Why Newbies Have Trouble Getting Started Wholesaling (& How to Solve That)

Why Newbies Have Trouble Getting Started Wholesaling (& How to Solve That)

3 min read
Marcus Maloney

Marcus Maloney is a value investor and portfolio holder of residential and commercial units. Marcus has been named the “Equity King” for his impressive ability to find real estate opportunities with massive amounts of equity.

Marcus, a high school dropout, went from G.E.D. to M.B.A. Although his education has a major impact on his investment philosophy, the real impact came from his upbringing.

Marcus thrives on completing successful transactions. As a young kid, his parents and grandparents faced many challenges; as a result, it made him think of ways he could help. His mother and grandmother were avid investors—not in the market but in people. Marcus was a recipient of those investments. And his early years were hard work growing up on a farm.

Marcus was a strategist at an early age. To relieve the burden of his family buying him clothes when it was time to return to school, he decided to make a small investment that paid big dividends. Marcus decided to purchase a small piglet at the beginning of summer, feed it until it became fat, and then sell it to a local farmers’ auction before the school year started. This was one of his first transactions and the beginning of his adventure of finding equity in every opportunity.

Marcus’ hard work continues today: He has completed over $3.3 million in wholesale transactions. Currently, Marcus is a licensed agent who wholesales virtually in multiple states while building his investment portfolio. Although wholesaling provides great money, he saw the opportunity to buy some of the deals he found and convert them into cash flowing rentals.

Marcus currently holds seven rentals, two of which are commercial units. He’s also done the unimaginable and purchased a school, which was converted to a daycare center. Again, he turns what is a marginal profit into a significant equity position. He leverages the equity by using the BRRRR (Buy, Rehab, Rent, Refinance, Repeat) strategy to increase his portfolio without any money out of pocket.

Marcus has been featured on numerous podcasts, such as the Louisville Gal Podcast, the Best Real Estate Investing Advice Ever podcast, FlippingJunkie, and many others. He’s currently a featured blogger for BiggerPockets, the largest community of real estate investors in the world.

Along with completing transactions and working to build his portfolio, he provides mentorship to aspiring investors. This is done through one-on-one interactions and through his successful YouTube channel and blog.

Marcus does utilize his M.B.A. for more than real estate. As a consultant for a successful non-profit institution south of Chicago, he uses his expertise in the development of human capital. His philanthropic efforts help existing stakeholders develop in their capacity to serve those in need of assistance.

Marcus completed his M.B.A. in 2011 from Olivet Nazarene University.


Read More

There’s been a lot of chatter surrounding the idea that newbies don’t know where and how to find the right people to assist them with their journey. I find this puzzling and want to introduce you to the importance of Meetup and Mastermind groups.

When I started wholesaling, I faced the same challenge, and I’ve had numerous individuals ask me: Where do I find people to connect with so I can get started wholesaling/investing?

The most popular response is go to your local real estate club. Although this is a great resource for information and meeting investors, I’ve found in my local market (it may be different in other markets) that the real estate club is filled with landlords and that not many experienced wholesalers frequent the club unless they are marketing a property — and then they are focused and don’t have time to chitchat. Again, this may just be in my market, but personally I have found the best place to go to meet investors that are doing what you strive to do is is in Meetup or Mastermind groups.

What is a Meetup?

For those who may not be informed, a Meetup is a group of individuals who have similar goals and ambitions, similar to a real estate club and Mastermind, but with some differences. A Meetup is normally designed to have a facilitator, a presenter, and the group. The presenter may have a topic of choice to discuss. Oftentimes a Meetup is a platform for networking and open dialogue. Please read this article on networking first so you will be prepared before going.

I frequent Meetups often because they’re a great source of information and a great environment in which to network. Unlike with real estate clubs, there is a diverse group of investors that joins. There are wholesalers, agents, landlords, note investors, financiers, escrow agents, and novices. Also, you can get a review of the market from others’ points of view.

Related: The Ultimate Beginner’s Guide to Real Estate Wholesaling

You can find a local Meetup by engaging on Biggerpockets or by visiting Meetup.com.

What is a Mastermind?

A Mastermind is a bit more intensive than a Meetup; a similar concept, but a lot more personal and engaging. The Mastermind is formulated to ensure you set goals and milestones and accomplish those goals. Also, your Mastermind group will hold you accountable for tasks and responsibilities. In this small setting, there are 8-14 participants, and it’s an open forum to discuss how to help each other in business.

Already prevalent in the business arena, Masterminds are becoming more popular in real estate. In some ways, they follow the same approach the gurus use during coaching sessions; however, in a Mastermind you don’t have to lose your shirt and pants in order to learn, if you get my drift. If you are a real estate agent, brokers offer this to their agents, but again, it is now becoming an accepted practice in the real estate world so it may be becoming more easy to find your group. If you can’t find a real estate Mastermind, you can still probably find a business Mastermind. Those groups will be sufficient as well because of the personal attention you will receive and the direction the group will be able to assist you in.

The Takeaway

As a newbie you must remember that investors are always looking for a maximum return on investment, and that applies to anything, not just real estate.

Try something; it’s better to try and fail than constantly try and figure it out without taking action. At some point you have to pull the trigger, or you will remain a student of the theories and concepts of investing. There’s no better teacher than real life experience. For example, you cannot simulate how a seller will respond to a question; you only learn these things by talking with sellers.

Far too many times newbies ask questions (which is good), but don’t take actionable steps once they receive the answers. Seasoned investors want to help those who will take action. Talking and doing produce two totally different results.

I drive by a bandit sign nearly every day that reads:”Investor seeks full and part time real estate investor pt/$5k and ft/$10k a month.” Honestly, I see this daily.

Related: Is Wholesaling the Best Way to Get Started in Real Estate? An Investor’s Analysis

Investors are looking for acquisition managers; basically, someone who will beat the streets and answer live calls.Read the article: “Warning Newbies: Stop Wholesaling Now!” will give you an insight on how to interact and provide value to a seasoned investor.

Far too many people are looking for fast income (which is NOT going to happen) and not willing to make this a career. If you are serious about becoming a experienced and professional wholesaler, get your license so you can diversify opportunities. There shouldn’t be any question about getting your license or not. If this is going to be a career path for you, then invest your time and your money in yourself before expecting someone else to invest in you.
If you have any other ideas for those getting started or you are getting started and don’t know where to look, let’s see if we can help. Just ask!
Leave your questions and comments below.
There’s been a lot of chatter surrounding the idea that newbies don’t know where and how to find the right people to assist them with their journey. I find this puzzling and […]