Steps to wholesaling
New to Real Estate · San Marcos TX · Member since 2022 · 13 posts · 4 votes
Steps to wholesaling
Most Popular Reply
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3yQuote from @Rebekah Miller:
A mentor can really accelerate your growth, no matter what level you're currently at. They can sharpen skills you already have, or expose you to things you've never even thought of. Unfortunately, a good mentor isn't always easy to find.
Think about it. You're asking someone to spend a lot of time and energy to share what they've spent years - maybe decades - learning and developing. That's a lot to ask of a complete stranger! Why would they want to invest in you? How do they know their investment will not be wasted? What can you offer in return?
You are far more likely to find a mentor through in-person networking and building relationships. The mentor will have an opportunity to know you, see your determination and will, and then decide to pour their time and energy into helping you develop. Go to NETWORK at the top of your screen and search for other investors and investment groups in your area. You can also check meetup.com or search facebook for real estate investment groups, clubs, or meetings in your area. Start building relationships and looking for someone to partner with.
How to find a mentor
Not every successful person will make a good mentor. Not every good mentor is a good mentor for you. Here are a few things to look for:
1. They should have current experience and plenty of it
2. A love for real estate investing
3. A desire and ability to share their knowledge
4. The ability to speak the hard truth with empathy
It doesn't matter how good a mentor is: if they don't mesh with you personally, it's going to be a disaster. That's why I stress the importance of building a relationship first. You need someone that clicks with you personally before engaging in a mentor/mentee relationship with the dedication and stress that may be involved.
Where to find a mentor
Start by looking within your existing network. Do you have a family member or friend that's achieved what you want to achieve? Remember, it doesn't need to be Grant Cardone! As a beginner, you can learn a lot from your uncle with a few rentals in another state or a co-worker that's on their second house hack. Make a list and start looking closely at each one to see if they are an option.
If you can't find someone within your network, expand your network. This entails building personal / working relationships with people successful in the field. You could do this in the BiggerPockets forum, but it's hard to build relationships with people from other states behind a keyboard. Get out and rub elbows with local investors by joining a real estate investor group in your area. Even if you have to travel a couple hours, you have a much better chance of finding someone.
How to approach a mentor
Once you've found a likely candidate, it's time to reach out and ask. Some tips:
1. Have a goal. Let them know - as specifically as possible - what you are trying to achieve. If you walked up to Michael Jordan and said, "I want to be learn sports" he would walk away. If you told him you have been playing pickup games for the past year and need help improving your jump shot, now he has evidence you're motivated and a specific goal he can quickly help you work towards. Example: "I would like to build financial independence through real estate investing. I'm not sure what the right path is, but I've been reading about investing in owner-occupied, multi-family properties. I've crunched the numbers and if I could purchase three four-plexes in the next ten years, that would give me the financial independence I'm looking for."
2. Make a short list of questions to ask. Even though they are the expert, you still need to ensure they are a good fit for you. This is an opportunity for you to confirm they have the expertise you need. You don't want to start a relationship to learn about storage units and then find out they only invest in single-family homes.
3. Practice your pitch! How you approach the mentor demonstrates how you will approach real estate investing. If you don't do the homework, you will give them the impression you may not be up to the task of doing the homework with real estate investing. You should be able to express your goal in one minute and then expand if questions are asked. It sounds cheesy, but the best way to prepare is to work with a friend or two and role play. Think about what questions the potential mentor may ask and how you would answer. Practice these answers until they roll of the tongue. Be prepared to demonstrate what you've learned so far and how hard you will work to put their advice to work. This is a two-way interview, so have a short list of questions to ask the mentor (What books do you recommend I read to gain a better understanding? What, specifically, would you recommend my first step be? How can I help you achieve your goals in exchange for you helping me?)
4. Know how to take constructive criticism. A smooth sea never produced a skilled sailor (Franklin D. Roosevelt). You will make mistakes. You won't understand something and need it beaten into your head ten times. If you feel they're being too harsh, think about their intent. Maybe they communicate differently but have good intentions. If they're not challenging you, or your personalities just don't mesh, be prepared to give them honest feedback. Let them know if they're not a good fit and you need to move on.
5. Pay them back. A successful investor's time may be worth hundreds of dollars per hour. They're willing to share it with you for free, so try to find ways to pay them back. I've heard of mentees that started out cleaning up construction areas on a flip at the end of each work day or picking up supplies at Home Depot and delivering them to the job site. Some mentees will act as a bloodhound for the mentor, knocking on doors, driving for dollars, scouring the internet, making cold calls, or performing other services that help the mentor find new deals. Your mentor has needs; try to meet them and develop a mutually beneficial relationship.
A mentor can be very beneficial to your growth, but it's not as simple as one post on a forum full of strangers. Put in the effort, build relationships, prove your value, and improve your odds of finding someone to help launch you on your path.
The DIY Landlord Book4.7247 Reviews
22 Replies
- Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes3y
I wholesale in Bell county & Austin, if you have specific questions I will hop on a call with you.
- New to Real Estate · San Marcos TX · Member since 2022 · 13 posts · 4 votes3y
Quote from @Eliott Elias:
I wholesale in Bell county & Austin, if you have specific questions I will hop on a call with you.
Thank you! That would be amazing. Ideally, I would love a mentor. I learn hands on. I know its asking a lot but I'm interested in more of a "day in the life." To hear and see how other wholesaler's work. As I said, I "know" the motions I just need guidance and a push. My finances have been pulled too thin. I no longer can sit back and research. I have to jump in - sink or float.
- Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes3y
Quote from @Rebekah Miller:
A mentor can really accelerate your growth, no matter what level you're currently at. They can sharpen skills you already have, or expose you to things you've never even thought of. Unfortunately, a good mentor isn't always easy to find.
Think about it. You're asking someone to spend a lot of time and energy to share what they've spent years - maybe decades - learning and developing. That's a lot to ask of a complete stranger! Why would they want to invest in you? How do they know their investment will not be wasted? What can you offer in return?
You are far more likely to find a mentor through in-person networking and building relationships. The mentor will have an opportunity to know you, see your determination and will, and then decide to pour their time and energy into helping you develop. Go to NETWORK at the top of your screen and search for other investors and investment groups in your area. You can also check meetup.com or search facebook for real estate investment groups, clubs, or meetings in your area. Start building relationships and looking for someone to partner with.
How to find a mentor
Not every successful person will make a good mentor. Not every good mentor is a good mentor for you. Here are a few things to look for:
1. They should have current experience and plenty of it
2. A love for real estate investing
3. A desire and ability to share their knowledge
4. The ability to speak the hard truth with empathy
It doesn't matter how good a mentor is: if they don't mesh with you personally, it's going to be a disaster. That's why I stress the importance of building a relationship first. You need someone that clicks with you personally before engaging in a mentor/mentee relationship with the dedication and stress that may be involved.
Where to find a mentor
Start by looking within your existing network. Do you have a family member or friend that's achieved what you want to achieve? Remember, it doesn't need to be Grant Cardone! As a beginner, you can learn a lot from your uncle with a few rentals in another state or a co-worker that's on their second house hack. Make a list and start looking closely at each one to see if they are an option.
If you can't find someone within your network, expand your network. This entails building personal / working relationships with people successful in the field. You could do this in the BiggerPockets forum, but it's hard to build relationships with people from other states behind a keyboard. Get out and rub elbows with local investors by joining a real estate investor group in your area. Even if you have to travel a couple hours, you have a much better chance of finding someone.
How to approach a mentor
Once you've found a likely candidate, it's time to reach out and ask. Some tips:
1. Have a goal. Let them know - as specifically as possible - what you are trying to achieve. If you walked up to Michael Jordan and said, "I want to be learn sports" he would walk away. If you told him you have been playing pickup games for the past year and need help improving your jump shot, now he has evidence you're motivated and a specific goal he can quickly help you work towards. Example: "I would like to build financial independence through real estate investing. I'm not sure what the right path is, but I've been reading about investing in owner-occupied, multi-family properties. I've crunched the numbers and if I could purchase three four-plexes in the next ten years, that would give me the financial independence I'm looking for."
2. Make a short list of questions to ask. Even though they are the expert, you still need to ensure they are a good fit for you. This is an opportunity for you to confirm they have the expertise you need. You don't want to start a relationship to learn about storage units and then find out they only invest in single-family homes.
3. Practice your pitch! How you approach the mentor demonstrates how you will approach real estate investing. If you don't do the homework, you will give them the impression you may not be up to the task of doing the homework with real estate investing. You should be able to express your goal in one minute and then expand if questions are asked. It sounds cheesy, but the best way to prepare is to work with a friend or two and role play. Think about what questions the potential mentor may ask and how you would answer. Practice these answers until they roll of the tongue. Be prepared to demonstrate what you've learned so far and how hard you will work to put their advice to work. This is a two-way interview, so have a short list of questions to ask the mentor (What books do you recommend I read to gain a better understanding? What, specifically, would you recommend my first step be? How can I help you achieve your goals in exchange for you helping me?)
4. Know how to take constructive criticism. A smooth sea never produced a skilled sailor (Franklin D. Roosevelt). You will make mistakes. You won't understand something and need it beaten into your head ten times. If you feel they're being too harsh, think about their intent. Maybe they communicate differently but have good intentions. If they're not challenging you, or your personalities just don't mesh, be prepared to give them honest feedback. Let them know if they're not a good fit and you need to move on.
5. Pay them back. A successful investor's time may be worth hundreds of dollars per hour. They're willing to share it with you for free, so try to find ways to pay them back. I've heard of mentees that started out cleaning up construction areas on a flip at the end of each work day or picking up supplies at Home Depot and delivering them to the job site. Some mentees will act as a bloodhound for the mentor, knocking on doors, driving for dollars, scouring the internet, making cold calls, or performing other services that help the mentor find new deals. Your mentor has needs; try to meet them and develop a mutually beneficial relationship.
A mentor can be very beneficial to your growth, but it's not as simple as one post on a forum full of strangers. Put in the effort, build relationships, prove your value, and improve your odds of finding someone to help launch you on your path.The DIY Landlord Book4.7247 Reviews - 3yNicholas L.Pro MemberFlipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
no offense intended, but wholesaling is difficult, and I don't believe it's a way to quickly generate cash. if it's something you want to do, go for it. but i always get nervous when I see new investors saying they are going to "wholesale to generate cash" or "flip to generate cash."
if you have specific questions, just post them here.
- Investor · Atlanta, GA · Member since 2020 · 33 posts · 14 votes3y
I would go to real estate group meetings and start talking with everybody... Find just one investor that is buying, and make your life abut finding him a property... if you do, you get your first sale and probably he will love you...
- New to Real Estate · San Marcos TX · Member since 2022 · 13 posts · 4 votes3y
Quote from @Nicholas L.:
no offense intended, but wholesaling is difficult, and I don't believe it's a way to quickly generate cash. if it's something you want to do, go for it. but i always get nervous when I see new investors saying they are going to "wholesale to generate cash" or "flip to generate cash."
if you have specific questions, just post them here.
No offense taken! Either way, with or without my financial burden I need to jump in and learn as much as possible. I will go to networking groups/meetings.
does anyone have a recommendation for a real estate lawyer? I’ll need an assignment contract. Any advice on my open pitch- for when I am speaking to the homeowner trying to convince them selling below market value to me is a good idea… - New to Real Estate · San Marcos TX · Member since 2022 · 13 posts · 4 votes3y
Quote from @Nicolas Londono:
I would go to real estate group meetings and start talking with everybody... Find just one investor that is buying, and make your life abut finding him a property... if you do, you get your first sale and probably he will love you...
Yes!!! This is my plan- thank you
- Investor · Tampa, FL · Member since 2020 · 287 posts · 152 votes3y
@Rebekah Miller Hey Rebekah, feel free to shoot me a dm and we can hop on a call. I’ve wholesaled many deals in the Tampa area and I can help answer some of your questions and offer advice.
- New to Real Estate · San Marcos TX · Member since 2022 · 13 posts · 4 votes3y
Quote from @Joseph Stern:
@Rebekah Miller Hey Rebekah, feel free to shoot me a dm and we can hop on a call. I’ve wholesaled many deals in the Tampa area and I can help answer some of your questions and offer advice.
That would be amazing! Thank you so much!
- Investor · Costa Mesa, CA · Member since 2016 · 1k+ posts · 1k+ votes3y
Quote from @Nicholas L.:
no offense intended, but wholesaling is difficult, and I don't believe it's a way to quickly generate cash. if it's something you want to do, go for it. but i always get nervous when I see new investors saying they are going to "wholesale to generate cash" or "flip to generate cash."
if you have specific questions, just post them here.
This.
- Member since 2022 · 40 posts · 34 votes3y
Quote from @Nicholas L.:
no offense intended, but wholesaling is difficult, and I don't believe it's a way to quickly generate cash. if it's something you want to do, go for it. but i always get nervous when I see new investors saying they are going to "wholesale to generate cash" or "flip to generate cash."
if you have specific questions, just post them here.
@Nicholas L. It is great to hear someone say this, because it has been my mindset as well that wholesaling is a quick way to generate cash. Thanks for being honest that it may not be.
Rebekah, I am a newcomer to this as well, although I am in NC. If I pick up any helpful tips or tricks, I would be happy to exchange them with you. I am very serious about entering REI and I think you and I think much the same way. I have been thinking ahead about how I am going to talk to homeowners, lawyers, deal with contracts, etc. because I am super cautious. Its hard to jump in, but I hope that we both can and that we succeed.
- New to Real Estate · San Marcos TX · Member since 2022 · 13 posts · 4 votes3y
Everyone: Let me be clear. I understand it will be hard work. I am willing to put in the work. I am not here to look for a "get rich quick" scheme. I shouldn't have disclosed my financial situation however I wanted to shine the light that I am serious. Let's get to work! Thank you to everyone that gave a tidbit of advice here and there. And especially thank you to those that have reach out personally to help. I AM DONE SITTING IN THE PASSANGER SEAT I am ready to drive but like any new driver I need someone to guide me.
- New to Real Estate · San Marcos TX · Member since 2022 · 13 posts · 4 votes3y
Quote from @Greg C.:
Quote from @Nicholas L.:
no offense intended, but wholesaling is difficult, and I don't believe it's a way to quickly generate cash. if it's something you want to do, go for it. but i always get nervous when I see new investors saying they are going to "wholesale to generate cash" or "flip to generate cash."
if you have specific questions, just post them here.
@Nicholas L. It is great to hear someone say this, because it has been my mindset as well that wholesaling is a quick way to generate cash. Thanks for being honest that it may not be.
Rebekah, I am a newcomer to this as well, although I am in NC. If I pick up any helpful tips or tricks, I would be happy to exchange them with you. I am very serious about entering REI and I think you and I think much the same way. I have been thinking ahead about how I am going to talk to homeowners, lawyers, deal with contracts, etc. because I am super cautious. Its hard to jump in, but I hope that we both can and that we succeed.
Yes, Greg! I know it won't be easy. I am ready to work! I mis-phrased my intentions. I dont mean "hey guys, need money quick. tell me how"
I have been doing research for so long that at some point I just need to hit the ground running. If I fail - I'll learn. If I succeed, I will learn. Either way, sitting here, reading, calling, listening to podcasts won't make me money. Let's stay in touch! Maybe we can bounce ideas off each other! GL - New to Real Estate · Northridge, CA · Member since 2019 · 42 posts · 15 votes3y
Hello, I am a wholesaler myself . being in your position just a few months ago the best thing i could have done is to do what majority of others are saying which is to network. Have your goal have your skills ready what you can offer to do and just start. Be consistent with one plan and adopt a rich mindset ! Have a reason why you want to wholesale and what you will do with your check (attach an emotion to reason). https://www.talktopeople.com/ is a great link for resources ( I also rec Jerry Nortons Videos) - Would like to hear any feed back on this post, happy holidays!
- New to Real Estate · Northridge, CA · Member since 2019 · 42 posts · 15 votes3y
Quote from @Nathan Gesner:
Quote from @Rebekah Miller:
A mentor can really accelerate your growth, no matter what level you're currently at. They can sharpen skills you already have, or expose you to things you've never even thought of. Unfortunately, a good mentor isn't always easy to find.
Think about it. You're asking someone to spend a lot of time and energy to share what they've spent years - maybe decades - learning and developing. That's a lot to ask of a complete stranger! Why would they want to invest in you? How do they know their investment will not be wasted? What can you offer in return?
You are far more likely to find a mentor through in-person networking and building relationships. The mentor will have an opportunity to know you, see your determination and will, and then decide to pour their time and energy into helping you develop. Go to NETWORK at the top of your screen and search for other investors and investment groups in your area. You can also check meetup.com or search facebook for real estate investment groups, clubs, or meetings in your area. Start building relationships and looking for someone to partner with.
How to find a mentor
Not every successful person will make a good mentor. Not every good mentor is a good mentor for you. Here are a few things to look for:
1. They should have current experience and plenty of it
2. A love for real estate investing
3. A desire and ability to share their knowledge
4. The ability to speak the hard truth with empathy
It doesn't matter how good a mentor is: if they don't mesh with you personally, it's going to be a disaster. That's why I stress the importance of building a relationship first. You need someone that clicks with you personally before engaging in a mentor/mentee relationship with the dedication and stress that may be involved.
Where to find a mentor
Start by looking within your existing network. Do you have a family member or friend that's achieved what you want to achieve? Remember, it doesn't need to be Grant Cardone! As a beginner, you can learn a lot from your uncle with a few rentals in another state or a co-worker that's on their second house hack. Make a list and start looking closely at each one to see if they are an option.
If you can't find someone within your network, expand your network. This entails building personal / working relationships with people successful in the field. You could do this in the BiggerPockets forum, but it's hard to build relationships with people from other states behind a keyboard. Get out and rub elbows with local investors by joining a real estate investor group in your area. Even if you have to travel a couple hours, you have a much better chance of finding someone.
How to approach a mentor
Once you've found a likely candidate, it's time to reach out and ask. Some tips:
1. Have a goal. Let them know - as specifically as possible - what you are trying to achieve. If you walked up to Michael Jordan and said, "I want to be learn sports" he would walk away. If you told him you have been playing pickup games for the past year and need help improving your jump shot, now he has evidence you're motivated and a specific goal he can quickly help you work towards. Example: "I would like to build financial independence through real estate investing. I'm not sure what the right path is, but I've been reading about investing in owner-occupied, multi-family properties. I've crunched the numbers and if I could purchase three four-plexes in the next ten years, that would give me the financial independence I'm looking for."
2. Make a short list of questions to ask. Even though they are the expert, you still need to ensure they are a good fit for you. This is an opportunity for you to confirm they have the expertise you need. You don't want to start a relationship to learn about storage units and then find out they only invest in single-family homes.
3. Practice your pitch! How you approach the mentor demonstrates how you will approach real estate investing. If you don't do the homework, you will give them the impression you may not be up to the task of doing the homework with real estate investing. You should be able to express your goal in one minute and then expand if questions are asked. It sounds cheesy, but the best way to prepare is to work with a friend or two and role play. Think about what questions the potential mentor may ask and how you would answer. Practice these answers until they roll of the tongue. Be prepared to demonstrate what you've learned so far and how hard you will work to put their advice to work. This is a two-way interview, so have a short list of questions to ask the mentor (What books do you recommend I read to gain a better understanding? What, specifically, would you recommend my first step be? How can I help you achieve your goals in exchange for you helping me?)
4. Know how to take constructive criticism. A smooth sea never produced a skilled sailor (Franklin D. Roosevelt). You will make mistakes. You won't understand something and need it beaten into your head ten times. If you feel they're being too harsh, think about their intent. Maybe they communicate differently but have good intentions. If they're not challenging you, or your personalities just don't mesh, be prepared to give them honest feedback. Let them know if they're not a good fit and you need to move on.
5. Pay them back. A successful investor's time may be worth hundreds of dollars per hour. They're willing to share it with you for free, so try to find ways to pay them back. I've heard of mentees that started out cleaning up construction areas on a flip at the end of each work day or picking up supplies at Home Depot and delivering them to the job site. Some mentees will act as a bloodhound for the mentor, knocking on doors, driving for dollars, scouring the internet, making cold calls, or performing other services that help the mentor find new deals. Your mentor has needs; try to meet them and develop a mutually beneficial relationship.
A mentor can be very beneficial to your growth, but it's not as simple as one post on a forum full of strangers. Put in the effort, build relationships, prove your value, and improve your odds of finding someone to help launch you on your path.This is Great info - i will definitely put this into practice. It's answer's ive been asking myself - so Thank you so much.
- Real Estate Broker · Chicago, IL · Member since 2014 · 2k+ posts · 1k+ votes3y
Quote from @Rebekah Miller:
I am a newbie... stuck in analysis paralysis. I "know how" to find the homes, how to possibly contact the owners, how to locate / assign contract. But all of this is from books and podcasts. I need to get in! My family's financial situation has changed dramatically, and I have to get in to help. Can someone help me put my wheels in motion? My long-term goal is to invest in real estate - long term rental properties and flip. Wholesaling will help with the money needed to start off. Any advice or help would be so much appreciated!
Along with finding a local mentor or even in out of town mentor I recommend you do the following:
1. Do a double/triple check on the laws in your state regarding wholesaling. Some states have put limits on what you can do with and without a license. For example, you can assign one contract per year in Illinois without a license. If you get caught doing more than one, the fine is $25K. Pretty steep. I don't know the law where you reside but do some research to make sure you understand what it is.
2. While not mandatory but certainly helpful, consider getting a real estate license. Why? Access to the tools that will allow you to service your end buyer such as providing them with accurate Comparative Market Analysis (CMA). An alternative to getting a license is to become an assistant to a broker that will allow you access to the MLS.
3. Consider investing in a system to automate your business. In your post, you indicated that you know how to find the homes and contact the owners,...... These are the leads. Since you say you're in this as a long-term goal- The eventual challenge with the business is managing the leads that you'll eventually find. Some will say yes to your offer, but many will say no. That is a no for today but months from that first contact that no may turn into a yes. By the way- What I'm referring to here is not just wholesaling- It's finding sellers period; whether you're going to wholesale or just keep the property for yourself to rent or flip.
4. Since your long-term goal is to invest in rentals and/or flip properties then you should consider investing in learning how to estimate what it will take to update a property. It's one of the biggest challenges. Learning how to do it right as a wholesaler will then serve you in the long run when you're doing it for yourself.
5. In your initial post you seem to focus on knowing how to locate owners and find the deals. But I see nothing in your post about a buyer's list. As a newbie, once you get a deal under contract who are you going to assign the deal to? You can't wait to get deals under contract and then go look for a buyer. You should be working on the potential buyer list now. - Rental Property Investor · Fremont, CA · Member since 2018 · 38 posts · 8 votes3y
Quote from @Nathan Gesner:
Quote from @Rebekah Miller:
A mentor can really accelerate your growth, no matter what level you're currently at. They can sharpen skills you already have, or expose you to things you've never even thought of. Unfortunately, a good mentor isn't always easy to find.
Think about it. You're asking someone to spend a lot of time and energy to share what they've spent years - maybe decades - learning and developing. That's a lot to ask of a complete stranger! Why would they want to invest in you? How do they know their investment will not be wasted? What can you offer in return?
You are far more likely to find a mentor through in-person networking and building relationships. The mentor will have an opportunity to know you, see your determination and will, and then decide to pour their time and energy into helping you develop. Go to NETWORK at the top of your screen and search for other investors and investment groups in your area. You can also check meetup.com or search facebook for real estate investment groups, clubs, or meetings in your area. Start building relationships and looking for someone to partner with.
How to find a mentor
Not every successful person will make a good mentor. Not every good mentor is a good mentor for you. Here are a few things to look for:
1. They should have current experience and plenty of it
2. A love for real estate investing
3. A desire and ability to share their knowledge
4. The ability to speak the hard truth with empathy
It doesn't matter how good a mentor is: if they don't mesh with you personally, it's going to be a disaster. That's why I stress the importance of building a relationship first. You need someone that clicks with you personally before engaging in a mentor/mentee relationship with the dedication and stress that may be involved.
Where to find a mentor
Start by looking within your existing network. Do you have a family member or friend that's achieved what you want to achieve? Remember, it doesn't need to be Grant Cardone! As a beginner, you can learn a lot from your uncle with a few rentals in another state or a co-worker that's on their second house hack. Make a list and start looking closely at each one to see if they are an option.
If you can't find someone within your network, expand your network. This entails building personal / working relationships with people successful in the field. You could do this in the BiggerPockets forum, but it's hard to build relationships with people from other states behind a keyboard. Get out and rub elbows with local investors by joining a real estate investor group in your area. Even if you have to travel a couple hours, you have a much better chance of finding someone.
How to approach a mentor
Once you've found a likely candidate, it's time to reach out and ask. Some tips:
1. Have a goal. Let them know - as specifically as possible - what you are trying to achieve. If you walked up to Michael Jordan and said, "I want to be learn sports" he would walk away. If you told him you have been playing pickup games for the past year and need help improving your jump shot, now he has evidence you're motivated and a specific goal he can quickly help you work towards. Example: "I would like to build financial independence through real estate investing. I'm not sure what the right path is, but I've been reading about investing in owner-occupied, multi-family properties. I've crunched the numbers and if I could purchase three four-plexes in the next ten years, that would give me the financial independence I'm looking for."
2. Make a short list of questions to ask. Even though they are the expert, you still need to ensure they are a good fit for you. This is an opportunity for you to confirm they have the expertise you need. You don't want to start a relationship to learn about storage units and then find out they only invest in single-family homes.
3. Practice your pitch! How you approach the mentor demonstrates how you will approach real estate investing. If you don't do the homework, you will give them the impression you may not be up to the task of doing the homework with real estate investing. You should be able to express your goal in one minute and then expand if questions are asked. It sounds cheesy, but the best way to prepare is to work with a friend or two and role play. Think about what questions the potential mentor may ask and how you would answer. Practice these answers until they roll of the tongue. Be prepared to demonstrate what you've learned so far and how hard you will work to put their advice to work. This is a two-way interview, so have a short list of questions to ask the mentor (What books do you recommend I read to gain a better understanding? What, specifically, would you recommend my first step be? How can I help you achieve your goals in exchange for you helping me?)
4. Know how to take constructive criticism. A smooth sea never produced a skilled sailor (Franklin D. Roosevelt). You will make mistakes. You won't understand something and need it beaten into your head ten times. If you feel they're being too harsh, think about their intent. Maybe they communicate differently but have good intentions. If they're not challenging you, or your personalities just don't mesh, be prepared to give them honest feedback. Let them know if they're not a good fit and you need to move on.
5. Pay them back. A successful investor's time may be worth hundreds of dollars per hour. They're willing to share it with you for free, so try to find ways to pay them back. I've heard of mentees that started out cleaning up construction areas on a flip at the end of each work day or picking up supplies at Home Depot and delivering them to the job site. Some mentees will act as a bloodhound for the mentor, knocking on doors, driving for dollars, scouring the internet, making cold calls, or performing other services that help the mentor find new deals. Your mentor has needs; try to meet them and develop a mutually beneficial relationship.
A mentor can be very beneficial to your growth, but it's not as simple as one post on a forum full of strangers. Put in the effort, build relationships, prove your value, and improve your odds of finding someone to help launch you on your path.Good info. Thank you for sharing this.
- 3yJay ThomasPro MemberReal Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
Wholesaling is one of the most important steps in real estate investing, and it can be a great way to make money with minimal risk. It involves buying properties below market value and then quickly reselling them to buyers for a profit. By wholesaling real estate, you can leverage your capital to generate more profits than if you had bought the property outright. In addition, wholesaling requires less time and effort than traditional real estate investments, so it’s an attractive option for those who want to get into the business without having to devote too much time or resources. With wholesaling, you have the opportunity to earn big returns with minimal effort - something that all investors should consider!
- Investor · Austin TX · Member since 2016 · 1k+ posts · 2k+ votes3y
Hi Rebekah! Analysis paralysis gets a lot of newbies spinning their wheels. As someone with 8 years of full time wholesaling experience, it's time to just jump in. The time for watching Youtube videos and listening to podcasts is over and its time to take action. You will never know everything you need to know. Much of your real estate education is going to come from on the job learning. When I used to mentor I had all my students do this exercise. Go through a practice run. I would assign them a random property and have them go through the motions as if it were a real live deal. They had to run the numbers, do the comps and calculate the ARV. Then determine what they would offer based on a repair estimate that I made up for them to use. Next they had to practice negotiating with the seller to get them to accept the offer. I made them write up a real contract--If you arent familiar with the TREC contract I suggest you do that before you start making real offers. And I made them locate investor friendly title companies. Going through these motions helped them determine where their weak points were. They were able to see where the holes in their knowledge were so we knew what things to spend some more time on before they started talking to real live sellers. Contracts was a big one. Everyone says they know what to do until its time to write a contract. Then there is a lot of ummmmm....
In TX the TREC contract is your best friend. You should always always use it. It makes sellers feel more comfortable because its the same contract they used when they bought the house you are trying to buy from them. You will also encounter sellers who want to send your contract to an attorney. If you have a 1 page contract you got from Google you can bet the seller's attorney is going to advise them to run for the hills and you might not hear from them again. With the TREC I dont sweat it. Ive actually had a situation where the seller sent the contract to an attorney and as soon as the attorney saw it was the TREC they just said you're good, move forward. So definitely dont skip that part.
Another thing that also gets missed A LOT is title company. Not all title companies are created equal. Many of them aren't familiar with assignments and double closings and you dont want to use those title companies. I could tell you some stories about people who have lost deals or almost lost deals but please take my word on this and find yourself an investor friendly title company. And make sure you bring them treats whenever you close a deal. In real estate relationships are everything. Having people who like you, trust you and want you to succeed is priceless.
Lastly, the market has shifted quite a bit from where it was 12 months ago or even 6 months ago. I made an offer to a seller this week for a property that appraised for 600K back in August. My offer was 365K and he is probably going to accept it. So my advice to you is to find buyers. Like right now. Today and tomorrow and all this week, start looking for buyers who are actually buying properties right now. Find them the deals that they want. Its not like it was 12 months ago where anything you put under contract would sell. Buyers have shifted their criteria and/or exit strategies and as wholesalers we have to shift as well. Most of the deals Im looking at now are in tertiary markets like Temple, Belton, Killeen, Taylor and Hutto. Because thats where my buyers want to buy deals.
I hope this is helpful to you! If you have any other questions, feel free to reach out. I am just north of you in SW Austin. Happy to help!
- Bloomsburg, PA · Member since 2023 · 7 posts · 4 votes3y
Hi Rebekah!
Brand new newbie here myself. I can relate completely to you fear you are having. I've always dreamed of owning real estate, and generating the long term wealth were I am not reliant on the boss man. Again! I am at the turning point where my monies are ready. I think the best way I deal with the "Paralysis" is just education. Some people may say this is counter intuitive, but I find comfort in understanding. The paralysis may be coming from the unknown. When you feel you have a grasp on what you need to do it should come easier.
I myself, have realized that wait a second, I have the money, I am able to use this HELOC, and then just make a cash offer, HELOC again, Fix, and repeat. I am looking at several Multifamily's. So, I am awaiting a bit of paperwork, and I will be jumping head first in multiple times this year.
I Love the Real Estate Rookie PodCast, I've read a few books, Love rich dad poor dad, Read "Listened" to it three times already. I listen to a few other podcasts not even affiliated with Bigger pockets. I watch the youtube videos, and listen to the bigger pocket guys. I'm reading their start up guy. I follow @amanda_han_cpa on instagram. All of these people are here to help us because yes they make money, but 2 they love to see success. I hope my pep talk helped. Feel free to reach out to me! Oh, and I've found local facebook groups for local investors is great way to meet people in your area. We have a local monthly meet up this Wednesday!
- 3yAlfath AhmedBusiness MemberReal Estate Agent · Columbus, OH · Member since 2022 · 1k+ posts · 1k+ votesI have contacts with a lot of wholesalers here in Columbus and I personally find a ton of off-market deals. I can definitely walk you through the normal procedures of finding deals and assigning the contracts. Let me know if you need any help.
Quote from @Rebekah Miller:
I am a newbie... stuck in analysis paralysis. I "know how" to find the homes, how to possibly contact the owners, how to locate / assign contract. But all of this is from books and podcasts. I need to get in! My family's financial situation has changed dramatically, and I have to get in to help. Can someone help me put my wheels in motion? My long-term goal is to invest in real estate - long term rental properties and flip. Wholesaling will help with the money needed to start off. Any advice or help would be so much appreciated!
ReafCo | Ahmed Group 536 Reviews - 3yWale LawalBusiness MemberReal Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
The following wholesaling real estate step by step guide will help answer your questions:
Mind your due diligence
Build a buyers list
Market to motivated sellers
Get a property under contract
Find your end buyer
Assign the contract
Close the deal and cash your checkMind Your Due Diligence
The first step to any wholesale deal involves researching and strategizing. Spend time educating yourself on the overall process so you know what to expect before you start searching for properties. Reading through this wholesale real estate step by step is a great place to start, but additional resources can be helpful as well. A great place to start is by attending a real estate event in your area. Network with other investors, and sit down with someone who has experience wholesaling in your area. This will help you get a better feel for the process, and it could lead to a helpful industry connection down the road. As you learn what to expect, you will be better prepared to conduct local market research and devise a business plan.
Build A Buyer’s List
A buyer’s list is essentially a category of potentially interested investors, entrepreneurs, and homebuyers. Building a list of usable names will certainly put your networking skills to the test, but it will be well worth it. A strong buyer’s list will make sure you always know where to go with deals. Buyers can be found in a few places ranging from direct mail to bandit signs, though one of the best ways to build a list is through personal connections. Connect with other real estate professionals to expand your network, and don’t forget to jot down the contact information of anyone you see as a potential lead. Daniel Chan from Marketplace Fairness suggests “the best way to build a dependable buyers list is to network with other investors and real estate professionals. This way, investors can find potential buyers who are interested in purchasing wholesale properties”.
Market To Motivated Sellers
After crafting a solid buyer’s list, it’s time to start searching for motivated sellers. A motivated seller is any homeowner eager to get rid of their property. This situation can happen for several reasons: they could be behind on mortgage payments and hoping to move, or maybe they recently inherited a property they aren’t sure what to do with. Whatever the reason, motivated sellers are your best bet at getting a property under contract for a good price.
To find motivated sellers, try targeting lists of delinquent taxpayers, homeowners in pre-foreclosure, and absentee owners. Once you have created target lists, design your marketing campaign. A great tip is to try and join wholesaling and other real estate investment groups. I recommend searching Facebook for groups to join or asking around your existing network for leads. There are even real estate investing websites you can search for to find leads.
Finally, as important as digital leads are, there is still something to be said for direct mail. Over time, direct mail has been proven to be one of the most successful marketing strategies for motivated sellers. The key is to be consistent with your mailers; most investors will not see success until the fourth or fifth mailer.
[ If you want to learn more about the best way to contact motivated sellers, check out this script. ]
Get A Property Under Contract
When you successfully acquire a motivated seller, agree on the correct price and terms for the property at hand. Approach them carefully to negotiate a contract, and remember to highlight how you are simplifying the selling process for them. A good approach is to highlight the areas of the deal you are taking over, thus easing the burden of property ownership. Ensure you are on the same page as you finalize the negotiations and include all information in the agreement. It can help educate yourself on the legal process of a real estate transaction at this time. Some investors will even consider working with a legal professional to ensure they leave nothing out.
Find Your End Buyer
As soon as you get a property under contract, the real work begins. Your end goal at this stage will be to assign that contract to an interested buyer. If all goes to plan, it will be one from the list you created earlier in the process. Put together a list of comparable properties, estimate the potential cost of repairs, and get a title report done. Then, start reaching out to potential buyers from your list. The more potential buyers you have at this point, the better.
Keep in mind that different types of properties will attract different types of buyers. Properties requiring significant restoration may attract rehabbers, while homes in need of a few minor repairs may be suitable for a rental property investor. Familiarize yourself with different real estate exit strategies to better understand what type of buyer your deal will warrant. Remember this as you advertise your property, leverage your network, and market the deal.
Assign The Contract
Once you’ve identified the end buyer, create an assignment of contract agreement. Be sure to agree upon your assignment fee and deposit amount, and include this information in your final agreement. While the contracting stage may sound complicated, it is actually relatively easy to navigate. Your final contract should state that you are assigning the contract for X amount of money. In doing so, you will make sure all parties are on the same page (and that you are paid accordingly).
Close The Deal & Cash Your Check
On the day of closing, make sure your end buyer is present so they can sign the appropriate documents. They should arrive with the correct forms and payment to purchase the property, including your assignment fee. Once the title company accepts the payment, they will cut you a check for your fee amount. Finally, if you plan on completing more wholesale deals in the future, consider asking for a testimonial for your portfolio. Congratulations, you just completed a step-by-step guide to wholesaling real estate.
Bonus: Building A Backup Plan
Having a backup plan will pay off. Wholesaling is considered relatively low-risk, but something could go wrong between finding a seller and entering a contract. Possible backup plans include purchasing the property yourself and rehabbing it so that you can later flip it or rent it out. This requires that you have the financial means and willingness to buy a wholesale property in case anything goes awry. Having this option will give you the peace of mind and confidence to execute deals.All the best!
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