BiggerPockets

Birddog/referrals and wholesale/quick turns would be the best way to get your foot in the door with no credit and little money.

You can always take on more later.

If you have more time than money , Wholesaling is the way to go. All your really doing is flipping paper. I really didnt believe it until I had done 2 deals and now I am more motivated than every. This is a great place to be ...I love it here. I have found out some much here at bigger pockets than any place eles.

Everywhere else you go someone wants to always sell you something but the people here are giving you vital information with nothing in return. Thank you so much for starting bigger pockets. It is a GOD send. Sam I suggest you ask as many questions as possible and you will get a reply.

1. Become a bird dog for a seasoned wholesaler. This will teach you how evaluate properties, learn the neighborhoods that are selling and you don't have to risk any of you own money. In case your not familiar with the term "Bird Dog" It's simply finding properties for a investors and let them handle the contract negotiations and putting up the deposit to secure the property. He will then pay you a set fee when the property closes. (While in most states this is legal please seek legal advise) DO NOT ask for a up front fee! This will show desperation and possibly ruin the relationship.

2. Partner Up With an Experienced Wholesaler. Like any business transaction he will want to know what your bringing to the table. If your just getting started this is probably not a good option because it will only frustrate you. You must have some experience or things just won't work out. You may even quit before you close a deal. My suggestion is start off as a bird dog and learn the ropes. Wholesale deals have been around since the beginning of Real Estate and they will still be there next week. Take your time and you will make plenty of money.

3. Find a good Realtor. All Realtors are not created equal. Most Realtors have a specialty. Some specialize in Luxury homes, some the buyers side, some the sellers side...ect. The one you want that specializes in Foreclosures and Bank owned properties. Why? They can help you when analyzing the property, give you comps and give you an idea what the bank mite take. Notice I said "mite"! If they are the listing agent for the bank they do have an obligation to the bank as a seller's representative.

Hey Sam...I saw you posted this in August...how did you make out? You know a lot of new folks quit because they see how hard all this stuff really is. Don't quit okay? LEt usknow how you are doing now.

None in my opinion are as safe as wholesaling. My suggestion is hit wholesaling hard and you will make a ton of money no need to look at other avenues they will just distract you and take up your time. You will make the most money being focused. You can make as much money as you want wholesaling. Many investors make as much as a million dollars a year wholesaling.

Brian Haskins

I agree with Jon, a million a year seems very excessive. Building up to a million is most likely over time...

Or, reinvesting profits could easily build wealth...but not likely to literally make a million from wholesaling alone.

There is no doubt however that it could offer some significant income on its own if you do it full time or add a very nice supplemental income as a second job.

You should get a job, save your money, and work on your credit. Read a lot on BP and in books. In a year or two you will have a plan and have to tools to get it done.

A million a year wholesaling is quite a feat and to do that consistantly would ultimately require wholesaling in the commercial side where profist could be $100k for one deal, rather than $10k. I would have to side with Jon's comments on this one.

As far as wholesaling, many are told and believe this is a great starting point for investors with no cash or credit. I beg to differ simply from the results. The results show most fail and never complete a deal because of several reasons.
1. They lack the ability to properly understand and calculate cash flows or repair budgets.
2. They lack teh ablity to find real deals with real spreads necessary to complete a sale to a buyer. (Mostly because they have too many middlemen in the deal)
3. They lack the ability to build a true buyers list of cash purchasers.
4. They believe the job does not require much effort and as such, do not put forth enough to get it done.
5. They believe everything they hear.

This is a partial list of reasons and is NOT intended to discourage, but prepare you!
In my humble opinion, if you want to wholesale and actually make money, then learn how to flip properties. In doing so, you will learn how to evaluate market conditions, market values, repair budgets, negotiating techniques, and much more. This will prepare you how to become a real wholesaler.

It is possible to make a million wholesaling even though these people don't believe it. We came close about 2 years ago. Then moved to flipping where the money is a little better. But back to wholesaling, if you want to make that kind of money you will have to work 80 hours a week and have a great team. We had rehabbers, leasing agents, banks, hard money lenders all in place for our customers to use for our product. We went out for drinks dinner almost every night with a new potential investor that may buy our product. We didn't go out and find established investors to purchase our great rentals we built them. This took a lot a lot of servicing, phone calls, emails, dinners, drinks. But It can be done investing in Real Estate is really an easy sell. Just don't hold yourself back to only selling to current investors. Talk about the advantages of buying real estate to everyone you know NETWORK. This is a common mistake wholesalers make. They only sell to current investors when you can take your neighbor and make him and investor.

K.C.

Bird Dogging is covered by the licensing laws of several states. I don't know about yours but a good rule to start with is not to use the title real estate consultant unless you are licensed. Stick with the generic investor nameplate.

Even though I used bird dogs I would never suggest you become one. Start off as a wholesaler from day one. I hate to type so I won't give the 20 reasons why.

The million a year wholesaling, never seen it done. I have done the million but it required adding some rehab and end buyer deals I cherry picked while wholesaling, and also I was doing business where the average home was a million dollars plus so walking away from escrow with a $200k check was not a stretch. Plus being a broker didn't hurt either.

Learn to talk to the sellers, at the least spend a buck or two on an option. dig into the archives on bird-doging, options, etc. but don't become one. become a principle in the deal on some basis.

Brian