New Wholesaler Seeking Advice

New Wholesaler Seeking Advice

Member since 2021 · 4 posts · 0 votes

Hello everyone, 

My name is Cris. New to the wholesaling and trying to find direction. Just created my BP account, looking to build relationships and learn as much as i can while being of any help to others. For the time being though, i would really appreciate some advice. 

I'm located in Northern California, Sacramento/Stockton area. I experimented on the acquisitions side of things statewide (Vacants, Pre-forclosures, HE lists) for about a couple weeks with no luck. Went online, enrolled in a wholesaling program to more so get a better understanding of the principles in wholesaling, which for the most part it gave me. I wanted to see what i was doing wrong but the program preaches a system of being the middleman in charge of bringing acq and dispo wholesalers together without necessarily doing the legwork. More so just getting on peoples buyers lists and forwarding any deals to our connections in the program which in turn gives us a smaller cut but more volume of deals without having to work directly. I figured it made sense for me to work a market virtually w/ this system considering California's market "appreciation" in it's current state and how difficult it seemed to find any deals. Some of the other people in the program are having some luck working the ATL & PHO markets which is influencing where i will start doing some outreach but I figured i'd get more seasoned investors to share their take and maybe help me see some things from a different perspective.

I know this system is not the most sustainable/scalable but seems to be the fastest way to get the ball rolling in terms of revenue as it's marketing is time consuming but free, basically just FB group outreach & direct messages. I would like to work my local market in California but what sellers ask for doesn't seem to leave me with any working deals and working direct to sellers/buyers out of state has its limitations.

Would you advise to persevere in California working direct with parties or taking the virtual approach in a different market? Any additional advice is greatly appreciated. Thanks for all your time and help in advance!

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South Jersey · Member since 2021 · 117 posts · 77 votes
4y

@Cristian Gaona Welcome to BP! Have you had the chance to read many books on real estate investing yet? While the online wholesaling program might seem a good place to start, I feel you are leaving a lot on the table. Specifically, you are performing middle man work on someone else's deal and linking people together. While that can be a place to start, you could be developing your own system, while networking with others. I highly recommend reading just two books, if you haven't already, that would give you everything you needed to develop your own systems. The "hardest" part is the daily action steps and commitment of time/effort to get it moving.

https://store.biggerpockets.com/collections/all-books/products/finding-and-funding-great-deals Finding and Funding Great Deals by Anson Young

https://www.amazon.com/gp/product/1259643883 Building Wealth One House at a Time by John Schaub

If you need anything, don't hesitate to reach out.

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  • South Jersey · Member since 2021 · 117 posts · 77 votes
    4y

    @Cristian Gaona Welcome to BP! Have you had the chance to read many books on real estate investing yet? While the online wholesaling program might seem a good place to start, I feel you are leaving a lot on the table. Specifically, you are performing middle man work on someone else's deal and linking people together. While that can be a place to start, you could be developing your own system, while networking with others. I highly recommend reading just two books, if you haven't already, that would give you everything you needed to develop your own systems. The "hardest" part is the daily action steps and commitment of time/effort to get it moving.

    https://store.biggerpockets.com/collections/all-books/products/finding-and-funding-great-deals Finding and Funding Great Deals by Anson Young

    https://www.amazon.com/gp/product/1259643883 Building Wealth One House at a Time by John Schaub

    If you need anything, don't hesitate to reach out.

  • Member since 2021 · 4 posts · 0 votes
    4y
    Hi Tim! Thank you so much for your reply. Just went through both books - Finding and Funding Great Deals by Anson Young - especially, really put the entire wholesaling deal into perspective. You are completely right, I would be leaving a lot on the table & lacking any systems in place to potentially scale in the future. Moving forward i'll definitely have to be networking with intent to build my own lists & relationships directly with buyers and sellers.

    What advice would you give to someone in California looking to start in their backyard market? How would someone be able to compete in a market so appreciated or is it best when staring off, in markets like California, to pivot out of state? Really appreciate all of your help Tim, all the best. 



    Originally posted by @Account Closed
  • South Jersey · Member since 2021 · 117 posts · 77 votes
    4y

    @Cristian Gaona I can't speak for the CA market directly as I know it is extremely competitive but; you could try driving for dollars, door knocking, speaking with property managers, calling landlords with homes for rent, etc and try to generate an off-market deal. Working in your own background is great IMO because it's an advantage you have in terms of knowing the communities and neighborhoods. Personally, I solely focus on my area right now because I know the surrounding towns in terms of demographics, average wealth, crime rate, climate, flooding issues, and so forth. I can much easier come up with comps and know who my target buyers might be. This can be done virtually as well, just prepare to spend some time researching the area. If you have friends or relatives in other areas, leverage their expertise of the area and they can be your boots on the ground (don't abuse their time of course) and you can reward them financially if a great deal comes along!

  • Investor · Dallas, TX · Member since 2013 · 100 posts · 31 votes
    4y

    @Cristian Gaona can you explain “ it's marketing is time consuming but free, basically just FB group outreach & direct messages.” More? Curious about this strategy.


    I have a larger wholesale & flipping operation in Texas. I see never people having the most success with cheaper marketing channels like SMS & Cold calling. Although many markets are very competitive, there are still deals.

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