My name is Connor and I'm from Tulsa, OK. I'm new to all this and have been doing the research on "the process", especially for wholesaling. I haven't really been able to figure out, if you're just starting out, should I just look to get a property under contract then market the property, assuming I don't have a buyers list. Or should I try to first create a buyer's list. This is the burning ? that seems to have me nervous pulling the trigger.
Welcome to BP and welcome to the world of real estate investing.
Get deals first. It's hard for buyers to get excited about another newbie that promises to deliver big deals. Good deals always have buyers. You just need to find the deals and introduce them to the buyers.
In addition to being a buy and hold investor that is always looking for good deals, I am a realtor with Keller williams advantage. I would be happy to assist you in locating and evaluating deals...especially since I might end up being your biggest customer.
ABSOLUTELY get your marketing for deals spun up. As you look at deals you will start to see that some are better than others, once you are looking at a few, take the best one to some people in your area and ask them if they might like it? why or why not? If you get a property under contract, dont write a huge deposit check and you cant lose a huge deposit check.
Try to market for deals off the MLS, this way you will be working directly with the seller and you should be able to tie a deal up with as little as ten to one hundred dollars. Hopefully risking such a small amount of money will calm your nerves and allow you to take action. Nothing happens til you take action.
I appreciate it guys.
I agree with @Chris Simmons and @Judah Hoover - limit your downside risk as much as possible while you're starting out. If you can get control of a property for a small amount (either contract earnest money or option deposit) and then look to assign the deal you will reduce your risk and if you have a good deal, you should be able to find a buyer.
You will make mistakes when you're starting out - underestimating the cost of repairs, overestimating market values, etc. If you can limit your downside risk during this "learning phase", you have a better chance of making it through to the "productive phase" where you have the knowledge, connections, and skills to (fairly) consistently make money in real estate. Just remember, every person that has achieved success in real estate started out in the "learning phase".
Best of luck, let us know if we can help!
Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers (cash buyers).
Two Great reads, I bought both J. Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbook
Consider checking out HUD homes for small multi's owner occupied gets first crack.
Couple good reads
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