How do you wholesale when you have no money, how does it work?....does it work lool?

Question

I barely get $300 from my job bi-weekly and every-time I do get paid most of it goes to re-supply or paying bills. Thankfully I have 1yr. rent saved up but my 2 bills take up most of my check leaving me with waiting another two weeks. I live as low as I can below my means and it always seems like my expenses is right under my paycheck lool. I came across a couple of homes close by me for sale but there protected by a Realtor, also I have no car or bike to get around (it's the bus all the way). Ok lets stop sounding to poor here lool. I've come across a couple of people on here that I would like to learn from, my plan or Idea is to own a home based business that part of invest in real estate, such as renting out a place to generate cash flow and also having some stock in REIT and other business as DRIPS, there's more to it but I'll be brief for now. Seeing though that there are so many laws webbed around investing and wholesaling i'm wondering how can I even start lool. i'm information overloaded and wanted to know how can you wholesale a property with no money down (since I don't have any lool). Also do I need to be a licensed Realtor and or broker to do this, I want to be an investor..............oops! let me correct myself I'm a new Investor and read that wholesaling is like doing what a broker does and it's illegal in Texas if not licensed. So how can it work?

Charles Morgan · Answer

Check with a couple of realtors near your area and offer to make coffee, clean, run errands to learn more about real estate.

Check with workforce commission to see if there is financial aid for RE training/classes available.

Jivonna B. · Answer

@Octavia T. Davis sometimes you may need money down with that contract and sometimes you may not. It depends on who the seller is. For the option, give them a dollar. A mentor of mine told me he made a copy of a dollar and gave it to the owner. Don't let anything stop you. If they tell you no, fine, its just getting closer to a yes. See if you can work with other wholesalers in your area as well to team up on some of their deals. Don't over think it too much. Just jump in, plan, but remember you can't plan for everything. Remember that the worst thing that someone can tell you is no, and you have to be ready to take a no to get to your yes.

James Sinclair · Answer

I have never heard of "bird dogging" being illegal, it is just a service. I have looked at a lot of aspects of real estate investing and almost all of them require money. What you have is some time, a desire to learn, and a willingness to work. That puts you in a position to be of value to someone with more experience and access to money.

Jason was "spot on" when he suggested getting out to REIA meeting and getting to know people. The value in real estate investing is in finding the deal. You have to learn what a deal really is and if you find one who wants that type of deal. When you have learned those two areas what you know has real value.

Account Closed · Answer

Thanks Jason but I've heard that bird-dogging in Texas is illegal and after finding out that putting a house under contract separates the difference between bird-dogging and wholesaling. I thought of just putting a option to purchase agreement on a property and then assign it to a end buyer for a assignment fee (but wait..........I need money down in order to do the option to purchase don't I ?).....dang it loool, I think bird dogging might be my only option then...unless you know some other way. I don't want to mess with loans or the bank for help, don't have any credit anyway if I tried. loool

Jason Fraser · Answer

Here's a few ideas that may help you get on the way to wholesaling

Keep in mind, there is a cost to do wholesaling, mostly marketing cost. The good news is there is multiple ways to market at variable costs.

Networking (technically free) but you want to have business cards to hand out (vista print 250 for $10 plus shipping).

Is there a local REIA that is accessible by bus? If so, attend! Identify who buys what and where and at how much. Build relationships. If there isn't a REIA meeting that is accessible by bus, is there a family member, friend, co worker who would be willing to give you a ride to a meeting once a month (maybe they may learn something as well). Or you can barter, if you take me to the real estate meeting once a month, I'll baby sit your child for 2 hours for free once a month...whatever is applicable.

Once you have found who the key buyers are and have built the relationship ar , why not offer to bird dog first and build up the reserves you need to get your wholesaling off the ground. Plus if your bringing leads that turn into deals for an experienced investor who you have a relationship with, they can mentor you along the way. They're making money and you're getting an education that will help you make money.

If transportation is an issue, if you have a phone with unlimited minutes, you can always call for rents and for sale by owner ads on Craigslist, other online classifieds, local newspaper, penny saver etc. You just call and see if they are interested in selling. If they say yes, gather the key information and pass the info to the investor you have a relationship with. If they close the deal, you get a bird dog fee (usually $500). Do this 4 -5 times and you have $2000 - $2500 and more education to market and start putting deals under contract for bigger profits.

Hope this helps.

PS I purposely said "investor who you have a relationship with" several times on purpose. If ism going to pass over a lead to someone else, I at least want to make sure its to someone who i trust will keep their word and pay me a fee when they get paid from the deal.

Renee Stewart · Answer

@Octavia T. Davis ,

Check out the BP beginner's guide and the wholesaling podcasts under the learn tab. It's great information for a newbie and will point you in the right direction. Also, continue to network with folks in your area, set up forum alerts for your area and attend as many local REIA meetings as you can.

Happy Investing!

Renee

How do you wholesale when you have no money, how does it work?....does it work lool?

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