WHOLESALE DEAL FINDER PROTOCOL REPORT Market: Houston Texas — Budget $500/month — Beginner — Goal 1 to 2 deals/month Day 1 of 30 — EXECUTION MODE ACTIVATED POINT 1 — MARKET INTELLIGENCE REPORT Houston Market Overview: Median Home Price: $285,000 Average Days on Market: 38 days Foreclosure Rate: 1 in every 847 homes — above national average Absentee Owner Percentage: 28 percent Cash Buyer Activity: High — 31 percent of all transactions are cash Top 3 Zip Codes by Deal Opportunity: 77051 — Deal Opportunity Score 9/10 — South Houston — High concentration of absentee owners, aging housing stock, median price $145,000, strong cash buyer demand, average wholesale fee $12,000 to $18,000 77028 — Deal Opportunity Score 8/10 — Kashmere Gardens — High tax delinquency rate, significant distressed inventory, median price $135,000, average wholesale fee $10,000 to $15,000 77091 — Deal Opportunity Score 8/10 — Independence Heights — High foreclosure activity, strong investor interest, median price $160,000, average wholesale fee $14,000 to $20,000 POINT 2 — MOTIVATED SELLER IDENTIFICATION SYSTEM Pre-Foreclosures — Source: Harris County District Clerk foreclosure filings at hcdistrictclerk.com. Lead Volume: 150 to 200 per month. Average Discount: 25 to 35 percent below market. Best Outreach: Direct mail plus cold call. Probate — Source: Harris County Probate Court records at probate.harriscountytx.gov. Lead Volume: 80 to 120 per month. Average Discount: 20 to 30 percent below market. Best Outreach: Direct mail with handwritten envelope. Tax Delinquent — Source: Harris County Tax Assessor at hcad.org. Lead Volume: 200 to 300 per month. Average Discount: 30 to 40 percent below market. Best Outreach: Direct mail plus skip trace and call. Absentee Owners — Source: PropStream or BatchLeads for absentee owner lists. Lead Volume: 500 plus per month. Average Discount: 15 to 25 percent below market. Best Outreach: Text blast plus cold call. Divorce — Source: Harris County District Clerk divorce filings. Lead Volume: 60 to 80 per month. Average Discount: 20 to 30 percent below market. Best Outreach: Direct mail only — approach with sensitivity. POINT 3 — OFFER FORMULA CALCULATOR MAO Formula: ARV x 0.70 minus Repair Costs minus Wholesale Fee equals MAO Scenario 1 — Light Rehab: ARV: $180,000 Repairs: $15,000 Wholesale Fee: $10,000 MAO: $180,000 x 0.70 minus $15,000 minus $10,000 equals $101,000 Offer at: $90,000 to $95,000 — negotiate up to $101,000 max Scenario 2 — Medium Rehab: ARV: $200,000 Repairs: $35,000 Wholesale Fee: $12,000 MAO: $200,000 x 0.70 minus $35,000 minus $12,000 equals $93,000 Offer at: $80,000 to $88,000 — negotiate up to $93,000 max Scenario 3 — Heavy Rehab: ARV: $220,000 Repairs: $65,000 Wholesale Fee: $15,000 MAO: $220,000 x 0.70 minus $65,000 minus $15,000 equals $74,000 Offer at: $60,000 to $70,000 — negotiate up to $74,000 max Negotiation Rule: Always start 15 to 20 percent below your MAO. Never reveal your MAO. If seller counters above MAO walk away. POINT 4 — OUTREACH ARSENAL Cold Call Script — Pre-Foreclosure: Hi may I speak with [Name]? Hi [Name] my name is [Your Name] and I am a local real estate investor here in Houston. I noticed your property at [Address] and I wanted to reach out because I buy houses directly from homeowners and I can close quickly with cash. Are you open to a conversation about possibly selling? I am not an agent and there are no commissions involved. Objection 1 — I am not interested: I completely understand. Can I ask — are you planning to keep the property long term or is there any chance you might consider selling in the next 6 to 12 months? Objection 2 — I already have an agent: No problem at all. I work with homeowners directly and I can still make you an offer. Would you be open to seeing what I could offer just so you have a number to compare? Objection 3 — What is your offer: I need to see the property first to give you an accurate number. When would be a good time to take a quick look — it only takes about 15 minutes? Objection 4 — How did you get my number: I research public records in the area looking for homeowners who might be open to selling. I apologize if this caught you off guard. Objection 5 — My house is not for sale: I understand — most of the homeowners I work with were not actively looking to sell when I first called. I just want you to know that if your situation ever changes I am always ready to make a fair cash offer quickly. Text Script — Absentee Owner: Hi [Name] this is [Your Name] a local real estate investor in Houston. I noticed you own the property at [Address] and I wanted to reach out to see if you would consider a cash offer. No agents no fees no repairs needed. Would you be open to a quick conversation? Direct Mail Script — Probate: Dear [Name], I understand this may be a difficult time and I want to reach out with the utmost respect. I am a local real estate investor and I specialize in helping families quickly and easily sell inherited properties with no repairs, no agent fees and a fast closing on your timeline. If you would like a no-obligation cash offer please call or text me at [Your Number]. I am here to help make this process as simple as possible for your family. Follow-Up Sequence: Day 1: First contact — call or mail Day 4: Follow-up text Day 10: Second call Day 21: Second mail piece Day 45: Third contact Day 90: Final follow-up — add to long term nurture list Rule: 80 percent of wholesale deals come from follow-up contacts 3 through 6. Never stop following up. POINT 5 — CASH BUYER BUILD SYSTEM Where to Find Cash Buyers: 1. Facebook Groups — search Houston real estate investors and post: I have wholesale deals coming in Houston 77051 and 77028. Looking for serious cash buyers who close fast. Comment or DM me to get on my list. 2. BiggerPockets — create profile and post in Houston forum that you have deals coming. 3. Craigslist — post in real estate section: Cash buyers wanted — wholesale deals in Houston. No agents. 4. Local REIA meetings — Harris County REIA meets monthly. Attend and collect business cards from every investor. 5. Title Company — ask your title company for referrals to active cash buyers they have closed with recently. Cash Buyer Script: Hi [Name] I am a wholesale investor in Houston and I am building my cash buyer list. I have deals coming in 77051 and 77028 — mostly single family distressed properties at 65 to 75 cents on the dollar. Are you actively buying in those areas? If so I would love to add you to my list and send you deals as they come in. What is your buy box? 30-Day Cash Buyer Goal: 50 active buyers on your list. Target 2 new buyers per day minimum. POINT 6 — 30-DAY DEAL PIPELINE PLAN Week 1 — Setup and Launch: Day 1: Pull 100 tax delinquent leads from hcad.org. Set up free BatchLeads trial. Join 3 Houston investor Facebook groups. Day 2: Send 50 text messages to absentee owners. Make 20 cold calls to pre-foreclosure list. Day 3: Attend local REIA meeting or virtual equivalent. Add 10 cash buyers to list. Day 4: Send 25 direct mail pieces to probate leads. Follow up on Day 1 texts. Day 5 to 7: 20 calls per day. 20 texts per day. Follow up on all contacts. Week 1 KPI Targets: 140 contacts made. 5 appointments set. 50 leads in pipeline. Week 2 — Appointments and Offers: Run all 5 appointments. Make offers on qualifying properties. Send 50 more direct mail pieces. Add 15 more cash buyers. Follow up on all week 1 leads. Week 2 KPI Targets: 5 appointments completed. 3 offers submitted. 65 cash buyers on list. Week 3 — Negotiation and Pipeline Building: Follow up on all offers. Make counter offers where needed. Pull 100 new leads. Send 50 more texts and make 20 more calls daily. Week 3 KPI Targets: 1 property under contract. 10 offers submitted total. 80 cash buyers. Week 4 — Close and Scale: Assign first contract to cash buyer. Collect assignment fee at closing. Review KPIs and identify best lead source. Double down on what is working. Week 4 KPI Targets: 1 deal assigned. Assignment fee collected. 100 cash buyers on list. $10,000 to $15,000 earned. POINT 7 — DEAL ANALYSIS AND DUE DILIGENCE SYSTEM 30-Minute Deal Evaluation Checklist: Minutes 0 to 10 — Property Assessment: Walk the property. Note foundation issues, roof condition, HVAC age, electrical panel type, plumbing material. Take photos of every room and exterior. Minutes 10 to 20 — ARV Calculation: Pull 3 to 5 comparable sales within 0.5 miles sold in last 90 days. Use Zillow, Redfin and MLS if possible. Average the comps. That is your ARV. Minutes 20 to 30 — Repair Estimate: Use $10 per square foot for light rehab. $25 per square foot for medium rehab. $40 per square foot for heavy rehab. Add 10 percent contingency. Title Search Steps: 1. Order title search through your title company immediately after getting property under contract. 2. Check for liens, judgments, back taxes and HOA violations. 3. Verify seller is on title and has legal authority to sell. 4. Confirm no IRS liens — these survive closing and kill deals. Exit Strategy Options: Assignment — fastest and simplest. Assign contract to cash buyer for fee. Double Close — use when assignment fee is very large and seller might object. JV with experienced wholesaler — split fee 50/50 on your first few deals to learn the process. POINT 8 — CLOSING AND ASSIGNMENT STRATEGY Step 1: Find a wholesaler-friendly title company in Houston. Ask local REIA members for referrals. Confirm they handle assignment of contract before you commit. Step 2: Once you have a cash buyer execute an Assignment of Contract form. Fill in the original purchase price, your assignment fee and the buyer’s name. Step 3: Send the assignment agreement to your title company along with the original purchase contract. Step 4: Title company handles closing. Both seller and buyer sign separately in most cases. Step 5: You receive your assignment fee at closing via wire or check. Average timeline from contract to close: 7 to 21 days. Assignment Fee Negotiation: Never reveal your purchase price to your cash buyer. Simply tell them the property is available at X price. If they counter negotiate based on your MAO buffer. Target minimum $8,000 to $10,000 per deal. Double Close Strategy: Use when assignment fee exceeds $20,000 and you do not want seller to know your profit margin. You close twice — once buying from seller and once selling to buyer. Requires transactional funding — typically 1 to 2 percent of purchase price for 24 to 48 hours. Documents Needed: Purchase and Sale Agreement. Assignment of Contract. Proof of funds letter. Title commitment from title company. WHOLESALE DEAL SCORE: 8.7/10 — Houston is one of the top wholesale markets in America with high distressed inventory and active cash buyers. Your $500 budget is enough to get your first deal if deployed correctly into direct mail and skip tracing. Follow the 30-day plan exactly. Your first wholesale check of $10,000 to $15,000 is achievable within 45 to 60 days of consistent execution.