Hello BP peers. I am new to the RealEstate market and I am looking for the best ways to attract motivated sellers with spending as least money that I can? it seems to be a challenge for me to locate off market properties. As a wholsaler, these are important i see. What would be a great strategy to get me going?
Read the wholesaling forums and you will get a ton of ideas. Here are a few:
1. Craigslit ad - Free
2. Bandit Signs (if legal in your area) <$100 for enough to get the phone to ring
3. Connect with an agent, and make offers on MLS properties
4. Tell everyone you know/meet that you are looking to buy properties and be specific to an area, or type of house - you never know someone who knows someone...
Lots of other options, the key is to focus on one or two things, read a lot about them, and then start executing - don't overstudy the path - you will learn as you go. Good luck
@Dave Savage Very good advice!
I ask this all the time of the new investors. The problem I find is that they are only looking at the low barrier to entry. They've been told you can invest with no cash and no credit by flipping purchase contracts. What they were not told is that wholesaling is not easy. It can be remarkably discouraging. It usually requires the broadest knowledge of RE investing strategies and strong marketing skills.
There are always exceptions. Some people just take to it naturally and do very well. Perhaps that's you. If so, read no further. You'd do quite well with the suggestions Dave offered.
However, if your investment objective includes something more than just trying to make a quick buck, I recommend you consider wholesaling as a backup strategy. Let's say you figure the big bucks are in rehabbing, but you haven't got the money in the bank that business requires. No prob. You go out find a great looking deal, calculate you discount of ARV (After Repair Value) and subtract repair costs then reduce your offering by a little more to cover your assignment fee and submit your offer. The only problem, another rehabber saw this deal and offered the same amount you did plus the amount of your assignment fee. His offer got accepted because he could offer a little bit more.
I could go on with the scenarios, but the point is this, what if you could structure the deal to use Other People's Money (OPM), instead? Consider, same house, seller has 50% equity in the property and you now this because you skilled asked him. You find he will "carry-back" and you purchase the property "subject to". You offer top dollar and close with no money out of your pocket. Easier said than done, but at least now you're competing in the marketplace.
OK, so there's a lot more to it than what fits in this tiny post. I just want to face you (and hopefully others) in another direction. If you have any questions, send me a colleague request. I love to help the new folks. It makes me feel like a guru.
BTW, since I started writing this post,@Will Barnard posted in the Wholesaling forum. Check out his post,
Very much the what I'm talking about from another angle. The man's a genius and well worth taking the time to listen to.
All the best.
Thanks. @Tom Mole, I want to wholesale because i figure that is where a begginner should start. Yes, i want to do other things. I have been preparing myself for any situation in Real Estate. I want to learn the different aves. THank everyone for the advice.
I think the idea that a beginner should start by wholesaling is a myth spread by gurus who sell expensive wholesaling courses, boot camps and mentorships. Wholesaling is a VERY difficult commission sales JOB. Exactly the sort of thing gurus talk down with phrases like J.O.B. - just over broker. It takes a lot of skill to correctly determine values and repair costs. Without accurate numbers you have no way to figure out what to pay. Wholesaling takes a lot of time and effort and no small amount of money and you may still never do a deal.
If you can get good at it, wholesaling can make you some money. Its absolutely not the low effort road to quick and easy riches the gurus make it out to be.
And it may not be the right job for you. Its often held out as a way to "build capital". Which is a fancy way of saying "make money". You may have other skills and likes that could be better directed to some other way to make money, which you could then use to invest in real estate.
@Brittany Thompson @Tom Mole Hmm very interesting, I was also thinking I needed to start out with wholesaling in order to "build capital" due to lack of funds. I've done a couple wholesale deals but they kind of fell in my lap (I knew a buyer ahead of time) and did not have to market (word of mouth). I assumed since I did it before that this is the way I should go to get back in the RE game. Thanks for that post @Tom Mole you've got me thinking wholesaling isn't the only way!
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