Good morning! I am new to REI
I would like to introduce myself to BP as I am new to this and REI. I want to start out as a wholesaler and SFH. I am seeking to invest in the NJ/PA area. I am also seeking out advice and mentoring from any experienced investors.
There are lots of youtube videos, forums etc on wholesaling. I would suggest you get stuck into those and then come back and ask specific questions when you need clarification. No one wants to mentor someone when it means "Tell me what do do". They will help you when you are showing initiative, talking action and ask questions for clarification.
"I want to start out as a wholesaler"
You're in the wrong forum, those aren't investors. Be kinda like saying you bet on sports and that makes you a pro athlete.
@Steve Morris I agree that wholesaling isn't investing, it is marketing & sales. Your reference is wrong and a little insulting though "Be kinda like saying you bet on sports and that makes you a pro athlete." If the pro athlete is the investor then the wholesaler is the agent who sets up the athletes with great deals so he gets paid.
Well, if the wholesaler put $0.01 of his own money at risk or actually took title then I could kinda sorta agree.
But probably not.
@Steve Morris no disrespect to you as I am sure you are a smart broker and investor. I think you could expand you mind more about wholesaling though. If people ask me what I do I say I am a wholesaler. I own over $4 Million worth of properties (all myself, no partnerships), I spend $6K every single month on marketing to find new deals. I assign most of them to other investors who love what I do. They get deals significantly better than what they can find themselves. They are leveraging my marketing and sales skills so they can just buy a good deal and focus on their exit strategies. This gives me great dealflow and I can cherry pick the deals that best suit my criteria. Again I am not trying to have a go at you as I am sure you are very accomplished in your own right. I just want to say that you are making a statement to a new person getting started like its fact and the truth is you probably haven't dealt with many good wholesalers before. This is hurting someones potential. Don't put new people down or discourage them on things you don't know anything about.
@Jada Atchison keep learning and reach out to me when you have questions. Wholesaling can be a great path to build wealth in the REI world. If you learn to be an investor and a wholesaler the opportunities you will present yourself with will be endless.
@Stephen Keighery thank you for the advice, I appreciate it.
@Stephen Keighery I definitely keep in touch when I have questions, as well.
"They get deals significantly better than what they can find themselves."
Not quite if your wholesaling. You look for the weak and misinformed people that are in desperate straits. You then think you're doing them a factor offering them well below FMV so you can stick your margin in the deal.
So instead of broadly advertising this in someplace where you could get a lot of people looking like MLS, you'll resort to cheesy hand-written letters or visually polluting road signs to cultivate a list. You'd like a quick turn with min risk, so this is NOT investing.
This is why I'm making an effort to get on these lists, call the sellers and ask if he'd like to make 30% more if he listed the property.
@Steve Morris please learn more about wholesaling before trying to tell people how it works. I don't know why you are trying to put something down you clearly don't understand how it works. We get better deals because we solve problems. It is true 98% of people should list with a realtor and I tell everyone that. But there are some people that want to trade speed and convenience for trying to squeeze out top dollar, people who have houses so bad that realtors don't want to touch them. I closed one last week at full retail value. She still owed what the house was worth so If she sold it through an agent she would have had to come out of pocket to pay realtor fees and closing costs and have to pay the note while it waited to sell. I bought it at full retail subject to the mortgage and am now making the payments. A good wholesaler solves the sellers problems and makes money in the process. My sellers are always smiling on closing day and thank me.
I close on average one deal a week and have never put up a bandit sign or done a hand written letter. I think instead of spending your energy and time putting something down spend time going a little deeper and learning more about a strategy. Just like realtors there are good and bad wholesalers so its easy to see one example and think that represents the whole industry. If you truly want to know all about real estate go a little deeper and increase your understanding.
I already agreed that wholesaling isn't investing, its just a part of the investing process. I define myself as a wholesaler but I am also an investor and this works really well for me. As I have already said I am not trying to put you or anyone down, I am just asking you to extend the same same courtesy.
If you want to expand your mind on wholesaling I suggest you listen to Steve Trang's Real Estate Disruptors podcast. He is a broker and runs a traditional realty business as well as a wholesaling business. He gives sellers the option that is best for them. In his podcasts he interviews some of the countries top wholesalers. You will find this may help you understand more about this industry. Also check out my blog where I post about deals I do. You will see there is always a story behind each deal in terms of a problem that we solved https://homebuyerlouisiana.com/we-buy-houses-new-orleans/
@Stephen Keighery thank you for this information!
@Jada Atchison hi jada, welcome. I’m new and in nj, looking in nj and pa
@Robert Howell @Jada Atchison Hello Robert and Jada, like you I am also in NJ and have been looking in the Tri-state Area. I am also a recent investor and I would love to talk with fellow NJ investors.
@Christopher Scaffa @Robert Howell what caught your interest on REI?
Originally posted by @Jada Atchison:@Christopher Scaffa @Robert Howell what caught your interest on REI?
Jada, I have been dumping money into my ROTH IRA, employer 401k and my own investment fund and am looking to diversify my investments and I recently finished Rich Dad Poor Dad so I found out about bigger pockets and started just pouring over their podcasts (Real Estate Rookie especially), bought the BRRRR book and a few other BP books so I am gunning to get started. I know if I slow down I'll get myself suck in analysis paralysis, so I am reaching out to try to kick start myself.
@Jada Atchison
Welcome on board and good luck in your REI career.
@Brian Geiger thank you, is there any other books that are good reads about REI?
@Christopher Scaffa I’ve subscribed to that podcast and it’s very informative, everybody has recommended to read Rich Dad Poor Dad, and some books on BP. Other good podcasts I listen to are Real Estate Disruptors and Best Real Estate Investing Advice Ever.
@Jada Atchison
Please see my list of books below:
1. What Every Real Estate Needs to Know about Cashflow and 36 other key measures by Frank Gallineli
2. How to Create Lifetime Cashflow through Multifamily Properties by Rod Khleif.
3. How to Create wealth by Investing in Real Estate by Grant Cardone.
4. One Rental at a time by Michael Zuber.
5. The ABCs of Real Estate Investing by Ken McElroy.
@Brian Geiger thank you for the book list!