I'm relatively new to real estate. I know I want to get into wholesaling to start with. Just wondering what I should do to get started. I'm from northern NJ. Steps I've taken so far is called bandit signs and created a company. Is there any advice on best ways to get started?
-Create 2 websites, one for seller and one for buyers. Create or pay someone from Odesk to create Pay-Per-Click campaigns to drive traffic to the websites.
-Buy a list of absentee owners with equity from listsource then use click2mail to send out postcards to them. Your phone will blow up.
-Go to meetups in your area to network with agents, cash buyers, contractors, wholesalers, etc.
-When you get your first check, reinvest in a bigger mailer and automating your business (hiring an answering service because talking to unmotivated sellers will be the biggest wast of your time.)
-Follow up with all leads, call back, send contracts, etc.
April 4th meet up in Summit. Search "NJ meet up" for full details.
Thanks guys. This is really helpful. I'll see you at the meet up Shawn.
Mind saying why you think wholesaling is the place to start? Can you give some logic to your decision other than gurus, mentors and coaches telling you that it's the place to begin through their marketing efforts?
You can skip that part about not having money, let's assume you have no credit and no job, if you do, might mention that, you'd be an exception if you have all three. :)
Well I'm a recent college grad; put myself through college so I don't have a network with money yet, looking to build that now.Finished my first year as an accountant. Based on my research the criteria to get in wholesaling best fit with me.(Even though I never thought the criteria was as low as you stated). If I had cash then I would probably start as somewhere else. Since I have 2/3, I guess I would still be an exception. I see that you have tons of experience. How would I be able to use that as an advantage? Or do you have a suggestion on where else to start? I'm very quick learner; I'm ready to dive in completely whatever you throw at me :)
Accounting.......Great! You're way ahead.
Actually, you can do retail or wholesaling or buy and hold. None has to take thousands of dollars.
Wholesaling is simply being a straw man, nothing more, but it's not simple, in fact you can have more issues there than selling to mom and pop that will live in a home.
My point is learn RE basics, not strategies, won't take you two weeks to understand how all the strategies fit into the basics of RE, how RE is transferred, title requirements, types of deeds, rights conveyed, how to value a property and examine the market.
Learn RE financing rules, you need to know them to sell otherwise you're always looking for cash buyers.
We say, don't be a one trick pony, wholesaling is one trick. You may have legal issues as well in your area, don't screw up your professional reputation. Know what is required and accepted locally. Good luck :)
Did you see a difference in your website traffic after hiring someone from Odesk? And what website service do you use? WordPress?
Do you pay per listing on listsource, and if so how much?
What is your conversion rate with click2mail or any other marketing tool. Thanks.
We have one website through Wix.com that we still point PPC to, as well as a wordpress site that we use SEO and PPC. Yes we have seen an increase in organic traffic since we started using SEO, it has taken about 3 months but we are finally getting to the top of google, bing and yahoo for search results.
I do not know what we pay per listing on Listource. I bought a couple lists then they set me up with a new account and I get something like 40% off standard price. I just bought a list of $1800 and it cost about $250.
My first mailing was a small yellow letter campaign to absentee owner with equity, my response rate was 12% but no deals. I decided to switch to postcards and at first received a 1-2% response rate, but now because I am on my 4th and 5th mailers to the same group last month I got above 3% response on that list.
We are sending out 5,500 mailer this month, our biggest yet, and I am excited to use our new answering service to field the calls!
Of the 5 deals I've done in 4 months (we took Nov and Dec off due to lack of motivation around the Holiday's.)
Craigslist - 1 deal in lower end neighborhood ($30k-$80k)
Website - 3 deals in higher end neighborhoods ($150k-$250k)
Mailers - 1 deal in Medium neighborhood ($90k-$125k)
So I know this is not a lot to go on, but because we are finding leads in better neighborhoods and higher profit margin from our website, we are really focusing on increase PPC, SEO as well implementing some new techniques to increase traffic and conversion rates.
@John Horner :
That's good information. It's good to see how somebody else is doing and how they are doing it. 5 deals in 4 months seems pretty good. What is the main reason deals with motivated sellers don't happen? Assuming they are motivated. And what answering service do you use? Seems like a good way to remove yourself from the business so you can move on to other aspects of your company.
Also, the biggest question I have when it comes to wholesaling is when you put these homes under contract, do you already have a buyer (reverse wholesaling) or do you contact the cash buyers afterwards? Thanks for sharing your experiences.
I think the sellers idea of a discount is maybe a couple thousand profit. For example a lady we recently met with agreed with us that the ARV of her property was $150k, and the repairs were $20k-$25k, so she wanted $125k for the property... I'm sure you can see the problem here, there is no equity left. She doesn't understand that no investor can offer her that, and why would an owner occupant go through through trouble spending months to fix it up for a break even equity. We have made A LOT of offers in the last 2 months, and I believe that I will soon enough get calls from many of those people when they realize that the market will not withstand those prices.
I am using voicenation. I evaluated and spoke with probably 5 answering services, voicenation seemed to be the most flexible and responsive.
My first 2 were sold to the same investor, after that I partnered with him. He has bought 2 of the last 3 to rehab as well and we wholesaled one to another cash investor. We did not reverse wholesale, we just built our cash buyers list by postcards, craigslist ads and web traffic.
@John Horner :
The sellers idea of a discount is interesting. I guess that makes sense to them at first. I just have to prepare myself for those type of sellers and just let them know to call me back if they change their mind. Thanks for the information.
Learn all you can but you have to take action eventually. I over-educated at first and got the point where I couldn't read another RE book or article, I had to take action.
If you wait until you are sure of something before you take action, you never will:)
The best education is sending out a mailer and talking to sellers first hand!
What voice nation plan are you using? Live answering, and if so how much is it a month? I'm considering signing up myself!
You guys need to start your own tech thread, this is about Bryson's post, let's stay on topic. :)
@Ben G. @Lawrence Walker @John Horner
Bryson, search a bit here about "leverage" I'd suggest you begin learning what the RE financing requirements are and then consider a path that fits with your available money. Also, study seller financing aspects. :)
@Bryson Gunn - What to do next? Continue learning, find good deals, and make some offers.
I can't find the meet up you stated in Summit NJ on
Apr. 4th. Do you have anymore information on it?
Thank you! @Frenchesca Johnson
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