To get to the point, I want to get into real estate doing wholesaling and flipping homes but I have no money to start. I am currently about to start a 30 day challenge to wholesale a house and with that hopefully find investors. The issue is I am scared as hell. I am 26 years old and I brought my first house almost a year ago and now that I have a foundation, I want to build on that. What are your thoughts on finding buyers and sellers. I have read several books but for some reason I am more nervous now than I was when I brought my first
house. Do I need to call real estate companies and see if I can get a list of cash buyers in my area in the last few months?
FYI: I don't like to fail. I can accept that I stumble but I refuse to give up even if that means steeping outside my comfort zone.
Way to not give into the fear and to face forward!! You ROCK!
The idea of wholesaling a deal is spot on! It let's you find a deal, but lets everyone else take the risk. Tell your emotions to take a chill pill, and they can get all scared again when you decide to actually do the buying yourself. Until then they'll have to sit a few games out! :)
Now that your emotions are taken care of (wouldn't it be nice if it were that easy!) - let's talk about finding buyers. That's actually really easy -- go to investment clubs, find them here on BP, go to foreclosure auctions, and call all the rehabber you can find on Craigslist (they always have "newly remodeled" or "newly renovated" properties for sale. Let them know you are in bird-dogging wholesale mode and wanting to know if they want deals and if so -- what kind of deals.
Don't try to impress them with what you know -- just let them know you are hard working and out to help them grow their business if they'll help you grow yours by taking deals that you work hard to find. You can even admit that your first lead or two may need some work, but that you're a fast learner and if they're patient you'll make it worth their while.
Moving on to the sellers is a bit more challenging as it takes some negotiation skills to find deals. Most deals don't show up in Christmas paper and a bow. You have to get sellers to relax and tell you their problems and then you have to help them see that you have a solution. As a result, they will allow you to make offers WAY below their asking price. It's a hard psychology to learn -- the psychology of getting people to reveal what they will REALLY take for a property vs what was they asked in their listing.
As for finding sellers to practice on -- they are all over. You can knock on foreclosure doors, call Craigslist ads, search the internet, call realtors, get in the paper, send direct mail pieces to probate and out of state owners, etc.
That's a lot of broad information, but I hope it gives you some direction!
To your success!