This is why almost all wholesalers fail, they try and find a way to get started with no money. If you want a long-term sustainable business then you should approach it as one. Develop a business plan, have the start-up capital that you need, deal honestly and fairly and then you MIGHT have a chance of longevity.
Sit down and plan out how you can successfully start this business. Map out what you think it will take for you to get started and how you can get to that point. Plan a budget and stick to it, your end goal will be starting your own business.
Check the credentials of those who are telling you that you can do it with no money. They're either gurus who don't actually wholesale deals (which is almost all of them) or they're people who only have a couple of deals under their belt and feel like after a few deals they know everything.
In my opinion you need a minimum of 4-6 month of living expenses and $5-$10k of operating capital. Remember, your initial expenses are going to be much higher as you get started because you will have a lot to learn. As you develop your strategy and begin to focus on what works for you, your costs will drop.
One last thing because this always bugs me, don't focus on your buyers list, it's a waste of time. Your job is to focus on deals, period. If you have 10 buyers who only want a 3/2 block home are you going to pass up a 1/1 condo that you can put under contract for 50% of what you can wholesale it for? One of my best "hits" last year came from a county about 2 hours from me. I had NO buyers but after looking at the comps I knew it was a great deal. 12 Hours after I started marketing the property I had a $20k flip. Remember, I had NO buyers but I had a great deal. That's all that matters. If you have a deal, the buyers will come. It has to be a real deal though. Successful wholesalers know what a real deal is.
@Jamaal Hunt I mean seriously. Seriously. How many times will another thread like this pop out? How many times will one see the same rinse and repeat posts? Im all for helping my fellow "rookie" wholesalers but jeez. Anyway I do agree with @Braden C. It is silly to jump into this without any money. I'll state it again each time from now on.
I am new to BP and I have seen this a lot and the BP community advises just about the same thing everytime. Being new to BP and wholesaling, it is very intimidating to get started. I finally received access to the MLS and that's what prompted me to get start and listening to the BP podcast. You MUST have money to perform marketing and a little bit of networking. The most important part of wholesaling is obtaining leads. The Rule of Thumb I have been told is.... for every 100 leads, you will probably obtain 1 or 2 deals.
Save up at least 1 hour you work each if you're a full-time employee. Say you're making 40K and that comes to $19.23/hr and you should be saving about $96.15/wk. That'll add up to $5000 in one year. Note while you're saving this money you'll know it'll grow some more from the interest. It isnt much but the point is you're sticking by it. Seriously you'll thank me later.
While building up the "cash flow" join a REIA and learn. If there are classes to learn more about contracts, clauses and among other things join them. Shoot do a quick pitch and introduce yourself you just may get a buyer/seller whom is willing to help you. At times many retired investors still is apart of the REIAs and they'll be glad to help. These REIAs are looking for some of us "young" investors to come in and take over.
Reading over some of these answers in the forums have been very helpful, in the past I have spent a great deal of money on the so called education gurs that really did not teach me anything. I am willing to learn as much as possible, as I want to build a successful future in real estate investing.
Well first I want to know, are you wanting to but the properties to keep for yourself or to flip zero down? it is easier to do no money down if you plan to flip but buy and hold is a bit more tricky.
I have done both buy and hold and flip no money down many times. It is the only way I buy my own properties to keep. Good luck, it is possible.
I know your post is old but can you explain or point to a thread explaining your method of buy and hold no money down? Thanks
[quote=Damion Hopkinson]im studying so hard right now reading books, surfing the web and talking to alot of people, just trying to educate myself. im so serious and motivated right now.[/quote]I don't think you can find a better resource than BP Nation for your education. Stick around, fill in your profile and join in the conversations.
does anyone go door to door? I have heard of getting auction dates on properties and going to talk with them, has anyone had any success with that or have advice on what to say to people with deals.
@Damion Hopkinson , I'm curious...4 years after your original post, where are you now in real estate investing? I'm a newbie and would love to hear a great story!
Hello everyone, my name is Fednel. I'm currently working as a Guard/Bodyguard for the #1 Security Company in South Florida. For sometime now I've been looking to getting into Real Estate. I have no Experience at all in Real Estate. But from what I've read in other articles. Wholesaling is the best way in start your Real Estate future in. With little to no money. As well as No Credit.
I wanted to find out where can I go to start truly knowing the ins and outs of Wholesaling? So I can build a true foundation. I truly believe that TRUE KNOWLEDGE IS KEY! So where do I start?
May be a silly question, but can someone correct me if I'm wrong:
Bird dog - An individual who goes out looking for properties to provide to a wholesaler in exchange for a referral fee.
Wholesaler - An individual who negotiates and sells the home (through double close) or places the home under contract (and assigns it) to a buyer in exchange for a wholesaler fee.
Again, I am still learning the entire wholesaling and real estate process, so some questions may be self-explanatory or seem rhetoric.
The biggest misconception in realesate out there is that you need alot of money to get started.Well im here to tell you that you dont but only if you know what your doing. I have wholesaled house's with just $1 and make several thousands dollars at closing. So im here to tell you its possible just have to get the proper knowledge but that would be useless if you dont TAKE ACTION! Good luck
Hj Tobby,Im new to Real Estate Investing and have been researching ways to get started with wholesalkng.Realizing this an old post can you advise me on where to get started, I live Delaware and need contacts for for investor buyers any information you can give would be appreciated. Thanks Randy
Hj Tobby,Im new to Real Estate Investing and have been researching ways to get started with wholesalkng.Realizing this an old post can you advise me on where to get started, I live Delaware and need contacts for for investor buyers any information you can give would be appreciated. Thanks Randy
The best place to start is the education section. I would link to it but am on my mobile device. Start in the "Education" section and maybe some podcasts. You're greatest source is DelREIA...network and search the forums. There are a group of REI looking to build a strong network of investors meeting up in Northern DE.
How to be a wholesaler with no money or little money? Watch all the BP podcasts, I mean every single one of them. It will take you light years ahead in your journey of being a real estate professional. While watching take notes. You will thank me later on. Spend time on the forum reading other people's problems/questions and see what solution others are offering. That would help you not repeating the same mistakes that others have made. Go to google and search for .pdf on real estate wholesale. There are plenty of them out there and with a little research you can find a lot of free material and educate yourself. By doing so you will have all your answers and if you still get stuck then post a specific question here on BP and someone will surely rescue you out.
Hj Tobby,Im new to Real Estate Investing and have been researching ways to get started with wholesalkng.Realizing this an old post can you advise me on where to get started, I live Delaware and need contacts for for investor buyers any information you can give would be appreciated. Thanks Randy
The best place to start is the education section. I would link to it but am on my mobile device. Start in the "Education" section and maybe some podcasts. You're greatest source is DelREIA...network and search the forums. There are a group of REI looking to build a strong network of investors meeting up in Northern DE.
How to be a wholesaler with no money or little money? Watch all the BP podcasts, I mean every single one of them. It will take you light years ahead in your journey of being a real estate professional. While watching take notes. You will thank me later on. Spend time on the forum reading other people's problems/questions and see what solution others are offering. That would help you not repeating the same mistakes that others have made. Go to google and search for .pdf on real estate wholesale. There are plenty of them out there and with a little research you can find a lot of free material and educate yourself. By doing so you will have all your answers and if you still get stuck then post a specific question here on BP and someone will surely rescue you out.
Sam, so glad I joined BP all the members are offering great insight to the needs of newbies, I will continue to take in all the Advise and use it go grow my business, good luck to you and all your future investments. Randy
My Husband & I went the a Workshop and learned a lot, but still don't know enough! We are "New" at this, both of our job fields are totally different from Real Estate! We both have the "want to" and "go get it attitude" of Investing for ourselves and helping our family!!! I have read all the comments and answers, all are very helpful, we where taught to build a buyer's list as well and it seems to be a lot of people investing here in Lubbock or just do the search for themselves!!! We was and others at the workshop fail for the "Sales Pitch" and paid $1400.00 for the training (money we really didn't have) but it was a learning experience!!! In a lot of ways ( good, bad, & ugly) One good thing did learn about this BiggerPockets Website!
Well first I want to know, are you wanting to but the properties to keep for yourself or to flip zero down? it is easier to do no money down if you plan to flip but buy and hold is a bit more tricky.
I have done both buy and hold and flip no money down many times. It is the only way I buy my own properties to keep. Good luck, it is possible.
Hi curt I’m new here I was wondering, what did you mean keeping a wholesale for yourself ? I’m still trying to learn and grasp the whole sale concept right now but essentially is the flip zero down like for example you buy a home for 110,000 and flip for 140,000 putting no money or repairs in? I apologize in advanced if the question is confusing haha
I am with Bridgette I would love some information on how to whole sale with just $1. I am really anxious to get started in the whole selling business and I literally don't have thousands and thousands of dollars to spend so using only a $1 would make the world of difference.