{"id":143234,"date":"2022-05-26T12:50:51","date_gmt":"2022-05-26T18:50:51","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=143234"},"modified":"2023-08-07T15:19:31","modified_gmt":"2023-08-07T21:19:31","slug":"want-to-start-investing-start-wholesaling","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/want-to-start-investing-start-wholesaling","title":{"rendered":"Want to Start Investing But Unsure About the Economy? Start Wholesaling"},"content":{"rendered":"\n\n      <iframe loading=\"lazy\" frameborder=\"0\" height=\"200\" scrolling=\"no\" src=\"https:\/\/playlist.megaphone.fm?e=BIGPOC9798202160&#038;light=false\" width=\"100%\"><\/iframe>  \n\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Back in 2002, I made my first deal as a real estate wholesaler.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">I was literally walking the streets looking for a deal when I came across a tired landlord looking to sell his property.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Beforehand, I had already found a buyer and was able to sell the property to them. In the end, after all of the fees and titles, I ended up making a profit of $47k.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">To say this was life-transforming is an understatement.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">If you&#8217;re starting in real estate, you might be skeptical about where investing is headed. Reading the news, you can see that both the Dow Jones and the NASDAQ are down 6% and 17%, respectively.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">While I&#8217;ve never been a fan of the stock market, I am a trading man and do far better in Vegas than I do in stocks. If you do invest, you probably know that the market tends to react in times of uncertainty.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">And boy, were the last 2-3 years uncertain!<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Because the market is so uncertain, be sure to check out the new <a href=\"https:\/\/www.biggerpockets.com\/podcasts\/on-the-market\" data-type=\"URL\" data-id=\"https:\/\/www.biggerpockets.com\/podcasts\/on-the-market\" target=\"_blank\" rel=\"noreferrer noopener\">On The Market<\/a> podcast featuring Jamil and others as they talk about the market, economic trends, and prepare you for the next stage of real estate investing. <\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">For instance, the International Monetary Fund recently held a meeting. Its chairwoman, Kristalina Georgieva, announced that they would become more aggressive on funding.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">When Chairwoman Georgieva speaks, investors listen carefully.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">With this announcement, plus the uncertainty we&#8217;re still facing in other sectors of the economy, bond yields rose, which directly correlates with the economy and explains the rise in mortgage rates.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">But even with all of this going on, you can still start investing in real estate.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">How? Wholesaling.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Wholesaling is probably the easiest and fastest way to get your feet wet as a new real estate investor. Two big things can help kick start your business:&nbsp;<\/span><\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li><span data-preserver-spaces=\"true\">Tools and resources&nbsp;<\/span><\/li>\n\n\n\n<li><span data-preserver-spaces=\"true\">Buyers ready to purchase<\/span><\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Let\u2019s look at both of these.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">1. Invest in a Tool That Helps You Find Properties&nbsp;<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">When it comes to wholesaling, you don&#8217;t need to be at a location physically, at least not yet.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">One of the best things you can do is find a tool or resource, like&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/batchleads.io\/\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">BatchLeads<\/span><\/a><span data-preserver-spaces=\"true\">, that can show you where investors are buying properties in a specific region.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">If you see a neighborhood where the market is hot, properties going for cash, or have a lot of attention, that\u2019s a great sign of a hot market.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">With these tools, you can easily find these ideal markets without physically being there.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span data-preserver-spaces=\"true\">2. Let the Buyers Do the Work for You&nbsp;<\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">You are a legitimate buyer since you have the money to purchase a property. So, if there is a property that has potential, lock it up with a nice due diligence period.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Instead of flying out to the property, send the deal out with a $5,000 mark-up to other investors in the area.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">This gives you a pulse of what buyers are seeing and what they\u2019re telling you about the wholesale market in that area. Let them do the work for you!&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Let them do your due diligence, bring the contractors, do the inspections, and then let them tell you if you\u2019ve got a good deal or if you\u2019re out to lunch.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">When you have a cash buyer, it helps legitimize you as a wholesaler and when you have a property with potential, ask the buyer what they believe would be a suitable selling price.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">You should also go a step further and learn how to&nbsp;<\/span><a class=\"editor-rtfLink\" href=\"https:\/\/www.youtube.com\/watch?v=Q0ZnL-iXt4U&amp;t=641s\" target=\"_blank\" rel=\"noopener\"><span data-preserver-spaces=\"true\">underwrite and comp properties<\/span><\/a><span data-preserver-spaces=\"true\">. By doing this, you can get a good idea of what housing is going for in that area.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">If you\u2019ve got a good deal, you could take that $5,000 wholesale fee and sell the contract to another investor and let them deal with the property themselves.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Boom! You\u2019ve made $5,000.<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Or you could decide that all the buyers want this property, so you choose to keep it for yourself to sell.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Either way, you\u2019ve saved yourself some money from traveling, made $5k, or bought yourself a property.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">Despite what\u2019s happening in the world or the stock market, there are so many opportunities to get started in real estate.&nbsp;<\/span><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><span data-preserver-spaces=\"true\">There&#8217;s no better time to do so! You just need to take the first step.<\/span><\/p>\n\n\n\n<div class=\"wp-block-group border border-gray-200 p-6 rounded-md has-slate-50-background-color has-background\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n    \n  <div \n    id=\"segemnt-view-event-block_624f52525847f\" \n    class=\"  \"\n    x-intersect:enter.once=\"\n      analytics.track('On The Market Blog Sponsor View', {\n        referrer: 'https:\/\/www.biggerpockets.com\/blog\/want-to-start-investing-start-wholesaling',\n              })\n    \">\n    \n  <\/div>\n  \n\n\n<h3 class=\"has-text-align-left mt-0 wp-block-heading\"><strong>On The Market is presented by Fundrise<\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-1024x252.png\" alt=\"\" class=\"wp-image-142373\" width=\"256\" height=\"63\" title=\"\" srcset=\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-1024x252.png 1024w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-300x74.png 300w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black-768x189.png 768w, https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2022\/04\/Fundrise-logo-horizontal-fullcolor-black.png 1380w\" sizes=\"auto, (max-width: 256px) 100vw, 256px\" \/><\/figure>\n\n\n\n<p class=\"mb-0 wp-block-paragraph\" style=\"font-size:16px\"><strong>Fundrise is revolutionizing how you invest in real estate.<\/strong><\/p>\n\n\n\n<p class=\"mt-0 has-slate-600-color has-text-color wp-block-paragraph\" style=\"font-size:16px\">With direct-access to high-quality real estate investments, Fundrise allows you to build, manage, and grow a portfolio at the touch of a button. Combining innovation with expertise, Fundrise maximizes your long-term return potential and has quickly become America\u2019s largest direct-to-investor real estate investing platform.<\/p>\n\n\n\n<div id=button-custom-event-block_624f4a1837234 class='button-custom-event'>\n      <a href=\"https:\/\/t.sidekickopen84.com\/s3t\/c\/5\/f18dQhb0S7kF8cpngfW16gy-_59hl3kW7_k2841CX6NGN35Qwt3rN_mgW56Jw3w1HcgXpf197v5Y04?te=W3R5hFj26QkH2W4hJTY63T3pkxW3Fbt5S3Cdl5cf49M_4s04&#038;si=8000000019411002&#038;pi=6988e0ed-1aea-4af5-9769-8a0de4675eeb\" x-on:click=\"window.analytics.track(&#039;On The Market Blog Sponsor Click&#039;, {\n      referrer: &#039;https:\/\/www.biggerpockets.com\/blog\/want-to-start-investing-start-wholesaling&#039;,\n    });\" class=\" btn-shape inline-block no-underline has-background has-theme-blue-background-color has-text-color has-white-color\" target=\"_blank\" rel=\"noopener\">Learn more about Fundrise<\/a>\n  <\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>Back in 2002, I made my first deal as a real estate wholesaler. I was literally walking the streets looking for a deal when I came across a tired landlord [&hellip;]<\/p>\n","protected":false},"author":613610,"featured_media":143238,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5526,7119],"tags":[2457],"class_list":["post-143234","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-wholesaling","category-biggerpockets-daily","tag-wholesaling"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/143234","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/613610"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=143234"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/143234\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/143238"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=143234"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=143234"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=143234"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}