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5 Steps To Getting Started Wholesaling Houses

Home » Blog » Sell Your House Fast » 5 Steps To Getting Started Wholesaling Houses

My first ever video post. First take… you might be able to tell. They can only get better from here. 🙂 I hope you enjoy it.

In this video, I cover 5 simple steps to getting started wholesaling houses.

This is the order I feel people should focus on when just beginning.

Step 1: Find Serious, Cash Buyers

Step 2: Find Out What They Want In A Deal

Step 3: Find Them Deals That Meet Their Criteria

Step 4: Put The Deal Under Contract With The Seller

Step 5: Assign The Contract To One of Your Cash Buyers

My intentions are to start adding more videos to the site which could include rehab walk-throughs and the like.

Thanks for visiting,
Danny

Bonus: Click Here to Download Danny’s Top 5 Motivated Seller Marketing Methods Guide pdf that will show you, in awesome detail how to use 5 different marketing methods to generate great leads consistently.

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Comments (45)

  • Paul Grgurich

    Danny – Exellent work, nicely done…I like like the format that you presented with writing on the board. Easy to follow, easy to understand…
    I’m ready to hit the streets!!!

    Thanks for your help, Paul

    • Danny Johnson

      Thanks, Paul.

      Just glad I didn’t stutter too much. 🙂

  • Iyabo

    This is so GREAT!!! thanks Danny

    • Danny Johnson

      Thanks, Iyabo.

  • Brandon Turner

    Well done, Danny! Love the video format. Definitely looking forward to seeing more of these!

    • Danny Johnson

      Thanks, Brandon.

      If I shot it again, I would move the camera a little more to the left. Just glad it didn’t take 20 takes. 🙂

  • Robin Tolleson

    Very impressive and easy to follow along while working!! loved it Thanks!!

    • Danny Johnson

      Thanks, Aunt Robin.

  • Carlos Reinoso

    Great Job Danny. I like that you aren’t totally comfortable in front of the camera, it makes you look more Authentic and credible in my book. Also, no one has explained Wholesaling as well as you in your website and in now in this video. I’m looking forward to more! Keep up the Great Work, a lot of us Newbies are watching, listening, and appreciate you taking the time to educate the rest of us.

    • Danny Johnson

      Thanks for the compliments, Carlos. I’m glad you found it informative. Looking forward to doing more videos. I think it’s a great change to the blog.

  • Brandon

    Nice work, Danny. Never easy to put yourself out in public. I do have a question related to step 4 and 5…please let me know if there is a better place to ask questions. But it seems like there is a lot going on “behind the scenes” from when the property is put under contract to when the contract is assigned. What happens if you put a property under contract and are unable to assign it…you noted there was an earnest money deposit at the title company. Do you forfeit? Thanks.

    • Danny Johnson

      Great questions, Brandon.

      There is a lot going on behind the scenes during that phase, sometimes. If you have someone that gave you the criteria they used to determine a deal, and you contracted to buy a deal meeting that criteria, there isn’t much going on besides telling that buyer you have a deal for them. You would schedule to show them the house (if the sellers allow you to put a lock box on the house to show partner and/or contractors this is much easier) and let them tell you whether they want it or not.

      If you don’t have a buyer interested, you must then find one. Hustle. Hustle. Hustle. You need to get that deal in front of as many cash investors as possible. To go into depth for that would take several more videos/posts.

      If you don’t end up finding a buyer, and you reduced the price as low as you can, you will have to forfeit your earnest money unless you had an escape clause in your purchase contract. Escape clauses are something to the affect of, “This agreement subject to further inspection of the property.”

  • Michelle

    Thanks Danny for providing this valuable information (in addition to all the great content on your website)! I too appreciate the time you take out of your busy schedule to educate others.

    • Danny Johnson

      Thank you. I really appreciate it.

  • Shaine

    Good job, Danny! Thanks for “hanging it out there” and getting the job done. The video is great and I like the use of the whiteboard. Really makes me want to take notes and then take action. Thanks again.

    • Danny Johnson

      Thanks, Shaine.

      I’m looking forward to using the whiteboard more. I’ve had it up for a couple months and need to use it more.

  • Lubasha

    Nice work Danny! Full course on wholesaling in it’s essence within minutes. And your presentation is clear and easy to comprehend.

    • Danny Johnson

      Thanks, Lubasha.

      It’s good to get feedback on whether the points came across clearly. Thanks again.

  • Tom Tarrant

    sweet Danny. Great seeing you on video, after all these years I feel like I know you now; )

    • Danny Johnson

      Hey, Tom.

      Funny how that works. When people that have visited the blog for a long time talk to me, they usually tell me how weird it is because they feel like they know me so well. We really put ourselves out there with our blogs.

      Wish we had a chance to hang out when you were still out here in San Anto.

  • Mike

    Great video Danny. Congrats on your first one. I like that you tell new wholesalers to stay away from REO’s because it is more difficult. That is 100% accurate as you can’t assign bank owned properties the typical way and in some cases have to put down 10% deposit.
    Also there is much more competition on REO’s so great advice!!!
    Anyone looking to wholesale needs to follow you.
    Keep up the great work!

    • Danny Johnson

      Thanks, Mike.

      It’s best to start with the easier (relative term) ones to wholesale. Less of those stressful, “what the heck am I going to do about that?” moments. 🙂

  • Lisa Young

    Great video,fun and entertaining at the same time learning in a better way. Glad I watched this video.

    • Danny Johnson

      Glad you liked it.

  • Doug Haisten

    Great video Danny,
    From the time I first started following your blog when you started the 34 wks I look forward to your posts and I model most what I do with what you have posted. I’m sure this all takes extra work so I really appreciate what you do.

    Doug

    • Danny Johnson

      Thanks for following along through all of it, Doug.

  • Steve Grande

    Enjoyed the way your information was presented! You made a complicated subject easier to understand. Also, the whiteboard forces one to watch your writing on it, and the connection made between showing each point and talking to your audience helps you to understand the subject. Well done!

    • Danny Johnson

      Hello, Steve.

      Thanks for letting me know that it was helpful in this format. I plan on doing more of these videos. Hopefully also get some out in the “field” at some ugly houses.

  • Mister Gardner

    dear danny, if you do not own the house but have it under contract to buy how do you show the house to the buyer without the actual seller being their

    • Danny Johnson

      Typically the houses are vacant. When they are not, you have to handle it as one of your associates or a contractor coming by to see what repairs are needed.

  • Preeti

    Lovely points, Very helpful

    • Danny Johnson

      Thanks, Preeti.

  • David Lathrop

    Thanks for the video good job!
    My question is about contracts..I have heard you can get them at office supply stores but can be very generic. I have found sites like Rocket Lawyer and Law Depot that have a variety of contracts and forms that seem to be fitting. I know a good property Lawyer can put these together for you and I need one on my Team but since most of us start out with little or no money paying a Lawyer for contracts may not be within a budget. Have you had any experience with online sites or heard any opinions?

    Thanks again keep the videos coming great stuff!

    • Danny Johnson

      David,

      A good contract is very important. I personally feel paying for them to be done properly (by an attorney that knows investing) is well worth it.

      That said, I have mine contracts and I don’t even remember where I got them.

      Most courses provide contracts and I even have some in the Resources section of the site. Hope they help.

      Danny

  • Mike Scott

    Thanks for the videos and other resources! I have a wholesaling question. I normally do rehabs that I finance through a local bank. I have found a vacant house that has the potential for making much more than the average return that is waterfront in a nice neighborhood. I would never be able to buy and rehab it with the financing I have, the price would just be too high. I would like to wholesale it instead but I am concerned that a savvy seller might want proof of my ability to pay and close on the property before signing a contract. How would you handle a situation like this?

    • Danny Johnson

      Hey Mike!

      I don’t recall ever having had a seller (other than a bank) ask for proof of funds. I wouldn’t worry about it. If they do (slim chance), hopefully you have a buyer that would be interested in it that could provide one for you.

  • Rohan

    Danny Thanks for the info. This is really great information. It’s now given me the confidence now to get started.
    Thanks

    • Danny Johnson

      Great. Thanks, Rohan.

  • Eve

    Hi Daniel ,

    In one of your blogs, you mentioned you used to spending lots of time designing magnets and pens. I am wondering do you mail them with your direct mailing? Do you receive good response from it singe you have your company info printed on it?

    • Danny Johnson

      Hello, Eve.

      I used to send magnets with my mailings. I don’t recall getting any better response. Something like that might allow the recipient to still have your contact info later if they don’t need it now. It’s a good idea but I wouldn’t spend a whole lot of time on it or use it as an excuse to put off doing mailings.

  • Jonathan Jimenez

    Awesome video. I love the breakdown.

    I am about to get your, “Top 5 Motivated Seller Marketing Methods” I plan to read while gaining a buyer’s list!

    Step by step.
    Thank you,
    Jonathan

  • zigmunt smigaj

    Hi Danny, Great video! Makes me want to jump into the course you offer right away to learn more… whiteboard rocks, good use of visuals. Questions:

    1. You dont go through a real estate agent for these I assume, in the past I had to always show proof of lending letter to a agent before they really wanted to spend time showing houses and making offers… with this process you simply need to have enough for the earnest money and make a direct offer to the seller….correct?

    2. How much do you use for earnest?

    3. Do you use Zillow to compare home values and other market data?

    4. New construction… ever considered wholesaling a preconstruction property, I’ve heard that builders need so many pre-sales to get financing for the completion in certain cases. Or considered buying the model home and renting it back to the developer, this way they have cash in hand from a sale and still get to use the model home to show buyers.

    Looks like having a good network of invester/buyers is important otherwise you will lose the earnest and waste a sellers time….unless of course you decide to flip yourself, which makes sense that you wouldnt put a property under contract unless it was a good deal in the first place.

    Kindly – Zig

    • Danny Johnson

      Zig,

      To answer your questions:

      1. You dont go through a real estate agent for these I assume, in the past I had to always show proof of lending letter to a agent before they really wanted to spend time showing houses and making offers… with this process you simply need to have enough for the earnest money and make a direct offer to the seller….correct?

      Correct. All you need is the earnest money if you are doing a contract assignment or a double (simultaneous) close.

      2. How much do you use for earnest?

      Usually between $10-$25. If the seller insists on more, which hardly ever happens, I will put $100.

      3. Do you use Zillow to compare home values and other market data?

      Negative. Zillow is not very accurate in Texas as we are non-disclosure state. This means that sales prices of homes are not reported and made public information.

      4. New construction… ever considered wholesaling a preconstruction property, I’ve heard that builders need so many pre-sales to get financing for the completion in certain cases. Or considered buying the model home and renting it back to the developer, this way they have cash in hand from a sale and still get to use the model home to show buyers.

      I have not considered those options. If the numbers made sense, I definitely would.

      Looks like having a good network of invester/buyers is important otherwise you will lose the earnest and waste a sellers time….unless of course you decide to flip yourself, which makes sense that you wouldnt put a property under contract unless it was a good deal in the first place.

      You hit the nail on the head that you wouldn’t put it under contract unless it was a good deal. Sometimes it might be hard to determine if it really is a good deal and that is when building relationships with other investors that you trust helps a lot.

  • michelle

    Hi Danny,
    Thank you for all the information so far. My question is where is the best place to find investors and how would someone like myself who is just starting out go about being taken seriously by investors.

    • Danny Johnson

      Hello.

      The best place to find investors is by calling all the ‘we buy houses’ type advertising, your local REIA (real estate investment association) groups and driving around finding houses that are being rehabbed.

      The best way to be taken seriously is learn the fundamentals so that you aren’t asking questions that are easily learned and, most importantly, start taking action. When you have a lead that you can discuss with an investor, you’re going to get their attention. Really as simple as that.

      Danny

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