I am new to REI. I work for KCS Railroad, I have a family and home that I take care of. I am currently trying to wholesale and get some SFR rental properties to create an extra/passive income. I have been at it for a 6 months now and haven't had any success yet. I drive for dollars everyday, I send out 50 yellow letters to absentee owners every week, and I have bandit signs posted around town. I've had a few leads but nothing that I was able to negotiate a great deal on that would make sense for me I'm not sure if I'm doing something wrong or if I'm just not marketing to the right sellers. I keep seeing all of these success stories on BP, YouTube, and other REI groups that I follow. I am kind of getting discouraged but I don't want to give up. I'm basically making this post to get some words of encouragement to keep going and also some tips if anyone would like to share. Thanks.
Hey Marlo. The market is hot right now and it is tough to find deals. I'd recommend the following ideas:
1) If you can't find great deals right now, stockpile as much cash as you can and keep it ready for when the market turns a little south (this is the second longest bull market we have ever had for the stock market, so it will go down and pull housing with it a little).
2) Try different approaches. If you aren't getting success then step back and reevaluate your methods. Maybe you need to focus more on social media marketing in your area (Facebook, Instagram, etc...) or maybe you need to expand your reach and look at other markets slightly outside your area.
3) Maybe try finding someone to partner with who has done a couple deals so you can at least get part of the pie.
In all, this is a tough time to jump into the market but don't lose hope. If you give 100% and still can't seem to muster a deal, don't fret. Stockpiling cash isn't horrible, other than it doesn't hedge against inflation. But in the short term it may be the right option until you can get your first deal. Just keep searching!
The reality is that what you are experiencing is what wholesaling is like. Long hours, hard work and ultimately very few actually make a profit at it.
It is very similar to any real estate investing. Of all that want to start barley 5% are successful. Same applies to wholesales.