Trying to get started

17 Replies

Hello everyone!!

I live is St. Louis, MO and my partner and I are try to get started in wholesaling and wanted to know what we need to get started? As for where we are well we are right at the start. He can do the heavy lifting and I can work the details. Now we are in need of advice on how to get started and where we should start. 

Much appreciated,

Kahla

@Kahla Henry You must start by finding a great deal that is currently not on the market. A deal so good that after your fee, an investor can still make money on it. You do this by marketing to potential sellers of distressed property, bandit signs, craigslist, FB marketplace, etc. Drive for dogs in good areas. Also, if you can find a good deal on a property that only needs cleaned up, painted, new carpet, etc. Consider doing a light rehab and selling it to a retail buyer. Investors are a small pool of buyers. The large pool of buyers are owner/occupants that are pre-qualified to buy. 

Hi @Kahla Henry

1. Education

2. Take action

A great resource for getting educated is through following other wholesalers and joining wholesale groups on FB.  One person I recommend following is Max Maxwell on FB and his group Wholesaling Houses Elite.  He has grown a ton in the last 2 years but even with that his group and youtube channel have tons of information and contributors. 

When it comes to taking action you have to figure out where your deal flow will come from. An inexpensive approach is through Bandit signs, but you will want to make sure they are allowed in your target market...if not they will likely be taken down quickly which could be a waste of $. Another option is driving for dollars. If you are going to do that I would recommend the Deal Machine app. Another way to get educated and take action would be to attend local REI meetups, they may even have wholesale specific ones in your area..You can network with other investors and likely find you the beginning pieces of your cash buyers list.

Take aways: Get on some wholesaling FB groups/YouTube channels, read the about wholesaling on BP, go to your local meetups, NETWORK, hunt deals, and OFFER.

Good luck!

@Kahla Henry ... definitely think about what kind of processes and systems you need to scale this into a viable business. I would recommend looking into some free, online CRMs to help organize your efforts and ensure you're actually following up with leads. Marketing and lead generation doesn't take you very far if you don't have the follow-up and follow-through.

Originally posted by @Jamiel Strickland :

@Kahla Henry,

Getting leads is where it starts! Door knocking, bandit signs, mail, cold call etc.

 Hi @Jamiel Strickland can you tell me what bandit signs are? I have an app called deal machine, that I was going to use to find the seller. What would be some advice you give for a first investment? Should I start off by flipping a house or renting out an apartment buillding. 

Originally posted by @Jeremy Francis :

@Kahla Henry Welcome to BP! I am new in St. Louis as well and hoping to get going in flipping and some buy and holds. Maybe we can do some deals together down the road!

Hey! we would have to keep in contact with each other. What kind of deals are you interested in doing , and in what areas.

Hey, everyone thanks so much for all the help! I will be meeting with my team soon, I cant wait to share all this information everyone. I was really shocked at the kinda responces I got from everyone. Thanks again and I will definetly continue to post on here, as things begin to pick up. Can't wait till I can get my first deal.

@Kahla Henry Hi Kahla. Welcome to BP. If I were you I will listen to podcasts on Biggerpockets. You will find answers to many of the questions regarding wholesaling.

Try podcast # 012 with Sharon Vornholt. He explains in depth the concept of wholesale and techniques used. This podcast will help you understand the techniques and the jargon used in wholesaling

@Kahla Henry one of the best ways to get started in real estate is house hacking. You buy a duplex live in one and rent out the other. This saves you money on expenses and can help you save more money to buy a rental unit or house for investment. Another advantage of house hacking is that if you have a 580 credit score and plan to live there for a year you can qualify for a FHA loan which only requires 3.5% down instead of 20-30% that conventional mortgage loan requires.

Originally posted by @Chris Straface :

Hi @Kahla Henry I too am learning about wholesaling.  I thought I would drop a line because I did't see it in any of the other replies to this post. I have found this article (https://www.biggerpockets.com/blog/2013/05/03/driving-for-dollars-bible-part-1/) very helpful.  It gives a step by step process on wholesaling.  Good Hunting. Cant wait to hear how it goes.

I can’t wait to look at all this helpful information thank you.