This is a continuation of “The Great Escape” interview with Eric Thiele. Eric is working with Sean Terry and Flip2Freedom.com to learn how to start up a successful wholesaling business. In this section, Sean and Eric discuss how to find buyers.
Sean: Here in Phoenix, there are some high cash transaction areas that are all within two, three, or four different ZIP codes. The price points are 75,000 and under. When we deploy marketing, I don’t want to market houses that are $200,000, $300,000, or $400,000 that are off in another city. I want to market exactly what the buyers are buying. That’s the information that we want to find out.
If I was going to fly to Austin that would be the first thing I’d do. I’d get with a realtor and find someone who can provide that data. That would give me a good intel of what the buyers are buying. First, assignment number one is to find that realtor and have them deliver that data because what we’re going to do is analyze that data. Next week, we’re going to figure out what’s going on and deploy marketing correctly.
Number two is to go start talking to buyers. The best place to find buyers that are a prototypical buyer is at the county auctions. What happens is during a foreclosure process, the banks—if someone is not paying on their mortgage and it goes into foreclosure—take it to an auction process and auction it off to the public. Now, typically what happens is the buyer has to come in with a cashier’s check, and they have to close within 24 hours. Typically, they buy the property by a drive-by or sight unseen. That’s the perfect buyer. If we’re going to sell our properties, we need to get to these buyers that will close quickly.
What’s great about it is these guys will close in seven days or they can close in two or three days. I’ve had properties where I literally got in contract on a Friday, sold it over the weekend, and closed by a Wednesday, which is phenomenal. Do you have any idea where the foreclosure auctions take place in Travis County?
Eric: I’m embarrassed to admit, no. I know where the courthouse is, but I’m not aware of what the schedule is of foreclosure auctions.
Sean: Don’t be embarrassed, please, because I didn’t know either. That’s not a typical thing that people say, “Oh, yes, it’s at 12:00 at so-and-so courthouse.” It could happen at an attorney’s office or it could happen down at the courthouse. Most people listening, that are just getting started, don’t know that information off the top of their heads.
Anyway, assignment number two is, we want to locate and find out exactly when the auctions are happening, where they’re happening, and we want to go attend one of the auctions. We’re going to network with buyers. What happens is, usually here in Phoenix everyone is just standing around. They’re all just standing around; they’re talking, and waiting for their property to come up so they can bid on it. Everyone is just talking about the market and what’s happening. What we want to do is build a relationship and start talking to these buyers.
See “The Great Escape Episode 1″ Part 5…
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