Wholesale advice for a new investor

11 Replies

Hi. Investor,

   I'm new to BG, and I'm looking to get into wholesaling, fix & flip, Cash flow property's then commercial but im currently working on getting my business entity in order as well as my network. I would like to start off with paper flips so if anyone has any advice on wholesaling, how to get started correctly and where I can get the paper work for the state of Georgia, I would greatly appreciate it.

Thank you for your response I learned  something new Mr. Wall, I appreciate that and I will ask some realtor I know. Would you yourself like to share some places i can look for off market properties.

A few thoughts:

  • 20-30 minutes surround Atlanta (I'm assuming you mean the center of ITP, so basically anything ITP or shortly OTP?) - this is a very broad range. I'd recommend honing in on one or two parts of town, at least for now. It's a-okay if you don't know where yet. I was in the same boat a few months ago, and there's no real right or wrong answer. But there's so much variety in a 20-30 minute radius that you've got to narrow it down. You can start down a path and then pivot to another if you really don't like it, but at least try to be a little more focused to start. 
  • To figure out an area, I'd start by driving around if you haven't already. See some of the areas in person. I'd recommend jumping on Zillow for a few hours, click the heart to favorite some properties you think are interesting, and then take an hour just to go look at them from the outside. 
  • If you're going to wholesale, you HAVE to learn how to analyze a deal. Every property has a "homerun price" and a "base hit" price (to put it in baseball terms). You have to learn how analyze deals to know what a good price is though. If you're wholesaling and get someone who wants to sell their house, you need to be able to figure out what a good price actually is. I'd recommend attending one of the BP Webinars where they analyze a deal. 
  • If you're serious, I'd recommend throwing down $20-40 on one or two of the BP books. All of the content in the books exists somewhere on the website, but buying one of the books will save you a lot of time by consolidating it all in one place. 
  • You can pay for a mentor, but I'd caution against this, at least in the short term until you get your feet wet. 
  • As someone else mentioned, check out the North Atlanta BP meetup - great way to meet some folks. 
  • Listen to the BP Podcast if you haven't already started. Lots of great content there, even in the very old episodes. 
  • Be warned that wholesaling is hard. A lot of folks on the BP Podcast talk about how challenging it is. You have to be smart with your time and very persistent, and you should be prepared to throw down several thousand in marketing campaigns before you see any real results (if you're going the direct mail route). 
Originally posted by @Michael Ehmann :

A few thoughts:

  • 20-30 minutes surround Atlanta (I'm assuming you mean the center of ITP, so basically anything ITP or shortly OTP?) - this is a very broad range. I'd recommend honing in on one or two parts of town, at least for now. It's a-okay if you don't know where yet. I was in the same boat a few months ago, and there's no real right or wrong answer. But there's so much variety in a 20-30 minute radius that you've got to narrow it down. You can start down a path and then pivot to another if you really don't like it, but at least try to be a little more focused to start. 
  • To figure out an area, I'd start by driving around if you haven't already. See some of the areas in person. I'd recommend jumping on Zillow for a few hours, click the heart to favorite some properties you think are interesting, and then take an hour just to go look at them from the outside. 
  • If you're going to wholesale, you HAVE to learn how to analyze a deal. Every property has a "homerun price" and a "base hit" price (to put it in baseball terms). You have to learn how analyze deals to know what a good price is though. If you're wholesaling and get someone who wants to sell their house, you need to be able to figure out what a good price actually is. I'd recommend attending one of the BP Webinars where they analyze a deal. 
  • If you're serious, I'd recommend throwing down $20-40 on one or two of the BP books. All of the content in the books exists somewhere on the website, but buying one of the books will save you a lot of time by consolidating it all in one place. 
  • You can pay for a mentor, but I'd caution against this, at least in the short term until you get your feet wet. 
  • As someone else mentioned, check out the North Atlanta BP meetup - great way to meet some folks. 
  • Listen to the BP Podcast if you haven't already started. Lots of great content there, even in the very old episodes. 
  • Be warned that wholesaling is hard. A lot of folks on the BP Podcast talk about how challenging it is. You have to be smart with your time and very persistent, and you should be prepared to throw down several thousand in marketing campaigns before you see any real results (if you're going the direct mail route). 

your last comment is so right on.. not sure why folks think wholesaling is like beginner real estate when in fact to do it profitably you have to be an expert at many functions of this .. and I just don't see how folks with no experience can really do this  or at least not blow a ton of time and money thinking this is the way to bust into the business.. I guess it can happen but as real estate goes I think this is by far the hardest thing to put together sustain and be profitable at.. other than a side hustle make some money occasionally if you darn lucky type thing.. folks I know that do this successfully spend probably 100 to 200k Minimum a year in mailers ALONE  and they have teams that door knock that get paid and Very robust back end systems.. etc etc.. this is a capital intensive business to do right..  Like I said I could not think of something harder than to be new to real estate  .. have to know marketing.. have to know direct sales skills have to know how to do Scope of Work  how to know escrow flow how to deal with picky investors  LOL.. anyway..  

@Reggie Taylor I agree with @Rush Wall . You need to find off-market deals.

One tactic that works is to send out direct mail to people who share the characteristics of motivated sellers. You can work with a list broker to get some good suggestions.

Absentee Owners has been the go-to list for a while now and has made a lot of people a lot of money. However, Atlanta is a hot market and it's most likely that they are already getting a lot of mail and multiple offers to buy.

A list broker can help with suggestions for alternative off-market lists. Owners with Low Financial Stability Scores (FSS) is one. Seniors with Long-Time Ownership is another. These can both be customized for your market and investing goals.

@Reggie Taylor @Chrissy Arnold is correct that Atlanta is a hot market and sellers are getting a lot of mail. One lady  told me she had received 42 postcards in 1 month!! 

The key to direct mailing is consistency, you have to continuously send pieces of mail to potential sellers. 

@Chrissy Arnold do you provide lists? If so, can you message me separately to discuss. 

@Reggie Taylor form what I'm reading, Atlanta is as hot as Houston. Maybe your only option is to market for off-market properties or get very close with a network of Realtors that can possibly bring you pocket listings from clients with houses in bad shape that they don't fell like listing on the MLS.

If you choose the marketing route there are several services you could use to pull your target list. Let me know if you would like a little guidance and I can get one of our reps to give you a call and see how we can get you started. 

Good luck and happy investing. 

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