Wholesaling now —>BRRR long-term

[Fabien Remy]

Hey everyone, my name is Fabien. I’m a college student studying accounting and I’m very early in my real estate journey.

My long-term goal is to get into the BRRRR strategy, but I know that without capital, none of that matters. So right now my main focus is building capital and learning how to analyze deals correctly before buying.

Because I’m young and still in school, I’m planning to get into wholesaling as a way to build cash and gain real market knowledge. I want to truly understand:

• How to evaluate ARV and rehab costs realistically
  
  
• How experienced investors underwrite deals
  
  
• What actually makes a deal work for the end buyer
  
  

I’d really appreciate advice on:

• What you wish you understood before your first wholesale deal
  
  
• Common mistakes new wholesalers make when underwriting
  
  
• How to best position myself now to smoothly transition into BRRRR
  
  

I’ll take any book or podcast recommendations too.

Looking forward to learning from everyone here and contributing where I can. Thanks in advance 

[Abel Curiel]

Hello @Fabien Remy

I’d really appreciate advice on:

• What you wish you understood before your first wholesale deal
• I wish I understood that many Real Estate Attorneys in New York do not do wholesale deals. Since NY is an attorney state, the seller needs an attorney to represent them and there are many attorneys who will advise a seller against a wholesale deal.
  Some reasons attorneys advise a seller against a wholesale deal:
  - the end-buyer isn't identified on the initial contract
  - the property is being sold at a steep discount
  - the attorney believes that the house could sell for more on the open market
  
  
• Common mistakes new wholesalers make when underwriting
  
  Overestimate ARV, underestimate rehab costs, underestimate holding costs
  
  
• How to best position myself now to smoothly transition into BRRRR
  
• 
  Consider speaking with friends, family, and others in your sphere of influence about your Real Estate goals. There is a good chance that there are people around you who have money (but no time) and are looking to invest in RE. You can be their source for finding deals and can partner up with them on BRRRR deals.
  
  Something else to consider would be to get your RE license. For deals that you cannot wholesale, you can either list or refer them and collect commission. It will allow you to make more $ by leveraging seller relationships even when they won't sell their property to you to your end buyer at a steep discount.

All the best!

Abel