How to Wholesale Houses on Zillow! *STEP BY STEP*

Summary

In this 'Hold My Hand Wholesale' episode, Richard Taylor revisits the basics of wholesaling houses on Zillow. He outlines his company's on-Market division, focusing on double closing deals and converting them into off-Market listings using the Taylor Method. Richard discusses six active deals, revealing strategies for structuring cash and creative finance offers. He also previews a new website, 'Buy Box Cartel,' simplifying the process of finding deals that fit hedge fund criteria, and encourages joining his Discord community for further insights.

Takeaways

• 🏘️ The video discusses how to wholesale houses on Zillow, focusing on the current favorable market for such deals.
• 🙋‍♂️ Richard Taylor, the host, has shifted focus towards creative finance and selling to hedge funds but is revisiting basic wholesale topics due to audience demand.
• 💼 Richard introduces a new 'on Market' division in his company that double closes deals, using transactional or 'day' funding to purchase and quickly resell properties to hedge funds.
• 🔑 The 'Taylor method' is mentioned for converting on-market deals into off-market listings, which is a key strategy in the wholesale process.
• 📈 Richard shares details of six current deals, including one that failed inspection, and the profits expected from these deals.
• 🛠️ The use of a calculator, soon to be replaced by a website called 'Buy Box Cartel', is highlighted for determining the right properties to wholesale based on hedge fund criteria.
• 🔍 The process of searching for properties on Zillow is demonstrated, including filtering for specific criteria such as price, year built, and number of bedrooms and bathrooms.
• 📝 Importance of checking for a two-car garage, school scores, and public sewer systems when evaluating a potential property for wholesale.
• 💰 The video explains how to structure both cash and financing offers for properties, including considerations for rehab costs, rental estimates, and mortgage history.
• 📈 Richard demonstrates how to calculate cash-on-cash returns and the importance of achieving a minimum 12% return for a profitable deal.
• 📲 The power of the Discord community is emphasized, where members can earn money by sharing property links, and there's a monthly competition with rewards like an iPhone.

Q & A

What is the main topic of Richard Taylor's video?

The main topic of Richard Taylor's video is about how to wholesale houses on Zillow using the Taylor method and discussing some of the deals his company is working on.

What is the 'Taylor method' mentioned in the video?

The 'Taylor method' refers to a process of obtaining transactional or day funding to purchase a property for a short period and then immediately reselling it to a hedge fund, specifically applied to on-market deals that are converted into off-market listings.

How many deals is Richard's company working on this month according to the video?

Richard's company is working on six deals this month, which total over fifty thousand dollars in profit.

What is the role of the calculator mentioned in the video?

The calculator mentioned in the video is used to determine the appropriate offer price for properties that fit specific criteria set by hedge funds, which are referred to as 'buy boxes' in the script.

What is the significance of the website that Richard mentions will replace the calculator?

The website will simplify the process of determining the appropriate offer price for properties. It will accept a Zillow link and automatically suggest a price and the corresponding buy box criteria the property fits into, making it more user-friendly than the current calculator.

Why does Richard draw a 'donut shape' around Atlanta in the video?

Richard draws a 'donut shape' around Atlanta to exclude inner city properties from the search. This is because the specific buy box criteria for Atlanta does not want inner city properties, focusing instead on the outskirts.

What is the importance of the property being 'free and clear' according to Richard?

A 'free and clear' property, meaning one without debt, is important because it allows Richard's company to not only give a cash offer but also structure a creative finance offer with a potential six-figure down payment using the morbi method.

What is the strategy behind making offers on properties that are already under contract?

The strategy is based on the common occurrence of properties falling out of contract due to various reasons like buyer qualification issues, property issues, or appraisal problems. Being the first to offer on such properties can give an advantage if the contract fails.

What criteria does Richard use to determine if a property is a good deal for wholesaling?

Richard uses several criteria including the property being on the outskirts of a city, having a low price point, being built after 1995, having at least three bedrooms and two baths, and not being on a septic tank (private sewer).

How does Richard approach structuring creative finance deals for property acquisition?

Richard structures creative finance deals by determining the property's rental value, estimating rehab costs, and setting terms such as down payment, interest rate, and amortization schedule to offer the property owner a compelling deal that can be profitable for both parties.