How to Start Wholesaling: Getting Past The Education and Into the Field

How to Start Wholesaling: Getting Past The Education and Into the Field

4 min read
Brandon Turner

Brandon Turner is an active real estate investor, entrepreneur, writer, and podcaster. He is a nationally recognized leader in the real estate education space and has taught millions of people how to find, finance, and manage real estate investments.

Experience
Brandon began buying rental properties and flipping houses at the age of 21. He started with a single family home, where he rented out the bedrooms, but quickly moved on to a duplex, where he lived in half and rented out the other half.

From there, Brandon began buying both single family and multifamily rental properties, as well as fix and flipping single family homes in Washington state. Later, he expanded to larger apartments and mobile home parks across the country.

Today, Brandon is the managing member at Open Door Capital, where he raises money to purchase and turn around large mobile home parks and apartment complexes. He owns nearly 300 units across four states.

In addition to real estate investing experience, Brandon is also a best-selling author, having published four full-length non-fiction books, two e-books, and two personal development daily success journals. He has sold more than 400,000 books worldwide. His top-selling title, The Book on Rental Property Investing, is consistently ranked in the top 50 of all business books in the world on Amazon.com, having also garnered nearly 700 five-star reviews on the Amazon platform.

In addition to books, Brandon also publishes regular audio and video content that reaches millions each year. His videos on YouTube have been watched cumulatively more than 10,000,000 times, and the podcast he hosts weekly, the BiggerPockets Podcast, is the top-ranked real estate podcast in the world, with more than 75,000,000 downloads over 350 unique episodes. The show also has over 10,000 five-star reviews in iTunes and is consistently in the top 10 of all business podcasts on iTunes.

A life-long adventurer, Brandon (along with Heather and daughter Rosie and son Wilder) spends his time surfing, snorkeling, hiking, and swimming in the ocean near his home in Maui, Hawaii.

Press
Brandon’s writing has been featured on Forbes.com, Entrepreneur.com, FoxNews.com, Money Magazine, and numerous other publications across the web and in print media.

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Instagram @beardybrandon
Open Door Capital

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Today in the forums there was a question asked that I thought was so great I want to share it here on the blog for everyone to read. Do you struggle getting started? Have you read the books, conversed in the forums, commented on the blogs, and listened to the Podcasts – only to be stuck? Do you hear the gurus talk about how easy wholesaling is? Do you wonder why you can’t seem to take the first step? This was the issue one BiggerPockets member brought up today. In summary, he said:

“I want to get into wholesaling, at first. Why can’t I begin the process? I keep getting overwhelmed…somethings missing. dont i need an attorney for the forms? shouldnt i just come out and let the investor (buyer) know i am a wholesaler?? where do i get the forms?? sigh. I will keep reading. i will keep posting. but i dont know if ill ever “get it”. I have a feeling I am going to foul up a couple of these before I get it right. Anyone know this feeling??? i want to take cruises and be financially free. i want to get out of my cubicle (yep, im in it right now!) and work smarter! help!”

Does this sound familiar? The following is my answer to that question. If you have any thoughts – please add them to the comments below AND head over to the forum post and leave your comment there as well.

How to Get Started Wholesaling: The True Story

The following is my response, taken directly from the forums:

Hey… I feel for ya! I think the problem is trying to jump into a system that you didn’t grow organically. It’s like trying to instantly have a business with 50 employees and millions in sales when you never ran a business before, or getting a truck-load of materials delivered to build a house when you’ve never done construction before. Sure – there is a pile of materials, the blue print is there, there is plenty of advice, but it wasn’t gained organically so it doesn’t always make a difference.

There are a million guru guides and programs that will give you the exact, step-by-step, process for talking with sellers, what to write on your bandit signs, etc. Yes – this stuff will probably work, but these are just the building materials delivered to your job site. The gurus claim “all you need to do is this simple 10 step process” but in reality – no two deals are the same. If all you do is follow the steps outlined by a guru – you’ll be lost in no time. You have to grow your knowledge, skill, and business techniques organically

So, How Does One Grow Organically?

Well, I think you are starting out right. Being involved in the BiggerPockets Forums is a great way to get connected with guys who know what they are doing. I think it’s important to decide fully what you want to do – which it seems you have. Asking questions in the Forums – answering when you can – and just being a common face helps people to like you and get to know you.

Second – I think it’s vital for a wholesaler to FIRST get connected with some local buyers before worrying about bandit signs, scripts, or anything else. I don’t mean “build your buyers list” (that will come with a good deal) but just get to know some local guys who are buying property. This could be buy-and-hold guys, house flippers, or whatever. They are the ones who are going to buy your deals eventually. They need to become your best friends, your mentors, your partners.

Whatever it takes – you need to become friends with these guys. Offer to work for free to help them out. Provide value to their business. Tell them you want to bring them deals – and you want to learn the business by doing so. If someone earnestly came to me and said that, I would take all the time in the world to explain exactly how to do it, step by step. Funny thing is – no one has ever approached me out here to offer me deals. Maybe wholesaling isn’t alive in my area – or maybe there is no one willing to do the work.

These mentors (or even just one mentor) will tell you what they want and how they get it. They will take you under their wing and help you get started – because both of you will make money. It’s a win-win. Yes, this relationship might be hard to start – but real estate investing is hard work.

Be sure to listen to the first episode of the BiggerPockets Podcast also, cause Marty talks about the best way for a wholesaler to succeed. It’s really amazing.

The Truth About Wholesaling

A final note on wholesaling: I don’t know the numbers, but I would estimate that 90% of people who try to get into real estate investing start with wholesaling because it seems that it’s quick, easy, and cheap to get into. Of those 90% – I would guess only 10% of people actually ever do a single deal. Which means – for every 100 people who want to get into real estate through wholesaling, only 1 person ever actually makes money.

So what am I saying?

Wholesaling is a J.O.B. It’s a job that takes money to start (yellow letters, postcards, bandit signs, direct mail, postage, etc) and a lot of sales ability. The payoff MIGHT be worth it – but it might not. The Gurus make it seem like the end-all best thing ever – but in reality: it’s tough.

So – be sure that wholesaling is the JOB you want.

  • If your dream job is to wake up in the morning and be a math teacher: then go be a math teacher.
  • If your dream job is to wake up and rescue poor animals: go be a vet.
  • If your dream job is to approach hundreds of people in rough places in their life, convince them to sell their property to you for much less than its worth, and find other investors to buy it: Then be a wholesaler. There’s nothing wrong with it – but it is a JOB.

Whatever your JOB is – make your investing separate. Begin with your house. Do you own your own? Can you buy a duplex, triplex, or 4-plex to live in and rent out the other units, gaining experience in landlording? How about finding an extra job delivering Pizza, saving up the 20% needed for a down payment on a small investment property? That is true investing, and that’s going to give you wealth – not a script from a guru.

Thoughts? Leave your comments below AND also be sure to leave your suggestions on the actual forum thread!
Photo: Vincent_AF