The Hard Question Newbie Wholesalers Should Be Asking Before Jumping In

The Hard Question Newbie Wholesalers Should Be Asking Before Jumping In

2 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.

Experience
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.

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

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“If at first you don’t succeed, try, try again.”

“Don’t give up too easily; persistence pays off in the end.”

We’ve all heard these sayings. Many believe these mantras, but most can’t actually live them—especially new wholesalers.

We live in a society of quitters, and I’m here to challenge you to live a life of self-actualization. Do you actually believe you can be successful at wholesaling?

Many newbies quit before they start and my question to you is: Can you start and finish?

There are many reasons—or shall I say excuses—for quitting. Some are not willing to pay the price for the accomplishments they want to see. They don’t want to study their craft, they don’t care to spend time making mistakes, and they’re fearful of what others will say. They evaluate their possible success based on others failures.

So what does this have to do with real estate? I’ve done over 110 free hours of consultation to newbie wholesalers, and our conversations touch on many different aspects of wholesaling. I’ve come to realize that many people really don’t know what they’re doing, and that’s OK, but you have to be willing to go through the process.

newbie-first-deal

So let’s have a conversation, and I want the conversation to start like this:

You Really Don’t Know What You’re Doing, Do You?

During these free consultations, I ask a few questions, and normally, if the person on the other end cannot answer these questions, I say, “You really don’t know what you’re doing, do you?” I ask this question to see what response I receive. Are they being real with themselves, or are they trying to fake their way through?

Related: What Comes First for Wholesalers: The Buyers List or the Deal?

The intention of this question is not to belittle anyone, but to help these new investors think through whether they have a firm foundation so they don’t ruin their career before they get started.

Let’s Be Honest

Ask yourself the following questions, and remember, let’s be honest:

  • Can you accurately comp a property?
  • Do you actually know the price per square foot for a rehab?
  • How many active units are on the market? Are you familiar with local market trends?
  • Do you know where buyers are buying and why?
  • Why did you choose the market you did versus another?

Remember: If you can’t answer these questions or know where to get the answers, you need to do some more homework. I point this out because starting as a wholesaler is not difficult, but it’s the “…and finish” of “start and finish” that kills newbies.

Related: 5 Costly Pitfalls That Catch Wholesaling Newbies Off Guard

So I ask this questions again: You really don’t know what you’re doing, do you?

If you’re willing to be honest with yourself and you need some help answering theses questions, leave a comment below and let’s talk.

I’d rather you find a way to get the answers than set yourself up for failure.