Newbie Wholesaler - NYC, New York

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Newbie Wholesaler - NYC, New York

Monique Booker
New York City, NY · Member since 2019 · 5 posts · 1 vote

Hello everyone,

Since February, I've been reading and watching a ton about wholesaling, and last month I decided to take the leap. I feel like I understand the basics, but I don't want to get "analysis paralysis"- so I've been out there W4$ (walking for dollars lol), dropping off letters to specific address I've had on my list, and other places I've seen along the way.

Keep in mind that haven't pulled lists from Listsource or REIpro. Basically I was looking at the Lis Pendens maps for NYC on Propertyshark.com, as well as the tax lien list on the NYC gov website. I would look up the addresses on Google maps, the county gis, and Zillow to decide if I want to drop off a letter and call them.

I've cold called only 3 people so far... 2 of them I spoke to:

1. Said im #40 on his list and that the highest offer on his property is 1.4 Million.

2. He is one of my tax clients. During our session, he told me that he wants to pack up and run and go back to Panama, but when i followed up with him about when he'd like to sell/move, he doesn't seem so eager. He also seems confident his property is worth 1.45 Million but I don't think so.

And I know- calling only 3 people in a month is pathetic and I need to call way more people.

The other day I ordered business cards and bandit stickers. I don't know if it would be worth it post the stickers in NYC.

I honestly feel overwhelmed, and I don't think NYC is the right market for me- hence why I feel like I need to check out Connecticut and New Jersey.

I don't have a car, and I feel like my current work schedule makes it hard me to get out there to these areas.

I am also overwhelmed with the various areas to focus on, and types leads (probate, lis pendens, vacant, divorce, tax lien, tax deed, water bill, etc).

•Is Wholesaling in NYC a waste of time? What about Long Island?

•Should I focus on 1 specific county in one specific state?

•Should I also focus on just one type of list?

•Where should I start? Should I just focus on analyzing potential deals first? Help!

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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
7y
Originally posted by @Monique Booker:

Hello everyone,

Since February, I've been reading and watching a ton about wholesaling, and last month I decided to take the leap. I feel like I understand the basics, but I don't want to get "analysis paralysis"- so I've been out there W4$ (walking for dollars lol), dropping off letters to specific address I've had on my list, and other places I've seen along the way.

Keep in mind that haven't pulled lists from Listsource or REIpro. Basically I was looking at the Lis Pendens maps for NYC on Propertyshark.com, as well as the tax lien list on the NYC gov website. I would look up the addresses on Google maps, the county gis, and Zillow to decide if I want to drop off a letter and call them.

I've cold called only 3 people so far... 2 of them I spoke to:

1. Said im #40 on his list and that the highest offer on his property is 1.4 Million.

2. He is one of my tax clients. During our session, he told me that he wants to pack up and run and go back to Panama, but when i followed up with him about when he'd like to sell/move, he doesn't seem so eager. He also seems confident his property is worth 1.45 Million but I don't think so.

And I know- calling only 3 people in a month is pathetic and I need to call way more people.

The other day I ordered business cards and bandit stickers. I don't know if it would be worth it post the stickers in NYC.

I honestly feel overwhelmed, and I don't think NYC is the right market for me- hence why I feel like I need to check out Connecticut and New Jersey.

I don't have a car, and I feel like my current work schedule makes it hard me to get out there to these areas.

I am also overwhelmed with the various areas to focus on, and types leads (probate, lis pendens, vacant, divorce, tax lien, tax deed, water bill, etc).

•Is Wholesaling in NYC a waste of time? What about Long Island?

•Should I focus on 1 specific county in one specific state?

•Should I also focus on just one type of list?

•Where should I start? Should I just focus on analyzing potential deals first? Help!

If you don't have $1.4M you've got no business engaging with the owners of these properties. Wholesaling as it's taught is a myth. You need a license to Broker real estate. That's all wholesaling is, it's brokering real estate except instead of being up front & telling the distressed seller that you'll sell their property for X amount & take X amount as your commission / fee you are taught to lie to the seller & pretend you are going to buy the property while you secretly attempt to "assign" your contract.

It doesn't work. Nobody has any respect for wholesalers. Whenever a wholesaler contact me I simply get the information about the property & reach out to the owner myself cutting the wholesaler out of the deal entirely. If you do business above board as a licensed agent that won't happen to you. The only people making money wholesaling are the guys selling the education.

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  • George Blower
    Retirement Accounts Attorney · Southfield, MI · Member since 2017 · 3k+ posts · 1k+ votes
    7y

    @Monique Booker

    Welcome to Bigger Pockets.

    0Reply
  • Zackarias Aitchison
    Member since 2019 · 44 posts · 20 votes
    7y

    Hey @Monique Booker I am a wholesaler from St Catharines, Canada and I was in your shoes a few months ago. So I'll lend you my two cents.

    1. I do not know the NYC Market so I cannot tell you if it is a good place to start or not. I found that starting in a county that has lower value homes that are surrounded by counties of higher value homes is a good place to start. I found people in areas like this are more experienced with investors and open to the ideas 

    2. Real estate is a HUGE area of study. I would pick one county so you can learn that county's market as you learn the in's and out's of real estate. For me learning the basics and eventually, the advanced stuff in real estate was made a lot easier by staying in one area where I could apply all the new skills I was learning.

    3. In Canada, we have really strict anti-spam laws so I do not have access to that many lists. To avoid being overwhelmed I would start with two different methods of finding houses and base the lists and methods you use to find these houses off of your buyer lists. For example, I look for 2 types of properties; teardowns and turnkey properties. I target these because I have lots of interested buyers for these types of properties. No matter how many amazing deals I have they mean nothing if I don't have a buyer to pick them up.

    Buyer specifies what they are looking for -> What lists are those properties usually on? -> Study and learn those lists -> repeat once comfortable 

    4. Analyzing deals properly, in my opinion, is the most important skill for wholesaling, tied with marketing. If you cannot analyze what is a good deal and what is a bad deal you'll look like a chump when you send it over to your buyers. If you want tips on how to analyze and appraise different types of properties let me know and I can help!

    1Reply
  • Monique Booker
    OP
    New York City, NY · Member since 2019 · 5 posts · 1 vote
    7y

    @George Blower Thank you!

    1Reply
  • Monique Booker
    OP
    New York City, NY · Member since 2019 · 5 posts · 1 vote
    7y

    @Zackarias Aitchison

    Thank you! I will look into tear downs and turn key properties.

    With targeting specific counties that have lower priced homes but are surrounded by high value areas- I feel like I need to target specific zip codes or neighborhoods in NYC. Kings county is HUGE.

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    7y
    Originally posted by @Monique Booker:

    Hello everyone,

    Since February, I've been reading and watching a ton about wholesaling, and last month I decided to take the leap. I feel like I understand the basics, but I don't want to get "analysis paralysis"- so I've been out there W4$ (walking for dollars lol), dropping off letters to specific address I've had on my list, and other places I've seen along the way.

    Keep in mind that haven't pulled lists from Listsource or REIpro. Basically I was looking at the Lis Pendens maps for NYC on Propertyshark.com, as well as the tax lien list on the NYC gov website. I would look up the addresses on Google maps, the county gis, and Zillow to decide if I want to drop off a letter and call them.

    I've cold called only 3 people so far... 2 of them I spoke to:

    1. Said im #40 on his list and that the highest offer on his property is 1.4 Million.

    2. He is one of my tax clients. During our session, he told me that he wants to pack up and run and go back to Panama, but when i followed up with him about when he'd like to sell/move, he doesn't seem so eager. He also seems confident his property is worth 1.45 Million but I don't think so.

    And I know- calling only 3 people in a month is pathetic and I need to call way more people.

    The other day I ordered business cards and bandit stickers. I don't know if it would be worth it post the stickers in NYC.

    I honestly feel overwhelmed, and I don't think NYC is the right market for me- hence why I feel like I need to check out Connecticut and New Jersey.

    I don't have a car, and I feel like my current work schedule makes it hard me to get out there to these areas.

    I am also overwhelmed with the various areas to focus on, and types leads (probate, lis pendens, vacant, divorce, tax lien, tax deed, water bill, etc).

    •Is Wholesaling in NYC a waste of time? What about Long Island?

    •Should I focus on 1 specific county in one specific state?

    •Should I also focus on just one type of list?

    •Where should I start? Should I just focus on analyzing potential deals first? Help!

    If you don't have $1.4M you've got no business engaging with the owners of these properties. Wholesaling as it's taught is a myth. You need a license to Broker real estate. That's all wholesaling is, it's brokering real estate except instead of being up front & telling the distressed seller that you'll sell their property for X amount & take X amount as your commission / fee you are taught to lie to the seller & pretend you are going to buy the property while you secretly attempt to "assign" your contract.

    It doesn't work. Nobody has any respect for wholesalers. Whenever a wholesaler contact me I simply get the information about the property & reach out to the owner myself cutting the wholesaler out of the deal entirely. If you do business above board as a licensed agent that won't happen to you. The only people making money wholesaling are the guys selling the education.

    2Reply
  • Monique Booker
    OP
    New York City, NY · Member since 2019 · 5 posts · 1 vote
    7y

    @James Wise

    Thanks for your reply. The first guy I mentioned who is being offered 1.4 Mil. The home and the land it is sitting on aren't worth that much. Developers are offering him that much to be able to tear it down and build a new building. Check out the property yourself: 5417 2nd ave, Brooklyn NY.

    I know that there are negative options about wholesaling, and that there are legal arguments for or against it. And I don't believe that only gurus selling products are making money wholesaling.

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    7y
    Originally posted by @Monique Booker:

    @James Wise

    Thanks for your reply. The first guy I mentioned who is being offered 1.4 Mil. The home and the land it is sitting on aren't worth that much. Developers are offering him that much to be able to tear it down and build a new building. Check out the property yourself: 5417 2nd ave, Brooklyn NY.

    I know that there are negative options about wholesaling, and that there are legal arguments for or against it. And I don't believe that only gurus selling products are making money wholesaling.

     Well you've got some misconceptions in your thinking.

    • There aren't legal arguments for or against brokering without a license. There are state laws & there are those who are willingly & unwillingly breaking them. It's really a very black & white discussion. Those who think it's gray are just confused, ignorant or uninformed.
    • As for what the property is worth if the developers are offering him that much then it is in fact worth that much. What more accurate way to determine something's worth than the amount that someone is willing to pay for it?
    0Reply
  • Monique Booker
    OP
    New York City, NY · Member since 2019 · 5 posts · 1 vote
    7y

    @James Wise

    Sounds like there's a whole lot wholesaling in your market and you feel that wholesalers are stealing good deals from you.

    Thanks for your 2 cents though!

    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    7y
    Originally posted by @Monique Booker:

    @James Wise

    Sounds like there's a whole lot wholesaling in your market and you feel that wholesalers are stealing good deals from you.

    Thanks for your 2 cents though!

     .........As they say, you can lead a horse to water, can't make um drink tho.

    0Reply
  • Caleb Heimsoth
    Rental Property Investor · Durham, NC · Member since 2016 · 7k+ posts · 7k+ votes
    7y

    @Monique Booker I agree with @james wise. This is a waste of time for you. The chances you get this deal or another deal by wholesaling or cold calling people is so slim, you definitely don’t want me to take a shot at how small your chances are.

    Wholesaling is not easy. It’s actually very difficult. You need to be good at every aspect of real estate (contracts, deal analysis, rehabbing, etc). And most try to do this with no money.

    0Reply
  • Holly Williams
    Rental Property Investor · New York City · Member since 2014 · 208 posts · 271 votes
    7y

    So I’m a multifamily owner in Brooklyn. I don’t answer my home phone, even look at the postcards and letters that I get weekly from people wanting to buy my house, nor do I answer the door...I can spot them immediately and know what they want. Who knows? You may be able to do it, but you are competing with many people who have a ton more experience. I wouldn’t touch NYC right now. Just my opinion. I may be very wrong, but I’ve lived in Manhattan and Brooklyn for 30 years. It’s inflated to say the least.

    0Reply
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