Real Estate Investor · Aurora, CO · Member since 2009 · 155 posts · 60 votes
13y
There are many reasons investors need Wholesalers. Some don't like talking to homeowners. Some don't have the time. Some don't want the hassle, they just like to buy smokin hot deals when they are brought to them by a wholesaler such as myself. Real buyers don't care if you make a little money in between as long as the numbers still work for them. Some don't like looking on the MLS for deals, but will jump on one I just picked up after a price drop that I have been watching for a while.
I Wholesale houses for a living, and still rehab a few houses. I started out rehabbing and know how that side of the coin thinks as well.
Wholesaling is a viable income stream, but like anything takes time to dial in and get good at.
My advice is to not worry about those who knock it. Most that knock haven't figured it out. Learn all you can and network only with those who will postively support you in whatever real estate niche you choose to pursue. Message me if you have any questions, Bitsy.
Good luck.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
13y
Welcome to BP!
Not very well in many areas, depends on the inventory and the market. Lots of ways to do it, best is first find buyers and see what they want, then lock up a deal and assign the deal to the investor buyer. That also means buying at a low enough price to earn a profit from selling to an investor type who also wants to steal it too. But many do and many more try it... :)
Pittsburgh, PA · Member since 2013 · 29 posts · 0 votes
13y
Thanks for the reply:) But I'm not sure I understand why the buyers don't just find these deals themselves and cut out the wholesaler. Is it because they just dont have the time?
Real Estate Investor · Aurora, CO · Member since 2009 · 155 posts · 60 votes
13y
There are many reasons investors need Wholesalers. Some don't like talking to homeowners. Some don't have the time. Some don't want the hassle, they just like to buy smokin hot deals when they are brought to them by a wholesaler such as myself. Real buyers don't care if you make a little money in between as long as the numbers still work for them. Some don't like looking on the MLS for deals, but will jump on one I just picked up after a price drop that I have been watching for a while.
I Wholesale houses for a living, and still rehab a few houses. I started out rehabbing and know how that side of the coin thinks as well.
Wholesaling is a viable income stream, but like anything takes time to dial in and get good at.
My advice is to not worry about those who knock it. Most that knock haven't figured it out. Learn all you can and network only with those who will postively support you in whatever real estate niche you choose to pursue. Message me if you have any questions, Bitsy.
Good luck.
Pittsburgh, PA · Member since 2013 · 29 posts · 0 votes
13y
Thanks for the reply Kyle, much appreciated:) I'm trying to learn as much as possible on the subject, I guess thats the best way to start lol!
I read so many different things about it, people think its a great idea and some think its to much work etc. Honestly people seem to be all over the map I'm sure what to think about it lol.
Thank you again,
you've given me a little comfort
on crazy subject:-)
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
13y
Hey, really, I'm not knocking it, I did wholesale deals when most of those here doing them were in grade school! :)
It really depends on the market and the inventory as I mentioned, and being good at rehabs puts big feather in the cap if you have been there and done that. As Kyle mentions, some investors will buy but don't spend much time at looking. They may not know they are interested in a deal until they are confronted with it.
I don't advocate learning one or just two systems, markets and conditions change, if you can't adapt to the right strategy to the property you will have limited yourself. Begin RE with the basics, understand how it works and then specialize in what you like. If you don't and the market conditions change, you may have to start learning all over again to stay in the business. Good luck
Pittsburgh, PA · Member since 2013 · 29 posts · 0 votes
13y
Thanks Bill:) Like I said I am a total Newbie but I wonder if there is a big enough need in my area..I'm from a pretty small town and there is a lot of rehabbing going on but I haven't heard much about wholesaling at all.
I am also going to try my hand at the rehabbing because I'm a lot more familiar with it. Are you doing any rehabbing, and if so what do you personally prefer wholesaling or fix and sell?
Specialist · Memphis, TN · Member since 2012 · 1k+ posts · 1k+ votes
13y
If you define wholesaling Bitsy it is simply buying something for less than it is worth (sort of), and then selling it for what it is worth or at least more than you paid.
So in that simple form yes it is a great strategy and a great way to make money.
HOWEVER it is not an INVESTMENT strategy or technique, it is a job.
So when you say should you start out wholesaling it depends on where you want to end up.
IF you want to be an investor living off your investments then no don;t start wholesaling. Instead find and learn no money down strategies that allow you to hold and pay off real estate using other peoples money.
Of course if you already have money then just start buying investments.
But if you are after a job and way to make money using real estate then finding some deals you can sell for more than you found them for is the only strategy to start with. Because to be a flipper/wholesaler/ dealer in real estate you have to learn how to buy better than the average person so that you can supply the average person.
Hope this helps! Never mix up investing and trading.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
13y
Well said Dean! Where Dean said (sort of) concerning price, that is key and really you need to find distressed sellers. It will be covered in the link given by James. This may be a hard strategy if you are in a small town and if there is alot of activity sounds like others are already active indicating a competitive environment. :)
Real Estate Investor · Aurora, CO · Member since 2009 · 155 posts · 60 votes
13y
One thing ill say that the others won't mention is that while wholesaling is a very active way to participate in real estate, it is a great foundation for anyone to have. It teaches you negotiation, a critical skill to acquiring any property at a discount that makes sense for your investment portfolio. It is a great foundation, for when you control a property, multiple exit strategies are available to you. You can sell to another investor, keep for a rehab project for yourself, sell it on a lease option, hold the property and sell it on owner financing to a retail buyer, etc.
Control is the key to any great real estate business, and if you become great at wholesaling you open the doors to ALL other avenues. Some of the most successful investors ice had the pleasure to speak to are all masters of negotiation. They understand the power of control without ownership, and wholesaling when approached properly teaches exactly that.
Involved In Real Estate · Pennsylvania Furnace, PA · Member since 2013 · 54 posts · 7 votes
13y
Hi Bitsy Voloskie, I am also a Pa investor not too far from you.There are a few Pittsburgh investors on here. I searched them out by making a post looking for other Pa investors. If you are down around Pitts, (I'm in state College) you should look for fellow investors that like to mentor. Networking is absolute key to this business no matter what niche you choose. I am also starting out in wholesaling and using those funds to transfer into buy and hold investments. We have yet to do our first transaction, as we have spent the last 3 months setting up the legalities of the business for the long haul, however, we have several different strategies we are going to employ. I will be more than happy to share them with you and let you know which work as they do. Connect with me and keep in touch. Also, definitely look up all the topics and blogs on this site about wholesaling and flipping/ rehabbing. the more you know about the niche your selling too the better your chances of selling to them, imo.
Welcome to BP. You found the best online resource for REI
Residential Real Estate Agent · Mc Keesport, PA · Member since 2012 · 449 posts · 154 votes
13y
Kyle Weimer Kyle, I read that you're a FT wholesaler. You also mentioned that it takes time to get the wholesaling business up and running. I was just curious as to how long it took you to get your wholesaling business to the full-time level. I've heard all kinds of stories from "I got my first deal in 2 weeks and I netted 25K" to "I was a wholesaler for a year and half until I got my first deal. Here's a copy of my check for 1,500." Anyway, curious to know your timeline...
Pittsburgh, PA · Member since 2013 · 29 posts · 0 votes
13y
@Thomas Price Thanx for the info:-)
Im around the airport area (Oakdale/Mcdonald) Im wondering if any of
the Pittsburgh folks on here are going to any of the local rei club meetings and how you like them. I understand completely how important a mentor is and I'm curious as to how you went about getting one, if you did?
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
13y
There is an attorney named Brad Dornish in the Pittsburgh area who works with investors. He has some home study training materials that are reasonably priced as well. Worth a look IMO.
Involved In Real Estate · Pennsylvania Furnace, PA · Member since 2013 · 54 posts · 7 votes
13y
Oh how I wish I had a mentor Bitsy Voloskie. Up here where I am it's just me and a bunch of flippers and buy and holds. I live in a University area so the main area is extremely high priced and mainly caters to student housing. 10 miles out of the University area is a completely demographic. You know how people say Texas is like a whole different country? (I know because I was raised there) Well here is a whole different situation also. While most of the country fell into a recession, this area was still building, and alot! I have yet been able to find another wholesaler up here and therefore my mentor is BP. I am pretty much doing everything from scratch and that is why it is taking me so long to get started. I don't have enough capital to do any flips or buy and holds. I have developed about 5 different strategies for find sellers and I have already put together a buyers list of about 25 (although 22 of them don't know yet :o) ). I did get involved with a local REI club and I would appeal to you to do the same. I was lucky enough to get invited to a REI Facebook group and I am getting some good info from that. Being around Pittsburgh I would think it should be a little easier for you if you can just start networking and find someone willing to show you the ropes.
Pittsburgh, PA · Member since 2013 · 29 posts · 0 votes
13y
@Thomas Price, Im curious to know if having a business set up is the first and most important thing? I see a lot of people have LLC's set up, what about people who are just rehabbing on the side, or just doing a few a year? I wonder if thats what I should do first even though I'm not really experienced yet. Any pointers on the subject? And does it help with funding projects at all?
Lender · St. Louis, MO · Member since 2009 · 348 posts · 164 votes
13y
Bitsy Voloskie, many times you will not be able to get funding unless you are buying in a business entity. Many investors use LLCs. The reason for this is that there are usury laws that limit the amount of interest that can be charged to a consumer. The usury laws many times don't apply to businesses. The laws in some states (such as Missouri) don't restrict the amount of interest that can be charged to an individual if the loan is for a business or commercial venture. Also, federal tax liens can be attached to properties owned by individuals. For these reasons many funding companies will not lend to an individual, only to a business entity.
Wholesaler · Austin, TX · Member since 2012 · 16 posts · 6 votes
13y
Bitsy,
There are two REI groups in the Pittsburgh area. One is called ACRE and the other is the Western PA Real Estate Investor Association. I have been going to the ACRE meetings for about a year and they are usually well attended. I have not gone to the other, but some people go to both. ACRE meets at the Doubletree hotel in Greentree on the first Tuesday of the month. I believe that the Wester PA REIA also meets at the same place, but I do not know which day. I definitely recommend that you attend at least one of them. Usually some good information and good networking.