Today, Brian and John talk about their experience in "wholetailing". This strategy involves buying a property (typically with cash) and listing it on MLS almost instantly. Once Brian and John had the funds to make these kinds of deals, they found it made much more sense because of the abundance of exposure that MLS listings receive. The guys go into detail about why they prefer wholetailing and share stories from their top 3 properties that they have used this strategy on in 2018. They provide tips on making these deals and how you can get involved even if you don’t have enough cash up front.
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Covered Topics:
- Reasons that wholetailing is more lucrative than wholesaling.
- Three properties that Brian and John have wholetailed this year.
- Advice for marketing and getting the required cash to make these deals.
Show Notes:
- 01:54 – Recent happenings.
- A Facebook contest that Brian and John held for their tenants.
- Closing a twelve-property refinance.
- The results being seen from sending out 12,000 mailers.
- Forecasting for the upcoming year.
- Books being read by Brian and John and their entire staff.
- 08:09 – Wholetailing.
- The process of wholetailing and why the guys find it better than wholesaling.
- Learning the criteria of buyers and approaching them before purchasing.
- A property in which the guys thought they knew the perfect buyer for.
- 12:03 – The first property that came in through an absentee mailer.
- Receiving the call and sending a contractor to check out the property.
- The price that the guys paid and their estimation of work that needed to be done.
- A lesson in automating and delegating.
- 14:24 – Another lead in the same neighborhood.
- The property having tenants but being in very poor shape.
- Selling it to a company that was easy to work with.
- A contact of the guys that only buys in a certain neighborhood.
- 17:09 – A third property that the guys wholetailed.
- The cleaning of the property revealing more problems.
- Getting a surprise amount of attention when posted on MLS.
- Advice for getting loans from hard money lenders.
- 19:57 – A wrap-up of wholetailing.
- Utilizing absentee mailers.
- More benefits of wholetailing and getting higher offers through MLS.
Topic Takeaways
- Wholetailing has several advantages over wholesaling.
- The realtor fees that you must pay to get your properties listed on MLS are negligible compared to the increase in offers.
- Using mailers is still an effective strategy to acquire leads.
Tweetable Quotes
“Don’t buy weird… That’s not to say that there’s not a buyer for that house, but typically it’s going to take a lot longer.” (Tweet This!)
“We hate throwing a lead away, but at this time of year and this time in our career, we want to be careful with the resources that we have and make sure they’re available for every deal that comes along that makes sense.” (Tweet This!)
“If you’re currently wholesaling properties and have an okay credit score, you can go to some of these hard money lenders… They’re not as much looking at your credit as a person, they’re looking at the value of the house.” (Tweet This!)
