also what’s known as a “bond for title” agreement, where you take over the deed and make payments directly to the previous owner.

This type of deal is when the seller keeps the existing financing in place but signs over the deed to the property. You begin making the payments on their behalf. There’s no down payment, no new loan, no fluctuating interest rate, and no credit check on the buyer.

This is when you, as the investor, will take over the remainder of the homeowner’s loan, usually in exchange for the deed and, in some cases, a large down payment that returns some of the equity they’ve earned.

There are a myriad of sources for identifying and connecting with motivated sellers that many early-stage real estate investors have never heard of.

Here are some of our favorite go-to sources that we use again and again:

• Real estate agents and brokers
• County records
• Property tax liens
• Foreclosure announcements
• Other agents and wholesalers
• Skiptracing
• Cold calling
• Direct mail campaigns
• SMS Blasts
• Door knocking

While there is some sweat equity required, work smarter, not harder to collect leads. From skip-tracing software and SMS marketing platforms, streamline your process for outreach and play the numbers game.

Similar to residential off-market deals, many of the same tactics will work here but with a different focus. For a quick start, look for official records related to business closures and bankruptcies.

In addition to the location and outreach strategies mentioned above, get connected with local commercial brokers and real estate agents to keep your finger on the pulse of upcoming opportunities. Build relationships with these industry partners and establish a partnership that is focused on long-term possibilities.

Leverage all the possible financing options – transactional funding, hard money, private money – any source that can be ready to move quickly will be your best option in this market.

Before you ever send a letter of intent or knock on a door, you have to know how to talk to potential sellers like actual humans and know what to look out for.

In order to build rapport with sellers, you need to create a genuine connection on some other topic. Ask questions and engage in meaningful conversation. Hear their story. This will also help you identify any potential sources for their motivation

You have to strike a perfect balance between helping others and making money. If one motivation begins to outweigh the other, you’ll end up losing money or rapport. It boils down to asking the right questions and not focusing too much on price while still closing on a profit.

When beginning negotiations, you need to dig into what their real problem is and present a viable solution. You may even help them buy something else.

Who you work with is critically important to the success of your business. You want to find someone who is just as dedicated to winning as you are and just as willing to put in the work.

Finding someone who is also willing to share the costs and the risks of your investments with you is one way you can immediately double your impact. Double the contacts. Double the team. Double the leads. This is one of the strongest strategies to scale your real estate investment business.

If you’re in the real estate industry, you’re in the people business, not the property business. At every turn, a truly successful real estate investor is focused on building relationships and nurturing contacts.

When you bring a JV partner in on a real estate deal, you have to structure it differently. They’re another piece of the puzzle bringing their own skills and goals to the table. Creating win/win deals with your partner sets you up for a partnership poised for longevity.

They’re out there, and they’re looking for profitable real estate opportunities. If you can position yourself as the one who brings them killer deals, you’ll have a partner for life.

Investors come with money, but they’re people first. They have their own goals and priorities. Build into the relationship like they’re a business partner and friend you want to keep around

This can be a daunting undertaking, but with the right approach and the right strategy, you can ace the pitch every time. It’s all in how you pitch it, and we’ll show you how we do it every single day.

A deal that closes is a deal that meets the unique needs of every party involved. It’s an intricate process but something you have to consider with every deal.

Investor financing falls into a different category from traditional financing and requires a complex legal agreement. Consult with legal counsel to design your agreements.

The Securities and Exchange Commission (SEC) has a long list of rules and regulations that you’re required to adhere to. It’s important to know what they are and how you need to adjust your process.

You want your investors to love working with you so that they’re always ready for the next project. Keeping them in the loop and profitable are the best ways to keep them happy.

Find people who may be in a tough financial situation or owners who are cycling through renters, or someone whose property has suffered severe depreciation.

Once you’ve identified them, it’s time to reach out. This could be via SMS message, no-ring voicemails, door knocking, direct mailers, or any other outreach method.

Come to the table prepared with your bottom-line number and the negotiation skills you need to seal the deal. Solve the seller’s problem and create meaningful connections along the way.

Implement a streamlined process using top tech resources and software (Propelio, Skip Genie, etc.) to capture, organize, and contact your leads every day, all day.

These sources are your community banks, mortgage lenders, and credit unions that are difficult to qualify for and come with a host of limitations. However, they’re often the most common source, and one many people are comfortable working with.

Money from individual investors, corporations, or investors is one of the most reliable sources for financing residential or commercial real estate investments.

This approach can be easy to accomplish but is often plagued by other issues. It’s important to delicately thread the needle of business and relationships and navigate this type of financing without sacrificing your support network.

This is another quick-cash strategy. Transactional funding operates as an alternative type of short-term loan that allows you to buy and sell real estate from the same funding source without risking your capital

Loans secured by real property are what’s known as asset-based lending, rather than the borrower’s credit. This is considered a high-risk loan that could be the instant cash injection you need to close a deal or if a deal goes south.

The DSCR is the metric used to measure how profitable an asset will be or if it will make enough money to cover its expenses. This calculation should be done before the deal ever closes

Once a property is in your investment portfolio, even if it’s a single unit, it has to be properly maintained and cared for to ensure you get a return on your investment.

If we’re honest, real estate investing and managing a future rental property is a numbers game. You, your investors, the bank, and all the involved parties want to know those numbers and ensure they’re accurate.

What improvements are required in order to turn a profit? What improvements are nonessential? Get the most out of each dollar you pour in by pouring it only into the essentials.

If you’re hiring a property manager to manage the asset for you, you need to establish a good working relationship and watch out for any red flags. If they’re too busy for you, have high eviction rates, or don’t understand your market, choose another partner.

It’s all about the profit, right? That’s why we’re all here. If a property is under asset management, it will have ongoing costs. Find creative ways to manage expenses to keep your margins as thick as possible without sacrificing the property value.

If you’ve built up multiple properties and it’s going to be a handful, you’ll need to oversee and manage a team and establish streamlined communications and accountability processes to preserve money.