I met another wholesaler in my area who is more seasoned than me and willing to work with me (I’m a “newbie”).
Tomorrow we have our first meeting, my job is to help him find cash buyers to match with some current homes he has contracts for.
I’m ecstatic of course and he knows I’m a newbie. I’m just wondering if there’s any advice anyone could give in regards to if I should bring anything, what research should I do prior to, am I thinking about it too hard? Lol
Hi @Londyn Garner ! Welcome to BiggerPockets and also to the wonderful world of wholesaling!
If I understand you correctly, he's already got contracts and you'll be trying to sell these deals to cash buyers. If so, you should analyze the dickens out of those contracts to ensure that they actually are deals!
You should be asking your seasoned wholesaler questions like:
- Are these buy-and-hold deals or fix-and-flip deals?
- How did you determine the price to pay the seller?
- How did you determine the price you're asking from the buyer?
- How did you determine that this deal makes sense to a buyer, from a financial standpoint? What are the specific metrics used (for example, many buy-and-hold investors look at cash-on-cash return).
- How much time do we have to find a buyer?
If your wholesaler can't answer questions like these, run away!
Finding serious buyers is pretty easy when you have great deals, and dang near impossible if you don't.
Thanks so much for the help!
@Londyn Garner If you are looking at this from the perspective of finding a mentor/internship...
•Make sure they have a history of success.
•Make sure their history includes failures (a good mentor had some failures that have significantly strengthened their ability to succeed and thus their ability to coach you to succeed).
•Find out his system and his success rate.
•Ask about deals that have been a bust and deals that have gone really well.
•Definitely ask about properties/deals they have taken full cycle (bought, rehabbed, rented, sold, refi’d, etc) based on their business plan. Also
•Ask what current projects are they are working on now, which could give you insight in how you might help them.
•Get referrals (many) -- both active and past.
•Make sure the value is very quantifiable in relation to your realistic goals
•Ask: What advice would you give to someone in my position?
•Ask: What do you wish you'd known when you were just starting out, looking to scale, etc? Make these specific for you.
•Ask: What do you think makes people successful in REI?
•Ask: What are 1-3 books I should read soon?
•What methods have worked and what has not worked?
•What type of advice can he give you just starting out?
•What's the biggest mistake he's made? And how did he overcome it?
It is very important to understand what they learned from least successful experiences and projects, especially the ones that didn't go as planned. You really want to know how they approached them and how they went about remediation steps to get back on track. You also want to know the mistakes they have made and how they went about rectifying those mistakes.
•What team members do you need to get started?
•Finally, don't just stick to REI, get to know as persona (FORD - Family, Occupation, Recreation, Dreams). You'll want to get a feel for who they are, what they value, etc. since as the saying goes, people do business with folks they like, know, and trust.
And more important, ask yourself some questions:
•What is your skill sets?
•What do you enjoy doing with your time?
•What do you dislike?
•What is your end goal?
•Why are you doing this?
•Who are you associating with?
•What are you willing to “pay” in order to achieve all your goals? (time/effort/money)
A good Mentor will ask you all of these questions and more. Otherwise you can become distracted by all of the options and end up in an area of the business you are ill suited for or just dislike.
Ultimately, focus on providing value. According to some opinions you only need to ask one question: “How can I help you?”, but is better if you have a plan ready to answer yourself that question.
•Ask him how you can help him out. What can you do? And what are his expectations?
•Don't make it about you. Make it about him.
•Ask questions that show what you want and how you want to provide more value than the cost of mentoring you.
•Express gratitude, ask how you can help, follow up, pay for the meal/coffee.
Try to have fun and I hope it goes well!
Are you licensed?
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