Hey everyone, I'm brand new at this, and I wanted to ask a question.
I think wholesaling is the best way for me to start my career in real estate. I found a mortgage broker in Manhattan beach, and I want to sit down with him for about 20 minutes. My goal from this meeting is to connect with a real estate investor, and I think it's likely he would know a few.
The thing is, I don't really know what to say or how to go about that meeting. I have a few key ideas for an intelligent conversation, but I could use a few pointers to iron things out.
1. I'll have something to offer. I am good at copy editing, so if he needs a business letter or proposal cleaned, I'll do that for free in exchange for a meeting.
2. State my intentions. Tell him I'm interested in wholesaling, and I'm looking for investors to connect with.
I think my sticking point is getting this man to care about helping me, and I was wondering if any of you could give me a few tips. Perhaps I'm going to the wrong person for an initial meeting?
Welcome to BP from a fellow Angeleno investor.
It is likely that your mortgage broker may have some contacts that will be of use for you, but I wouldn't look for the meeting to solve all of your investor needs. He/she may not even understand wholesaling enough to give you any meaningful information in that regard.
If I were you, I'd meet with him with the goal of getting three other investor contacts that you can in turn setup follow-up meetings with. Keep the conversation high-level and think of ways that you can provide value to him. Ask questions about any special financing deals or investor-friendly financing he might be able to educate you about.
Are you planning on wholesaling in Los Angeles or in other areas? I strongly suggest you attend some real estate investing meetups so that you can talk to other investors, lenders and wholesalers. L.A. is a tough market to start in, but it can be done to anyone with enough cash, perseverance, and willingness to succeed.
Thank you very much Joshua, I really appreciate it.
Should I simply ask, "Do you know of any special financing deals?" And if he does, what answers could I expect from him? What kind of special financing deals are there? Could he perhaps have first-hand knowledge of houses just put up for sale?
Brandon, I think you have the play the numbers game here. Talk to as many people as will sit down with you. Talk to anyone. Talk to everyone. Talk to people in person, talk to people over the phone, talk to people here on BP. In doing this, you will figure out the right questions to ask and you will also better know what to look for. Don't feel the need to "know everything" before you start doing anything. This is one thing that keeps most people on the sidelines.
On this front, I'll offer this piece of advice... When you talk to someone, ask about their expertise. Ask about their business, not just what you want answered. People who are truly passionate about what they do love to talk about their business. Often times you'll glean much more from them than what you thought you wanted to learn from them.
IMO though it's probably more important to get a mentor who can teach you about how to wholesale than to have a ready buyer's list. Remember if you have a truly good deal, they will come, even if your buyers list consists of posting on craigslist or in the BP marketplace or even unsolicited direct mail.
You're right, Wes. I don't need to know everything right now, and I shouldn't stress out too much on this potential meeting. I haven't even made the call yet!
After that meeting, I'll post a field report on this thread. Of course if anyone has any other slices of advice, I'd love to hear it. And thank you all for your help.
@Brandon Snyder Brandon, try listening to Michael Quarles' BP interviews & his own podcast at Buy Sell Fix Flip for some ideas on how to find that 'needle in the Los Angeles haystack.'
@Joshua McGinnis & @Wes Shive Just as Mike Quarles has pointed out, practice your 'elevator talk,' when you meet & talk to people. How do you strike up a conversation letting people know you're an investor in just a few seconds. Joshua knows, I've got an associate in my W2 job that approached me for commercial properties, the only thing I knew was Joshua knew about commercial. So, since I talked to Joshua previously, I gave my co-worker his contact info.
It's not having the actual deal or property that you might have on-hand at the time, it's mostly information or network that you already have. Team up with other investors in searching for deals. I can vaguely remember whether it was Sharon Vornholt or Karen Rittenhouse that mentioned in their BP interview (show# 2 or #12) how having a network helps a lot.
In LA, loan brokers are not who you want to talk to. Any LA fix and flip deals are done cash or with hard money. The hard money guys know the flippers who buy fix and flip deals. So, make a network of hard money guys.
Then, when you have a deal, send it to them. They will be very happy to send it to the flippers they know because 1. The flippers will appreciate seeing an interesting deal, and 2. The hard money guy will get to do the loan if his flipper decides to do the deal.
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