The question that Zack Childress poses on every podcast is how do real estate investors build real wealth and freedom without access to millions of dollars in capital? His mission is to help you find the answer.
It’s an excellent time to be involved in real estate. Create, stabilize and maintain your business. Those 3 steps lead to the 4th, which is to protect your business. Get started on these steps NOW.
Moving to today’s topic… if you’re a buyer, you are likely going to be buying from wholesalers. Zack wants you to know that a lot of wholesalers are new in the business and not totally sure about it.
If you’re buying from a wholesaler, step 1 is buying the contract, not buying the house. Owning the contract gives you the option to buy the house.
If the wholesaler doesn’t want to show you the contract, that’s a problem. You absolutely must see it. The contract tells you whether the house is free and clear. It tells you who’s paying what costs.
The contract is the product you’re purchasing. It is your right to examine the product to be sure it’s what has been represented to you and that it’s a product you actually want to own.
If you’re a wholesaler, please get educated. You could lose your assignment fee if you aren’t clear on your role. The buyer is getting only the contract in step 1, and you can’t expect him to buy it sight unseen.
Get the specialized knowledge that you need to succeed. Then learn how to execute that knowledge. Build your systems. Build your plan and execute it.
“Knowledge is not power. Implementation of that knowledge is the power.”
Watch and learn…
Listen and enjoy:
- Be sure wholesalers you deal with are seasoned
- Understand the buy side of a wholesale deal
- It’s a good time for acquisition
- Implementation is the skill you need
Mentioned in this episode:
- Reach Zack by phone: 707.247.4248
- Follow Zack on Facebook: Zack Childress on Facebook
- Zack’s free book: My First Deal Playbook
Download episode transcript in PDF format here…
So, the big question is this, how do aspiring real estate investors like us escape from the rat race and build real wealth and freedom without access to millions of dollars in investment capital and start to live the life that we know we deserve? This is the question and this podcast will give you the answer. My name is Zack Childress and welcome to Real Estate Investing Talk Show.
I will tell you today we had a couple of cool things going on today. I’m so busy right now guys. I can’t tell you how great this has been just being busy, busy, busy, busy, busy and here’s why. Because when you’re busy, you’re focused on growth, right? You’re, you’re making it happen. It’s when you’re not busy is when you start thinking about why everything is going wrong, right. Everything’s going wrong because you’re not busy. Well, you got to get busy. You got to get in the stream, you got to get in the game. You got to start making things happen and I am blessed that I am so busy and some people get stressed out when they’re busy. Well, I thrive when I’m busy. Like I actually produce more when I’m busy and I’m busy in all walks of it. I’m busy with my REIA. I’m busy with the REI educational platform with you guys. I’m busy with real estate investing, I’m busy with my kids I’m busy, but I love every minute of it, you know why? Because I love this business. I love everything about it. I love everything it does. I love the investing and the developmental side of it. I love the education and the developmental side of the education. Which development you into better investors? I love all of it. I love the REIA and what we’re doing locally with this thing. Like I just love this business and you couldn’t be in a better time in real estate than we’re in right now. Look, I’ve been doing real estate for 16 years, 10 12 years I’ve been educating. And if you’re not in the game right now, what are you waiting on? Like that’s the question. What are you waiting on?
Like if you’re not in it right now, learning and educating and putting the systems in place to grow your business. What are you waiting on, right? There’s three things. Now I know we’re going to get into our topic, but those of you that have been with me for two, three years watching these shows and hanging out with me, you know I’ve always got other things to talk about. So there’s three things I want to make you aware of today and my good buddy Keith, if he’s still watching this, this is absolutely something you’ve heard before too. I’m not going to say where, but you’ve heard it too. There’s three things with an ultimate four things you got to be thinking about when you’re creating a business, whether it’s in real estate, whether it’s in anything. You’ve got to think, the first three things, you got to create the business, you got to then stabilize that business and then you have to maintain that business. And if you haven’t started yet creating this business, you better get on it. You better get on it right now. Like this is the time to be getting in this business. Once you’re in it, now let’s start stabilizing it. Let’s create the systems, the legion, the marketing, the cash flow, stabilize it, then maintain it. Get people in place to run it for you. Get people in place to run it for you. That leads you the fourth thing, which is protected. You got to protect a business. If you don’t protect the business, nobody else is going to protect it for you. And that goes back to the business is your kingdom. It helps establish the freedom for your life. It helps establish the freedom for your family, but you’ve got to protect it. You got to protect it.
So all right, so look, here’s the deal guys, and some of you who watched this show you guys are wholesalers some of you are some of you are buyers, and if you’re a buyer, one of the things that you’re going to find that’s going to be helpful to you is buying from wholesalers. And there’s a lot of wholesalers out there in the market right now and they’re getting created daily and they’re coming into the market, not very educated. They’re reading a book that they bought for five bucks, six bucks or $18, whatever the case may be and now they want to run out and start doing wholesaling. And the problem is, is they don’t really know what they’re doing. And that’s the downside, right. Like they don’t really know what they’re doing and so they don’t understand what their process is as a wholesaler or what their real execution in what they’re selling, right.
First mistake is, is a lot of wholesalers don’t even really understand what the intent is and how to structure the deal with the seller correctly. The second mistake is that they don’t really know what they’re selling. So let me get clear on this with you. If you are a investor and you’re buying from a wholesaler, you are buying a contract, that’s what you’re buying. You’re not buying the house from the wholesaler you’re buying the contract from the wholesaler, which then gives you the ability to buy the house from the seller. Let’s get real clear on that. It’s what, it’s two stages, right. Stage one, I’m buying the contract from the wholesaler. Stage two I now have the control over the contract, so now I’m going to buy the house from the seller. I bring this up because of this. When you’re buying from a wholesaler and you say to the wholesaler, well, hey, look, I need to see the contract and the wholesaler doesn’t want to give you the contract or show you the contract, then what are you buying? You’re buying thin air. You’re buying a blanket that you can’t see. That’s like trying to go buy a car and them not wanting to show you the car, just pay us and then we’ll show you the car. You wouldn’t do that. Why would you do in real estate? Then what happens is we say that whole thing, hey, I want to see the contract. Well, and then the wholesaler says, well, I’m not going to show you the contract you’ll go around me right. Well, come on man. Let’s be clear what’s on the contract, the address? Well, I had to get the address anyways to do research. What else is on the, the seller’s name? What do you understand if I have the address, I can do some research and find out who the owner is of the property.
Like it’s, it’s mind blowing that they think that way. Here’s the other thing, if it’s a wholesaler that’s worried about somebody going around them or not really being ethical about the process, well then they need to go file an affidavit secure their position or a memorandum to purchase so they cloud the title. Like this is two things they could do so that the seller can’t go around them, it would cloud the title and you’d have title issues when it came time to buy it, you know, but you’re buying the contract. So let me be clear with you. If you’re buying from a wholesaler, don’t give any money to a wholesaler and sign any assignment agreement if you can’t see the contract. Because here’s why. When you sign that assignment contract, it states in there that you’re buying the contract as is and everything that’s in it you will abide by.
So if you’re buying it sight unseen, how do you know what they had in there? How do you know what language they use? Can they even assign it? Do they have the rights? Who’s paying what? Are you getting it free and clear of title? Like these are the things you have to be thinking about because you’re buying the contract. That’s why you got to see the contract. If you don’t see the contract, then what are you buying, right? What are you buying? And that’s the real question. If you’re a wholesaler, let’s get clear on a few things. Number One, get educated please get educated. You could lose five to $10,000 assignment fee because you just won’t get educated. You think you’re going to go read a $6 book and you’re going to become the next multimillionaire wholesaler and that’s just not the case. If you look at any highly successful wholesaler that’s built a business and built a team from this then you know that they’ve spent time to educate themselves.
As a wholesaler you’re not selling a house, let’s get clear. You’re selling your equal rights in a contract. So let’s think about that as a wholesaler. If I was selling a house to a buyer, is the buyer going to want come see the house? Yes. But instead I’m selling my equitable rights in a contract so is the buyer going to want to see the contract? Yes. So I can’t tell you how many times people have sent me messages and said, hey, I’m trying to buy from a wholesaler, but they won’t show me the contract. Well then don’t buy it. But it’s a good deal but do you really know it’s a good deal? Just because the numbers make sense don’t mean it’s a good deal. You need to see what the language is in the country. The language in the contract could kill the deal.
So you’ve got to see the contract, it’s very important. So if you’re watching this right now and you’re dealing with wholesalers, I’d like to hear your feedback. Like what are you seeing out there? Are you running into this scenario? How have you overcome this? Are you finding wholesalers that are sharing the contract with you? I mean, one of the things, if they don’t want me to see, look fine, white out the seller’s name, I could go right out and research it and find it out. But I mean, it doesn’t matter I don’t need the seller’s name. Do you understand? I’m not interested in the seller’s name. I’m interested in what is in that contract. That’s what I’m interested in because that’s what I’m buying. So when the question comes up, what are you really buying from a wholesaler? You’re buying the contract, you’re buying the contract, you’re buying the contract.
You guys, just, the message today was really getting it clear on what you’re buying. So if he, if you miss this, you need to go back and watch it again. What are you buying? Because ultimately it is a win win situation and that win win situation means that wholesaler can make money and you can make money if you build a team with them, you’ll work with them closely you engage with them you get on the same page with that wholesaler. Here’s the thing, if you’re busy in acquisition, which is what you should be, busy in acquisition, busy in acquisition, busy in acquisition, which means buying properties and you’ve got an army of wholesalers out there finding deals for you, I promise you the fee you pay them will be well worth it for you because you’re just so busy in acquisition mode.
You’re busy in acquiring and closing and acquiring and closing and running deals. Let them be the army out there to bring you deals, but get them on your page, get them on the same understanding of what’s going on. They’re selling a contract you’re buying a contract. The house as not even in the equation yet. Remember, it’s a two step process. If you’re buying from a wholesaler, the first thing you’re buying is the contract, which then gives you the right to then take step two, which is buy the property from the seller. So keep it busy, keep it moving. Keep you message close. Understand the goal. The goal is always three things. When you start a business, create the business, stabilized the business, maintain the business, and then ultimately protect the kingdom, right. Protect it, protect everything that you’ve created. Figure out how to protect it, keep it safe, keep it growing.
But more importantly, you got to remember protecting the kingdom. One of the things is the business the other side is the family. It’s you, it’s your health. Yes. Look, I went on this mission. I’m still on it. I’m still steadily getting healthier and healthier and stronger and stronger. Some things I’ve missed out on and I’m working on that, right. You guys know that I made the announcement to you a while back. So, but that’s part of your kingdom. Staying connected, keeping your mind right, keeping the focus right. You know, keeping yourself in that model growing. But always remember you’ve got to get clear on your vision. You will never get clear on your vision if you don’t understand what you’re doing in this business. And this is where education comes in. This is where getting a clear path look if you don’t have this book right here, My First Deal Playbook, you should get it. The book is free the shipping you got to pay, I think it’s five or six bucks. You can go to Amazon and get it right now. You can go to Amazon.com and get it so you pay the shipping and the book is free.
So get somewhere. The book is going to give you the foundation. Let me be very clear with you. The book is not going to turn you into a millionaire. Let me be very clear with you on that, okay. The book is to get you in the mindset of understanding what are the processes that you need to get, write it down, specialized knowledge on. What do you need to get specialized knowledge on? That’s the key of building the plan, right. We, we got to create the idea. We’ve got to create the plan and then we got to execute, right.
So what do we need? We need education to get specialized knowledge. Well, that’s our plan, so I’m going to create a plan to go after that specialized knowledge and then I’m going to execute that knowledge, right. One of the things that people miss so often is the execution. They get the idea, they get passionate, they get creative and they want to do it. Then they go, okay, well let me build a plan, and they lay a plan out, but then they don’t ever execute the plan. It goes back to something that I say all the time. Knowledge is not power. The implementation of that knowledge is what power is, okay. The implementation of it, look, I know some of the smartest people in the world, like I’ve hired people with master’s degrees to work for me, right. I don’t have a master’s degree. I just know how to implement information very quickly. I know how to execute on the plan. I know how to implement that knowledge in which I gained. I’m not saying a master’s degree, is bad. But if you’ve got, if you go out there with two or three master’s degree and you’re still making less than a hundred grand a year, something definitely went terribly wrong in your implementation side of things, okay. Hey, listen, you guys keep on being awesome and the ultimate goal is to always make some more money in this business, right. Build your systems. Build your plan, execute your plan, get the specialized knowledge that you have to have to grow your business. Hey guys, this is Zack Childress in another show. I’ll see you on the flip side. I’m out. Bye now.
You’ve been listening to the Real Estate Investing Talk Show. I’m Zack Childress and I’m on a mission to create 10,000 real estate bosses over the next year. Will you be one of them? Head over to my website, ReiSuccessAcademy.com/webclass, and register for my free web class, where you’ll discover how to escape from the nine to five grind and become your own boss in real estate. See you there.