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Posted almost 8 years ago

Wholesale 101

Hi there,

My name is Louis Davis and I have been doing wholesale real estate investing for the past 5 years now. I have been approached numerous times on what it takes to get started in the business. Often I see myself providing the same answers day in and day out and wanted to write this blog so that hopefully, new investors will be able to get started a lot quicker. 

The number one rule to being a wholesaler (and any business for that matter) is marketing. You have to keep your phones ringing with sellers day after day so that your opportunities are plentiful. The mindset of a wholesaler has to be that if you are not speaking with a seller or in contract talks with one, then you are not in business. The only goal for a wholesaler is to provide discounted properties to your cash buyers. That's it! The only way to find sellers is to market to them. Even if you have marketed to them before, you never know if the situation changed. Keep marketing. I always direct people to YouTube videos of different ways to market. People like Sean Terry and Chris Bruce are excellent at teaching this in extensive lengths. 

The number 2 rule to being a wholesaler is knowing how to run your comparable or comps. If you CAN NOT do this you WILL NOT be able to sell any properties to your buyers and chances are, if they see you keep passing them trash, they will not longer take your calls, text or emails. Running comps and marketing are the 2 most important tasks to being a wholesaler. I run comps so well that realtors depend on my numbers better than there own. And in most cases, I am right. Running comps is an art more than a formula. Even though there is a formula involved that I use I still consider it an art to be able to look at a neighborhood and break down what the property is worth. Whatever you do, please do not take the Zestimate and make that the value of the property. You don't know where they got the figure from and in most cases can not trust it. Do the research yourself and come up with your own value. Your belief of the property value is what sells it. Not the Zestimate. Again, go on YouTube and look up different ways to run comps and make it your own. 

I hope this blog helps new and seasoned investors. I am open to all comments as I am still and will always be in the learning process. I thank BiggerPockets for creating this platform for everybody to help everybody. Talk to you guys soon. On my next blog, I will write about speaking with the seller and negotiations. 

Happy Investing!

Louis Davis-Wholesaler out of Las Vegas 


Comments (14)

  1. Great post, Louis! And wholesalers should also build their cash buyers list... always, always, always build their cash buyers list!!! :)


    1. @Kent Clothier Thanks for reading and I appreciate your feedback. I know you are all about the buyers lists! 


  2. Thank you Tracy. Excellent Blog.


    1. My pleasure Mary. Check out the new blog I just posted. Should take the fear out of speaking with sellers if there is one


  3. Thanks Louis, great post! 


  4. Thanks for your comments Louis. I am in the beginning stages of learning to wholesale. I have 5 properties that I purchased new, with 20% down and are rented since 2005/2006. To me that was an easy way of getting into the investment business. Yes, I rent these  properties and do get a passive income but other than having a good credit score and a good job at the time is what helped put me into a position to do purchase these properties. Now, I am in a different situation. I moved form California to Texas, working in a lower paying job, with a prior CH7, and a foreclosure under my belt. If I am going to make it as an true investor and grow, I must continue fervently seeking as much education as I can get. That's why I read your blog and everyone's comments. 

    Thanks again,

    Tracy Sharpe


    1. Tracy,

      Thank you for reading my blog. One thing about real estate is that it is all action and education. Even though I am not familiar with all ways of investing, that doesn't mean that they can't be learned.  


  5. Thank you for reading everybody and I really appreciate the comments. New blog coming soon. Feel free to reach out with any questions.

    Thank you,

    Louis D.


  6. nice blog Louis.  I provided good information for new investors like me.


    1. Jay, It was my pleasure. Be on the lookout for more content.

  7. This is awesome! 

    I am new here. Reading and trying to learn how to begin wholesaling. Looking forward to learning the ropes!  

    Thanks for sharing! 


    1. Tania,

      The great thing about wholesaling is that the rules are pretty much the same. You will have to do a little research on the rules in your area however, it is all about the contracts, title companies or real estate attorneys. Thanks for reading. 


  8. Good article Louis.

    Spot on content. Must have daily contacts, contacts, contacts....as well as know what the ARV is in order to make it a great deal.

    Thanks,

    Mike Krigbaum


    1. Mike, Thank you for your reply. I hope you like the next blog coming up soon