This article is for those sitting on the fence doubting themselves while trying to learn everything there is to know about wholesaling.
I have one thing to tell you: You will never know everything there is to know. Do you think a physician spends over $100,000 to receive an MD and refuses to practice medicine because they don’t know everything about an illness? Absolutely not. It’s the same way with investing: You do not need to know everything to get started; you just need to understand the basics. I’m sure since you’re reading this article, you’ve either read many other articles or you soon will. Since this is the case, I’m sure you understand the basics of wholesaling. If not, here they are:
- Find a property you can get for cheap.
- Meet an agreed price with the seller.
- Find a buyer who will pay more than you have agreed to pay.
- Close the transaction and move to another property.
Yes, those are the basics; although there are more details to each of these steps, that’s pretty much it.
The Importance of Taking Action to Get Started
So, since you know the basics, what is your excuse not to start? Is it money, is it time, or is it that you need to learn more?
Ask yourself again, what is your excuse not to start? Maybe you are just making excuses and like the thought of being an investor. If that’s the case, acknowledge that and keep dreaming. Those of us who are really working at achieving our dreams do not like to be hindered by someone who just likes to ask questions but who does not utilize the answers they receive or doesn’t put a plan into action. If you’re someone who’s serious about taking steps to truly jump into the investing world, however, you need to start by investing in yourself and in your tools.
Here’s where to start: There’s nothing as simple as this One-Step Action Plan to get started. It will not cost you thousands of dollars like taking a course or hiring a paid mentor. This is the best teacher until you find a genuine mentor.
What will this actionable step do?
- Teach you how to perform research for marketing.
- Teach you how to talk with sellers.
- Show you how to negotiate with sellers.
- Show you how to build your network.
- Guide you to close your first deal.
The One-Step Action Plan
I’m sure you’re wondering by now, what is this One-Step Action Plan? What if I told you that if you take this step, you will be on your way to wholesaling your first deal, with only a little money, a little time, and a little effort? The crazy thing is that many people don’t take this one step, and we all know that a journey begins with a single first step.
This step begins with simply sending mail. When you begin by sending your first batch of mail, no matter how small or large, this will begin the process of learning how to wholesale. If you need a place to begin studying direct mail–what to say, how to say it, and when to say it–there’s no better teacher than experience, and sending mail will give you that experience.
It is imperative that you set a date when to send the first set of letters. First, you will need to pull a list, simply using a site like listsource.com or experian.com and just add in the fields for what you are looking for. For example (and I will not go into depth), if you are going to start where most new wholesalers start, with absentee owners, just add that criteria in the search for non-owner occupied units. Once you have your search details, download your list. I suggest you spend around $100 for this initial list.
Then what, you may ask? Send a letter to that list. There are numerous articles on direct mail here on BiggerPockets, but a great one to start out with is “The Ultimate Guide to Using Direct Mail Advertising to Grow Your Real Estate Business.” The information is out there; you just need to take this one step, and you will begin your journey.
Learning Through Experience
So, you may be asking, “Well, how will sending mail teach me how to do all the things you described above?” Here’s how: Once you begin, you will have to learn those other areas if you want to close a transaction. What better motivation is there than to know a caller that I am talking with is seriously motivated and I may have something here? In the beginning it might not be anything, but you have taken the first step in learning how to get a transaction started.
We all know that experience is the best teacher; however, you will not be able to be learn through experience until you are willing to take that one step of sending out mail. It’s not difficult, but rather the name of the game is consistency; with everything you do, be consistent with it. The funny thing that I’ve learned is that even if you consistently fail, you will eventually get a win, and one win is all it takes.
Here’s a quick motivational story of my own personal journey. I sent letter after letter, mailing after mailing, and after $5,000 in mail and 4 months with no deal, you can guess what I was saying to myself and how I was feeling. However, my consistency, even with failure, eventually paid off. I received a call from a tired landlord, and that call helped me make $19,000, and I am still getting calls now from those mailers that are filling my pipeline with deals. Yes, everyone, I don’t tell you this to mean you need $5,000 to start a mailing campaign; believe me, this was not money that was just laying around, but was money from birddogging, networking, and helping others build their real estate businesses.
What I am trying to do is to get those of you who truly know this is what you want to do finally take that first step. Don’t let what you don’t know keep you from learning and chasing your dream. Start with this One-Step Action Plan, and send out a letter.
For those of you who have not started, please share the reason why and maybe we can motivate you to take that one step!
Leave your comments below.
Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.