First Steps in Wholesaling and Flipping
Member since 2024 · 8 posts · 0 votes
First Steps in Wholesaling and Flipping
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Joel BongcoBusiness Member
Investor · Honolulu HI & Los Angeles, CA · Member since 2018 · 369 posts · 176 votesAloha Arman, I recommend to most people to crawl, walk, run, sprint, they fly. Start with crawling first which is to get really good at connecting with homeowners. I would not get too caught up in creating an LLC - do that we you actually have a steady pipeline of business. Come up with a plan - I recommend that you start in your own backyard first and get some practice with some local homeowners who are in distress or want to sell. Most newbies should work on this first before getting into all the technical details of wholesaling or flipping. I've got team members in Tampa if you need local support. HTHS! Joel
9 Replies
- 2yJoel BongcoBusiness MemberInvestor · Honolulu HI & Los Angeles, CA · Member since 2018 · 369 posts · 176 votes
Aloha Arman, I recommend to most people to crawl, walk, run, sprint, they fly. Start with crawling first which is to get really good at connecting with homeowners. I would not get too caught up in creating an LLC - do that we you actually have a steady pipeline of business. Come up with a plan - I recommend that you start in your own backyard first and get some practice with some local homeowners who are in distress or want to sell. Most newbies should work on this first before getting into all the technical details of wholesaling or flipping. I've got team members in Tampa if you need local support. HTHS! Joel
- 2yTyler GibsonBusiness MemberReal Estate Agent · Orlando, FL · Member since 2017 · 1k+ posts · 2k+ votes
Quote from @Arman Tannu:
Hi everyone, I am am based in Orlando, FL and am very new to REI. I want to begin with wholesaling, potentially move to flips but my ultimate goal is to BRRR. I absorb information very fast and have gone through a good chunk of course work and books in just a short time.
I am ready to start looking for deals. But my question is, should I make a website and LLC before pursuing deals? Should I create a buyer's list first? Should I invest in software for finding deals from the jump or bootstrap it? Essentially, what have you all done before beginning to find deals? Or was that the very first step?
I have discovered in the past few years the most valuable skill is the ability to find a deal. Get really good at finding deals and everything else will fall into place. No need to worry about setting up an LLC or anything like that right away as that can be done fairly easily. Once you have a deal. You'll always be able to find a buyer for a great deal.
- Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes2y
Quote from @Arman Tannu:
Hi everyone, I am am based in Orlando, FL and am very new to REI. I want to begin with wholesaling, potentially move to flips but my ultimate goal is to BRRR. I absorb information very fast and have gone through a good chunk of course work and books in just a short time.
I am ready to start looking for deals. But my question is, should I make a website and LLC before pursuing deals? Should I create a buyer's list first? Should I invest in software for finding deals from the jump or bootstrap it? Essentially, what have you all done before beginning to find deals? Or was that the very first step?
Here is an idea, FIND A DEAL, flip it to an investor. DO ONE, then another and another. NOW start " getting organized " So many do things backwards. Selling them is easy IF it's a good deal. crawl, walk then RUN!!!
BTW, do you know how to determine, ARV, and reno costs? If not do not even bother looking yet. RE is ALL about math, that's it! If you do not know the numbers, how are you going to make an offer? Throw all the books away and stop taking guru courses. Get to your local RE meeting, you will learn more in two days then months and months of reading books that are not reality.
All the best
- 2yShawn McCormickPro MemberRealtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 892 votes
@Arman Tannu Welcome to the world of REI. Your path is similar to many just starting out and I always ask why? What is appealing about wholesaling to you..is it something you've read that it 'takes no money' or you make money fast? The same for flips, the learning curve is steep and a simple mistake can set you back or take you out of the game altogether. I know very seasoned flippers miscalculate or get cocky because they've done a ton of deals and wind up losing tons of money.
I would figure out what you are good at, have a passion for and gets you to your ultimate goal (financial freedom, generational wealth, quitting your W2 etc) and work towards that sooner than later.
A good place to start in Orlando would be networking with other investors that are local. Come out to a CFRI meeting (Central Florida Realty Investors), the local chapter of the National REIA. You will gain great relationships and knowledge quickly.
A website, LLC, business cards etc are all not needed to get started. Of course they are helpful depending on how you want to grow and which avenue you take, but finding the deal is the key to everything. The numbers have to make sense. Practice on evaluating properties, making offers and comping properties. It is absolutely true that if you have a good deal, a buyer is easy to find.
Best of luck.
- Member since 2024 · 8 posts · 0 votes2y
Quote from @Bob S.:
Quote from @Arman Tannu:
Hi everyone, I am am based in Orlando, FL and am very new to REI. I want to begin with wholesaling, potentially move to flips but my ultimate goal is to BRRR. I absorb information very fast and have gone through a good chunk of course work and books in just a short time.
I am ready to start looking for deals. But my question is, should I make a website and LLC before pursuing deals? Should I create a buyer's list first? Should I invest in software for finding deals from the jump or bootstrap it? Essentially, what have you all done before beginning to find deals? Or was that the very first step?
Here is an idea, FIND A DEAL, flip it to an investor. DO ONE, then another and another. NOW start " getting organized " So many do things backwards. Selling them is easy IF it's a good deal. crawl, walk then RUN!!!
BTW, do you know how to determine, ARV, and reno costs? If not do not even bother looking yet. RE is ALL about math, that's it! If you do not know the numbers, how are you going to make an offer? Throw all the books away and stop taking guru courses. Get to your local RE meeting, you will learn more in two days then months and months of reading books that are not reality.
All the best
Thank you Bob! I have learned to calculate ARV, and reno costs roughly, although the latter I feel a bit uneasy about. Trying to find good meetups as well, but oddly not seeing much in Orlando. I'll take that advice and just focus on the deal.
- Member since 2024 · 8 posts · 0 votes2y
Quote from @Shawn McCormick:
@Arman Tannu Welcome to the world of REI. Your path is similar to many just starting out and I always ask why? What is appealing about wholesaling to you..is it something you've read that it 'takes no money' or you make money fast? The same for flips, the learning curve is steep and a simple mistake can set you back or take you out of the game altogether. I know very seasoned flippers miscalculate or get cocky because they've done a ton of deals and wind up losing tons of money.
I would figure out what you are good at, have a passion for and gets you to your ultimate goal (financial freedom, generational wealth, quitting your W2 etc) and work towards that sooner than later.
A good place to start in Orlando would be networking with other investors that are local. Come out to a CFRI meeting (Central Florida Realty Investors), the local chapter of the National REIA. You will gain great relationships and knowledge quickly.
A website, LLC, business cards etc are all not needed to get started. Of course they are helpful depending on how you want to grow and which avenue you take, but finding the deal is the key to everything. The numbers have to make sense. Practice on evaluating properties, making offers and comping properties. It is absolutely true that if you have a good deal, a buyer is easy to find.
Best of luck.
Thank you, Shawn! I have been having difficulty finding a meetup to go to so I am glad you mentioned it. Wholesaling and flipping grabbed my attention first as I do not have much money saved up to invest myself. Just finished a master's degree while working full time and came to a realization that more school (med school) would just mean more debt and more hours working for someone else. I've pulled all nighters to study for school and worked overtime at my job at the same time, and it mad me no money. So, I felt if I'm going to put in the work, it might as well be for the benefit of myself and the people I love.
- Member since 2024 · 8 posts · 0 votes2y
Quote from @Tyler Gibson:
Quote from @Arman Tannu:
Hi everyone, I am am based in Orlando, FL and am very new to REI. I want to begin with wholesaling, potentially move to flips but my ultimate goal is to BRRR. I absorb information very fast and have gone through a good chunk of course work and books in just a short time.
I am ready to start looking for deals. But my question is, should I make a website and LLC before pursuing deals? Should I create a buyer's list first? Should I invest in software for finding deals from the jump or bootstrap it? Essentially, what have you all done before beginning to find deals? Or was that the very first step?
I have discovered in the past few years the most valuable skill is the ability to find a deal. Get really good at finding deals and everything else will fall into place. No need to worry about setting up an LLC or anything like that right away as that can be done fairly easily. Once you have a deal. You'll always be able to find a buyer for a great deal.
Thank you for the solid advice, Tyler. It sound like everyone is saying the same thing. The deal is key!
- Investor · Tampa, FL · Member since 2020 · 287 posts · 152 votes2y
Arman, deals are the most important piece. All the other stuff is irrelevant unless you find a deal. Find a distressed category of real estate to pursue and reach out to those sellers to see who wants to sell, then get it under contract. Once you start to make this a pattern, scale your business and start to brand.
- Member since 2024 · 8 posts · 0 votes2y
Quote from @Joseph Stern:
Arman, deals are the most important piece. All the other stuff is irrelevant unless you find a deal. Find a distressed category of real estate to pursue and reach out to those sellers to see who wants to sell, then get it under contract. Once you start to make this a pattern, scale your business and start to brand.
Thank you, Joe! What would you say was the best method for finding deals for you starting out?
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