I've read several posts and people seem to say that most wholesalers don't have two nickles to rub together, and don't know what they're doing, but their are some who do know what they're doing and can be very beneficial to a busy investor.
I'm an aspiring REI who is still learning, and I want to know what I'm doing before I start. I plan to start with wholesaling, using an FHA on a multi family, and eventually investing in all other avenues of the business.
I'm starting with wholesaling because yes, I barely have two nickels to rub together. That being said, I think it will be a good way for me to get some experience in the business and help other investors take advantage of deals until I can invest on my own. It seems there isn't much competition so when I prove I'm one of the few that actually knows what they're doing, I'll have some cash buying investors who will give me a chance when I say I have a deal. I'm not someone who had just saw an ad and is looking for a get rich quick. I'm looking to be involved in the business for the rest of my life, im just starting with what I have instead of sitting around waiting for tomorrow.
My concerns with investing are that to do an efficient job, and ensure I have a great deal, I will need inspections and appraisals. Paying those fees and then having the property be a dud will really set me back. How exactly do people that are starting out ensure that they have a good deal without spending hundreds of dollars on every property they have an interest in?
Hi @Adam Amero ! Wow - I know wholesaling is tempting for the new with little money, but to me, it is the whole package of a seasoned investor. Gotta have tons of market knowledge to know what things are worth, marketing for generating leads, sales & negotiation skills, empathy for the seller, creative problem solving abilities and repair estimate knowledge to name a few. Not trying to discourage you, just a warning it's not easy!
To get around paying for inspections and appraisals, when you have a property ask a realtor friend to run comps for you and a contractor friend have a look in the beginning. You will learn quickly. Your goal is to solve the seller's problem. Be a quality wholesaler who puts skin in the game and keeps the seller's interest at heart!
@Steve Vaughan It seems the key is to have friends in each category. Realtors, attorneys, fellow investors, appraisers, inspectors, contractors. Do you have any advice on how exactly you build these friendships without having anything to offer from the start?
My goal is to help sellers, investors, and myself. I know that there are many different ways to have a deal be a win-win for all parties involved, rather than taking advantage of people to get ahead. I have a few strategies with marketing, and I'm confident in my ability to get out there and find the deals, and to find investors who would be glad to work with me, even if I split 50/50 with another wholesaler. Im just not quite sure how to find these deals without paying all the inspection fees, is there ways around this, or are experienced investors eventually able to tell if a deal is good on their own?
Like I said, I'm in this business for the long run and just like everyone else, getting in the game is very intimidating and confusing, especially when you get all your information from books and websites. I need to get in on the action and learn from experience, and even if I fail 10 times ill eventually get where I want to be. Id just prefer to keep asking questions and learning and keep the failure to a minimum.
@Adam Amero why don't you invest in a RE license and earn why you learn. Hook up with a top producer who will show you the ropes.. or work for a commercial brokerage.. if you truly want to do this full time.. Commercial agents that can stick in there once they get established make KILLLER money.. and retire very wealthy as a general rule, they are on the ground floor of the bigger deals.. and believe me most of the great deals never get to market.
Put time and energy into becoming a RE professional .. not some wholesaling wanna bee because you think you can get in with no money no credit no experience... So many fail at wholesaling because they never lay the proper foundation of a RE career.
Jay Hinrichs, TurnKey-Reviews.com | Podcast Guest on Show #222
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