Wholesaling With Real Estate Agents
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 establish a relationship with a realtor and what their role is in helping you succeed.
Sean: What we’re doing on this show is, you guys—the hundreds of thousands of people listening to this broadcast—get to chime in, follow along, and listen to Eric’s progress along the way. The challenges, everything that happens, and report back. I’m going to give him assignments along the way and watch his success unfold.
First thing we have to do is analyze his market. You want to work in Austin? That’s where you are primarily doing your wholesaling?
Eric: Yes, I spend most of my time in Austin. The market is a lot hotter in Austin than it is in Chicago. That’s where I’m going to concentrate my efforts. Obviously, over the course of time, when I get to the point of rinse-and-repeat, obviously, I should do it in my backyard here in Chicago, too.
Sean: Right, the cool thing is those are both excellent markets to be in which is great. You’re going to do phenomenal.
So now, the first thing we have to do, breaking into any market, is figure out exactly what price points buyers are buying, so when we employ marketing—which we’ll be doing in next week’s episode—we know what time of marketing we can deploy so we can get the biggest bang for the buck. The first thing is to find a realtor that can provide data for us. Do you have any realtors? I know you’ve been a broker before, but do you have relationships with any realtors there in Austin, at all?
Eric: The wholesaler that I bought my current two fix-and-flip properties from, they are operating as a wholesaler. That’s one real estate company that I can work with. I have three other realtors that I’ve started developing a relationship with, but haven’t gotten real far. Basically, I’m interviewing realtors to list my two properties with now that I’m flipping.
Sean: Perfect, the first thing we want to do as assignment number one is to find a good realtor—someone that does not have a full established business, but someone that is brand spanking new, just getting started and has access to MLS that you can build a long-term relationship with. Out of these realtors, whether it be the wholesaler one or one of the other guys you’re interviewing, we want to find and have them provide data for us. The first thing we’re looking for is the cash transactions that have happened in the last 90 to 100 days in your county. What’s the county there, again?
Eric: The county in Austin is Travis County.
Sean: Okay, Travis County. What we’re going to do is have the realtor pull all the cash transactions that have happened in Travis County in the last 120 days. They can deliver the information in two different formats. One is they can download it and provide it in an Excel document, which I like, because then you can sort it by price point, and you can sort it by location. Or they can deliver it via link, and in that link you can open it up and see a map of a consolidation of properties.
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