Want to get started wholesaling

26 Replies

so I've been on the site for a month now and it looks like wholesaling is what I need to do. I want to start getting my ducks in a row, so I'm wondering about how to obtain a contract, do I need to see an attorney before doing this and what's the best way to find buyers when I do. I'm very new to this so type slowly and use small words ;)

Wholesaling can be tough, especially for someone new. What makes you think that is what you need to do? I would never worry about buyers, if it's a deal buyers will find you or you can find one on here!

Happy Investing!

You should be able to use a standard generic purchase and sale agreement, I am sure you can download one from the File Share section on this site. 

There is not a best way to find buyers. There is not an easy answer to this one. 

I would start by attending your closest local real estate investment club meeting.

Good luck!!!

@Terry Hershberger  simply a lack of funds makes me feel like I should wholesale. If you have any other ideas I'm all ears!! 

@Danny Winters like you I'm just getting started and I too am starting wholesaling. In terms of buyers the best place to start is your local REI meeting. I went to my first one last night and I've already got 1 buyer who said he would work with me.

Originally posted by @Danny Winters:

@Terry Hershberger  simply a lack of funds makes me feel like I should wholesale. If you have any other ideas I'm all ears!! 

And that lack of funds is one of many reasons why wholesaling may not be right. Sure, you can get sales through other marketing techniques, but consistent deals come from consistent exposure of potential buyers to your marketing. And direct mail is an important part of getting that exposure. Other methods can contribute, and even strengthen that message. But direct mail costs money, and that is the most effective way to market.

Besides that, what do you know about ARV and how to calculate it? Do you know how to calculate the cost of repairs? Can you spot the many "gotchas" that a flipper will want to know about so that they don't lose money? Do you know the neighborhood you would target intimately, so that you can identify all of the little idiosyncrasies that will effect your potential buyer?

I don't mean to seem too negative, but wholesaling is not the easy answer that everybody paints it to be. Yes, you could become a successful wholesaler. Pretty much anybody can. But it is not just a matter of putting that title behind your name. You could just as easily work hard at any other facet of REI and become good at it, or work a different job to save up money. Because getting to be good at wholesaling will be a lot of work. Don't choose it as a path because it seems like you can do it without money. If you choose it, have it be because that is what you truly want to do, otherwise direct your energies and attention toward a different path.

Originally posted by @Keith Mildren:

@Danny Winters like you I'm just getting started and I too am starting wholesaling. In terms of buyers the best place to start is your local REI meeting. I went to my first one last night and I've already got 1 buyer who said he would work with me.

Buyers are not the hard part. Deals are what matter. If you find real deals (if you learn to even identify one, a shortcoming of many "wholesalers") then you will be able to find buyers. 

@Danny Winters The best advice I can give is to read every book you can about wholesaling as well as rehabbing (considering you should now your buyer needs well). I bought and read every book I could get my hands on at Barnes and Noble when I started. This site is an awesome tool and a wealth of information. Also go to open houses in your farm areas, in the beginning this will give you a hands on view of what houses on the market look like and what they are selling for. You can also speak to realtors to find their opinion of how the market looks from their eyes - also networking, let them know what you're doing and what you're looking for. You can also look at the completed real estate transactions in the weekly paper to see what houses are selling for and who's buying them. Find contractors in your area that have worked for investors in the past (from a REIA meeting) and ask them to come and give you a free estimate on the first houses you go look at - until you feel comfortable with repair estimates on your own. You can also market that contractor with your wholesale deal. Meet some hard money guys and then you can market them with your wholesale deals - make it as easy as possible for your future cash buyer's needs. This is not easy, it takes time to build the correct way, but very achievable, good luck.

@Walt Payne  I appreciate your honesty and yes I do have the money for direct mail marketing, I also have a couple of friends that have been contractors for years to help me out with repair costs. However I didn't want to start sending the direct mail, only to get a call and not know what to do. I am still in the preparation stage and not rushing into anything.

@Bill R.  Thank you very much for all your suggestions, I'm still trying to figure out my target area but I never thought of going to open houses etc... And I love this site and have gotten a lot of info out of it. 

@Danny Winters 

I agree with @Walt Payne  on some of his thoughts.  You don't need to do anything.  What it really boils down to is: 1)What do you want to do (strategy/end goals)? 2)How can you do it with what resources you have (financial/skill set/techniques)? 3) Where do you want to do it?  

The beautiful thing about this business is that there are a million ways to make money.  The unfortunate thing is that there are a million ways to make money.  The fact that you state you need to wholesale is a tell that you're either not bought in to the strategy or it's really not meeting your ultimate goal.  

There are a ton of strategies, once you choose one that fits your wants/needs, that can be accomplished without $$$ from you into an opportunity.  In trade for that, you have to invest the time, gain the knowledge to bring a service/system/opportunity to those with the capital that produce your end goal.  

If it is wholesaling, then study up on it, ask questions and start networking with people that are doing in the area you want to work. One of the best and cheapest methods of creating opportunity is networking with other people and telling them what you do. Attend REIA meetings, talk to RE Agents to find what is selling and at what $$$, attend trustee sales to network with the buyers there to find out what they want. Again, the cost of this is your time and maybe $2-5 for a cup of coffee to have a 30min-1hr conversation with people that are doing it.  Just remember, if you ask someone to sit down with you......you buy!

Danny Winters how's it going. The guys have given some awesome information. You seem like you are motivated and I have a feeling you will do well.

Here are some tips I wish I knew starting out.
-Networking is key. Use Meetup.com and Eventbrite to locate real estate investor networking events. Build up to networking at least 6hrs per week. @John Fedro has a good post about that.

-Market Consistently. Choose a couple marketing strategies and stick to them for at least 6mo. Divide your budget by 6 and spend that amount on marketing each month. A lack of consistent marketing and switching up the marketing too often usually leads to a lack of deals.

-Write your goals down and review them daily. Among many other benefits, this will keep you on track and prevent minor setbacks from being discouraging.

-Get a mentor. Find ways to add value to people that are successful and they will help accelerate your progress.

You are going to do well. Let's hear some success stories soon.

I have been reading and reading and signing up for free videos on wholesaling and house flipping.  I have spent money on going to seminars just for them to want me to purchase into their programs for a price range of $29,000 - $40,000 which I don't have.  I have taken trial memberships to websites that offer video training on how to get started.  I am more than ready to start, I have birddogged a few homes on my own but still am not sure if I have enough solid training to present offers.  I have 1 motivated buyer and 2 motivated renters.  Does overwhelmed fit the term of what I am going through right now.  Yes it does.  I want to move forward, but I don't want to make a fool of myself and destroy my creditability right out the gate.  Any suggestions?

@Danny Winters wholesaling is an excellent place to start with respect to real estate investing. I agree with the others about networking and going to REIA's and such. Some of them, like the one in my city, offer training courses in wholesaling, fix n flip, etc. Direct mail is an important part in your marketing, but not the only one. You do need to know where (what areas) and to whom (absentee, high equity, code violations, probate) you will be sending direct mail to. Find out where the buyers are buying at mostly in your city.. Target those areas. Locate those buyers. Find out what their buy points are. If you find buyers first, you can then target specifically the types of deals they need. Yes, it's easy to find buyers.. So why not start there and find out where they buy at and what their buy points are. That will help you know where and what type (price range, etc) of marketing to send. Yes, if you have a good deal it's easy to find a buyer. But if you have a good buyer, you know what a good deal is the him and so you'll have more targeted marketing.

@Naima Lynah  stay away from courses that cost you $30K to $40K ! Run from them! Ask me how I know!! Don't go to *seminars* - they're all sales pitches for the bigger price tag items. The price you pay for this training is *often* inversely proportional to the value you receive. 

To both of you - listen to the BP podcasts. They're excellent.. especially the ones on wholesaling. Check out your local REIA.. Find a mentor, if you need one. Perhaps there is a local investor or wholesaler who needs help in his/her business.. Like fielding calls from his mailing, visiting properties, whatever. You can earn as you learn if he pays you out of the deals you help him land. I believe this is how @Jerry Puckett started (hint: listen to his BP podcast).

@Naima Lynah  

Just start. Begin. Run forward. jump. Unabashed belief in yourself. 

Tell you what... If you promise me that you will answer the telephone and ask the questions I teach you I will send out 500 Yellow Letters for you....... FREE! No cost.... Gratis... 

My way of helping..

just let me know...... 

I've been listening to the podcasts and they always say get active on the forums...so glad I did,  I appreciate  all of your advice  more than you  know. I'm excited to get moving .

@Walt Payne

What market are you working in where the buyers are just overflowing?  My opinion is that having buyers is most important as you can get a home fairly easily, you could get one or network/partner with another wholesaler who has a property and as long as you have that buyer you can make money.  Simply having deals doesn't mean buyers are lining up, at least not where were at!!!   Again this may be subject to specific markets.

Originally posted by @Curt Davis:

@Walt Payne

What market are you working in where the buyers are just overflowing?  My opinion is that having buyers is most important as you can get a home fairly easily, you could get one or network/partner with another wholesaler who has a property and as long as you have that buyer you can make money.  Simply having deals doesn't mean buyers are lining up, at least not where were at!!!   Again this may be subject to specific markets.

If you have a good deal, it would sell on BP, for one thing. I am not talking about something that you found on MLS like many supposed wholesalers try to market. I am talking an off market buy that has profit in it for everyone involved. Yes, you can get "a home" very easily, but getting a deal is not so easy. That is exactly the thing that many on here criticize about the majority of self proclaimed wholesalers. If you are partnering with another real wholesaler, they should have buyers already.

Know what a deal is, and when you present it to even a small group of investors one of them will find a way to buy it, even if they don't have the money right now. 

Originally posted by @Danny Winters:

@Walt Payne I appreciate your honesty and yes I do have the money for direct mail marketing, I also have a couple of friends that have been contractors for years to help me out with repair costs. However I didn't want to start sending the direct mail, only to get a call and not know what to do. I am still in the preparation stage and not rushing into anything.

Well, now you have an offer from one of the best to help you! Go do it!

@Michael Q. I'll take you up on that offer! If it was made for me as well.

@Michael Q. I'll take that offer too...how many will qualify?  ;)

dont forget to check out and enter to win at buysellfixflip.com

Also the form I spoke about

Hello everyone:

I just joined Bigger Pockets.  I am trying to begin a career as a Real Estate Investor.  Since, I am a beginner, I think I should begin wholesaling.  Does anyone have any ideas how to begin with the first property.  I live in Orange County, CA.  Where is the link "start here" here a Biigger Pockets I saw but can find it again?  Good luck to everyone.  Tina

This post has been removed.

@Tina Mendoza Welcome to BP in the OC!

We have a group of us that gets together every month in Lake Forest.  Let me know if you are interested and I will send you the details.

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