What am I doing wrong?

Question

Alright, I'm doing wholesaling.Where is the best places to look for Motivated sellers?, I've called over 40 people in these FSBO magazines.Only 4 where interested.But first one was a fliper,and he was asking way too much,and told him ill call him a month to do a L/O.Second one changed his mind and rather rent the property himself.The other two I havent got ahold of yet.

I'm also in the process of getting a Real estate license within a week or so.I joined this REI club,told me if I want to purchase a property as a rental is I have to write a business plan,get a license,and get credit.Which Im in the process of doing.

I'll tell you the situation I'm in,I am 19 yrs old,I have no credit and all I have is 5k.I keep requesting several times to get credit,but getting denied every time.I made additonal money from selling models on ebay. I'm going to college in a motnh,and I need a way to pay it off or I'm going to be working a dead end job,and not using the time I work to use for RE.

After I get my RE license I plan to use the MLS as a tool for wholesaling than going through several agents to just use the MLS.What frasturates me the most, I have potential deals in front of me,and I can't do nothing.There is this property like couple houses from where I live,and it's a perfect flip for the remodeling.The problem is it just started a pre-foreclosure,and on the MLS he is asking for too much.I plan to talk with him to put it under contract,and assign it over to another investor or actually remodel the property myself,and hold as a L/OI don't know what I'm doing wrong,am I trying too hard.I'm just pressured because I'm running against time.

Nate S. · Answer

Thanks guys for the response.Actually my neighbor's property is perfect for an L/O deal.He's been renting out the property for like 2 or so year's.Over the year's the tenants havent done a very good job taking care of it.The owner lives out of state,because of military orders.He offered the tenants to purchase the property,but they turned it down.I talked to the tenants asking for the owner's email,and never gave it to me.Now I'm just waiting for a sign to be put up in the front lawn.

I don't really want to become a real estate agent.But I figured that if the seller turns down all my L/O and Subject-To's Offers,well I'll give him my last offer which is list his property.By taking some RE courses with this RE investor,taught me so much about RE that I never even knew about.I'm just getting the license to qualify for an loan to buy a property,that the people I'm working with,and use the MLS.I want to become a Landlord,in my own hometown than anything right now.

Being discipline,and following through is no problem for me,and coming from an military family.I'm not marketing right, I havent put any bandit signs,all I've done is print business cards which isnt good enough.I was more interested into doing L/O than Subject-to's,because one I can get Landlord experience,and twice or triple more in profit than Subject-To's.I havent study much in Subject-To's,because I'm kinda weary because what if I can't find an investor to assign to?

All I know about subject-to's is I buy the property under market value,then assign it over.But I havent really looked into how to talk the seller down in price.It's just I feel more comfortable doing L/O.I was planning on putting a bunch of bandit signs saying "I LEASE HOUSES"

Well as for Fliping houses,I was planning rehab the property,and hold it by doing a L/O,and using mortgage Lenders to send me Buyer-Tenants.In nebraska all I know it is an stedy market even in good,and bad markets.

Ryan Webber · Answer

Frankly as a wholesaler, your license, your credit, and your capital do NOT matter.

What matters is your discipline and follow through.

Making offers to MOTIVATED sellers is the number one thing you need to focus on. The MLS is not the place to find deals and neither is a FSBO magazine. If there is a sign in the yard saying "For Sale", it's probably not a deal. You need to find sellers before there is ever a sign in the yard.

This is done through passive marketing (ads where they call you) and proactive marketing (where you track them down and ask them if they want to sell). Passive marketing is expensive but doesn't require much time to keep it going, proactive marketing is cheap but requires continued energy and effort.

As r2 put it, focus on finding a deal by making lots of LOW offers. These offers need to be directed towards motivated sellers or you are wasting your time. Your first deal is your hardest, so its good to get it out of the way, but get educated enough so you don't completely destroy yourself on the first one.

Deals are everywhere in every market. You just need to learn where and how to look. As long as people are still buying and selling, there are deals to be found. Esnuts is a great example of that. Check out some of his posts. He's in a depressed market and still doing very well as a wholesaler.

Matt H · Answer

Just keep making lots and lots of offers everyday. And once you get your license then you can make even more offers and actually write them up on a contract which is even better. You normally have to disclose to the seller that you're a realtor though. Sometimes when you do that you might run into reluctance on the part of the seller.

The key is to just get your first deal out of the way. After your first deal it will get easier and easier. Don't hold out for the perfect deal. It doesn't exists. At this point you just need experience. The experience of doing the deal for someone in your situation is WAY more valuable than the low five figure amount you might net. So just get your first deal done asap.

Sometimes you just got to keep trying, that's all you can do. But if you keep casting someone is bound to bite.

Jeff Fry · Answer

Sun,

If you want MLS access it would be much easier and cheaper to just join an MLS as an affiliate member. In Lincoln, NE the MLS has a public side too. I'm not sure Nebraska is a good place to flip homes right now, the market is not great and it's near impossible with no job, no credit, and not much cash. I'm speaking from experience. If you want to get you license and sell real estate, I'm all for it, It's a great place to start and see the market and find a great deal (very few and far between right now). PM me if I can help.

Good Luck,

Account Closed · Answer

Before you do a lot of work gaining direct access to the MLS yourself you may want to try talking to local realtors in the area. Find one that works with investors 100% (or close to that) of the time - and they are also in the business full time. Ask them what strategies are working best in your market and your area. They will often have access to qualified people you'll need on your team. Just keep trying different strategies and don't give up.
Geoff

Tom Wood · Answer

Finding motivated sellers is not easy. You are doing the right things although I've never tried FSBO's because it seems more times than not they are not very motivated. If they were motivated, why not give it to a realtor who can get them more exposure?

It's about marketing, marketing, marketing. Having your license will help give you access to information. Just keep at it, something will work out.

What am I doing wrong?

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