BiggerPockets

Hello everyone, I'm a "newbie" when it comes to real estate investing and I just have a few specific questions. I've read TONS of articles, books, and bought programs about wholesaling and would like to know should I get started in commercial or residential? According to most articles and books the process of finding sellers and buyers are pretty much the same amount of work but of course there is more to it on the commercial side. Is it wise to take time to educate myself on commercial wholesaling or get some "practice" in residential? Thank you very much in advance for your feedback, it is greatly appreciated.

Thanks for your reply Jimmy. I've found plenty of buyers and know exactly what they are looking for. In your opinion, what would be the first step to take to start wholesaling residential properties? I hear and read a lot of different things but nothing really says...."your first step should be...."

Jeffery,

The very first step is take action! The order I follow is,

1) Farm my area ( Research my chosen location or locations to invest) You want to target other Wholesalers in your area and see if they would like to team up on deals.

2)Research what buyers are paying for properties, find out what wholesalers are selling them for. know what the common spread is in your market. 3K-15K? I personally believe if know these answers and "Buy Right" you will find buyers. The trick is to buy right. Do not put a property under contract if you are not sure about the numbers and value of your deal. In short find the best Wholesalers in your area and follow suit. Find and know your competition in doing so you may find a great business partner to team on deals with.

3) Market for great deals and or buyer's whichever you choose to do first.

4) Lock that bad boy up under contract.

5) Sell to you buyers list or leverage other Wholesaler's list which you will pay a fee too for helping move your property. If you need to find you buyer at the last minute / BANDIT SIGN IT! get that property MOVED!

5) Take a nonrefundable deposit from buyer. Hook up with a title company in your area that is investor friendly, and get that deal CLOSED!

6) Collect your CHECK "Rinse and Repeat" :)

Last tip exhaust all free marketing first,- Facebook, Twitter, Craigslist etc. There is alot of investors and free knowledge on this site in particular and the others I mentioned. Good Luck and Happy Investing!

@Robert thank you too for your response as it was very helpful. Question, how would I partner up with another wholesaler? Do I bring them a property under contract then assign it to them or do I just show them the property and have them put it under contract? I ask because I hear all the time how people steal deals and want to try to avoid this at all cost.

Jeff

Multi family and Commercial is where the action is right now, and will be for quite some time. Residential is dying on the vine unless you work the upscale home market! Just make sure that your research and due diligence is above reproach before you commit.

You have to evaluate commercial differently than residential. You have to know how to evaluate cap rates,DSR's,IRR's,etc since that is what most buyers look for.

Also remember that the value of a commercial property is different than a home. Commercial values are based on income where as a homes value is based on local market conditions.