A 60-Day Action Guide to Wholesaling Your First Property

A 60-Day Action Guide to Wholesaling Your First Property

4 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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So you want to become a real estate wholesaler? Great! Here’s a 60-day action guide to wholesaling your first property.

Introduction

Before we get started, I do not want to give you any false impressions. This is not 60 days to $5,000 without working; it’s 60 days to get you in the game.

I like to use analogies, and I will start with this one to put things in perspective. If you had the opportunity to play one season without pay to make an NFL team the following season, would you take the opportunity? I’d bet you would.

Let’s say you are doing everything your teammates are doing. You are getting up at 5 a.m. to run, and you’re in the weight room, out practicing, and learning the plays with the team. You’re doing everything, but you’re not getting paid. What do you think will happen?

Eventually, you’ll be able to do what they do and make the team. You’ll become a paid player. It’s just the same for real estate wholesaling. You have to be willing to put in the sweat equity to reap the rewards. So let me show what this process looks like. Keep in mind—this is just one way, but there are many ways to close your first deal.

A 60-Day Action Guide to Wholesaling Your First Property

Step 1: Define Your Purpose.

The first step of the process is to ask ourself the following: Why do I want to wholesale property? What is it that I want and need? If you cannot clearly define these things, then stop. Also, your answer cannot be, “I want to make money.” Of course you do, but what’s the purpose of the money? You have to have a reason.

The universe will not work toward bringing what you need if you do not know how you intend on using it. This is like going to a bank and asking for a loan, and when the loan offer asks, “How much do you need?” you say, “As much as you can give me.” The banker then says, “Well, what do you need it for?” and your response is, “I just need it.”

Sounds foolish, doesn’t it? That’s how some of us sound when it comes to our approach to success. We want it but have no idea what it takes or what success looks like. Defining your purpose should not take long, but it will take energy. I tell people to think back to when they were children. What really amazed you? Work toward that and dig deep. Your answer is somewhere in there.

Related: The 6 Most Common Newbie Wholesaling Questions, Answered!

thinking-purpose

Step 2: Join a Team

Using that same analogy of football, let’s say you now have to find a team. In searching for a team, you’re simply looking for a group of people who want to accomplish the same goals you do. As a real estate investor, this is normally easy to do. As long as you find those that truly love real estate, you can find a common purpose with these individuals, and you can help each other achieve common goals.

When you’re wholesaling, you need other investors to network with. You have to be able to pick up the phone and discuss real estate with likeminded individuals. You can find these people at real estate meet ups, cash flow games, and online forums groups like BiggerPockets. You have to make yourself accessible. I often tell people to friend investors on BiggerPockets in their area and start a group or join a group already established. Go to Meetup.com and search “real estate investor groups.” This is where you will begin to learn what they learn, do what they do, and know who they know. Real estate is a contact sport; you have to get out and create contacts.

Step 3: Absorb Everything

Once you find a team, learn as much as you can. Do not be afraid to ask what you may think are dumb questions. Ask and become knowledgeable. There are specific things you need to learn about, including your market, potential buyers, what these buyers are purchasing, and where they’re buying properties.

Let’s start with finding buyers. You can seek out this information by researching all the recent cash transactions that occurred in an area. Without going too far into the details, let’s just say you can contact a local title company and inform them that you’re doing market research and looking for all the recent transactions without financing that occurred in the past year.

Related: How to Set Goals as a Newbie Wholesaler (& Actually Achieve Them!)

Once you receive the addresses, you can search those addresses with the county assessor’s office to look for the tax mailing address. Once you have the tax mailing address, you can then send out letters asking them to contact you if interested. When they call you—because they will call—ask them what they’re looking for. Ask them if they will be ready to move quickly if you find it. Now you have buyers.

This is normally where the fear begins to kick in. Push that fear aside. You will go through the emotional roller coaster of fear, anxiety, low self-esteem, and many other emotions in between.

partners-networking

Step 4: Pay to Play

Education is not free. However, it does not have to be completely unobtainable, either. Building your circle of influence will cost you something. This will, of course, cost you time, effort, and sometimes money. You’ll need to put your money where your mouth is. If you really want to be an investor, you will have to invest in yourself.

You will not be able to reap the benefits without giving up something. While gurus often say that with little effort you can close your first deal and make $5,000, that’s simply not the case. The beginning is the hardest. You need to “pay to play” by taking others to lunch to ask questions, investing in direct mail, or driving for dollars. Also, to increase your circle of influence you will have to pay to be in the environment of those who are doing what you want to do.

Conclusion

This article tackles the psychology of starting out. You have to have a purpose, educate yourself, absorb a lot of material, have the right mindset, and finally, put what you learn to action. Education is the key. If you want to learn to do something new, you have to reprogram your thinking to see it materialize. To quote my college professors, “Put your theories into practice.”

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Newbie wholesalers, where are you in your journey and what has been helpful?

Share with a comment below!