What are the best/Tips for people trying to get into Wholesaling
Hello everyone,
I'm 18 years old and I've seen a lot about wholesaling/real estate. I've been studying this past week for wholesale as I think it's the easiest, for the people that have been doing wholesaling for the past 20+ or even their whole lives. What are questions/strategies I should be looking up? What are the main things I should know and where can I find this information? Where did you the Wholesaler that's been doing this since I was in diapers learn everything? What's one of the biggest things your mentors told you? If you didn't have a mentor whats one of the biggest things you found out yourself? How Does a contract work? I feel like I'm not asking the right questions as I'm still a beginner I hope that some of you will be able to help me and lead me in the right way to learn how to be a good Wholesaler.
Thank you!
Quote from @Doug Pretorius:
Quote from @Elijah Dominguez:How do you know when a house has value? What's one of the things you look for in a house that makes you say "I'm going to be able to get a deal out of this and I'll be able to make some profit from it"
Looking at the house won't tell you anything. The deal lies in finding a seller who's motivated by something other than cash. Some can't afford their payments, others want income over time, still others need an unconventional sale to spread out the tax hit. They all have one thing in common: They don't need or want all of their equity out in cash immediately.
When you say “Who’s motivated by something other than cash” What do you mean? could you explain a little better? and whats a “Spread out the tax hit”?
Quote from @Elijah Dominguez:
When you say “Who’s motivated by something other than cash” What do you mean? could you explain a little better? and whats a “Spread out the tax hit”?
What I mean is that retail sellers, the ones you find on the MLS, are motivated by getting as much cash from their sale as possible immediately. They don't have a NEED to sell they only have a WANT as in: "I want to get rich off of the sale of my house so I can buy a bigger one." These are not the sellers you should be talking to if you want to make money.
Wholesale sellers, the ones you have to find yourself through marketing, are motivated by something else. They NEED to sell and they don't care how much cash they get. Basically owning their property has become a problem and they need you to solve that problem for them.
Spreading out the tax hit. Occasionally you'll find a seller like a retiring landlord for example who wants to avoid the huge tax liability of selling their portfolio for cash. This is a prime situation to get some nice seller financing. Seller financing allows them to spread the capital gains out over many years by reporting it as an installment sale.
