Newbie Wholesaler...any advice would be greatly appreciated

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Newbie Wholesaler...any advice would be greatly appreciated

Chris De Castro
Vallejo, CA · Member since 2018 · 14 posts · 4 votes

Hi guys, my name is Chris from Vallejo, CA. (NorCal to be specific). I am very new to this whole REI Wholesaling business so any tips or advice that would help me here in my area to get started would be greatly appreciated.

So just a little about myself, I am a veteran and have always been interested in real estate but never took action. I was one of those people who read about it and researched a bit but never really took action. I guess it's due to the overwhelming information out there. Paralysis Analysis I guess is the right word for it. There's just so much information and noise out there that it's hard to figure out how to get started and what steps I need to take first or who to even trust. 

That's why I finally signed up on this website and started to look around to hopefully get me started in the right direction. I hope to connect with people not just in my area but from all over who can help because I know that most, if not all of you, started where I'm at right now. 

Hope to hear back from some of you. Thanks and have a good one!

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Dave Passey
Investor · Missoula, MT · Member since 2015 · 242 posts · 177 votes
8y

As far as buyers first, I would say yes and no. When we are wholesaling, I don't typically try to cater to a certain buyer. I look for a good deal. If a deal is in fact a good deal, you will be able to sell it. Be accurate on your numbers and don't embellish them. Wholesalers are notorious for raising the numbers to make it look like a deal when it isn't. There is always room for interpretation of the information, but just make sure you can back your numbers up. 

A couple books that I think are fantastic are Crucial Conversations and Never Split the Difference. CC tells you how to approach a situation with understanding and what to say and NStD tells you how to do it while coming out of the negotiation with the your important aspects of it won for you. 

I am also an introvert and definitely get drained by continually talking to people, but that doesn't mean that we can't be exceptional at talking to people when we do talk to them!

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  • Dave Passey
    Investor · Missoula, MT · Member since 2015 · 242 posts · 177 votes
    8y

    Get to work immediately on your buyer's list. Get a few thousand people on the list. 

    Learn how to be an exceptional communicator. Learn how to really listen to people and read the things that they are not verbally saying. 

    Become an expert negotiator. This will help you when contracting houses and when selling to investors. 

    Find a title company that will be able to do assignments and double closes. Establish an excellent relationship with them. 

    However, above all, Be Honest. You will get a terrible reputation if you are not honest with sellers and buyers. Make sure that the sellers know that you are going to be selling the house to someone else and making money on it. Transparency will be your friend when an issue arises and you can explain what is going on with the end investor and why it is going to take another week for the property to close. 

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  • Chris De Castro
    OP
    Vallejo, CA · Member since 2018 · 14 posts · 4 votes
    8y

    @Dave Passey thank you for the tips and advice. I have learned that it is better to find buyers first and then look for deals after so that you know what kind of deals to look for, do you agree? 

    Any particular books you recommend or sites I should go visit to learn more especially about being a communicator and negotiator. I tend to be on the introvert side but I know it will take time to learn and become comfortable talking to sellers and buyers. 

    Thanks again for the input!

    0Reply
  • Dave Passey
    Investor · Missoula, MT · Member since 2015 · 242 posts · 177 votes
    8y

    As far as buyers first, I would say yes and no. When we are wholesaling, I don't typically try to cater to a certain buyer. I look for a good deal. If a deal is in fact a good deal, you will be able to sell it. Be accurate on your numbers and don't embellish them. Wholesalers are notorious for raising the numbers to make it look like a deal when it isn't. There is always room for interpretation of the information, but just make sure you can back your numbers up. 

    A couple books that I think are fantastic are Crucial Conversations and Never Split the Difference. CC tells you how to approach a situation with understanding and what to say and NStD tells you how to do it while coming out of the negotiation with the your important aspects of it won for you. 

    I am also an introvert and definitely get drained by continually talking to people, but that doesn't mean that we can't be exceptional at talking to people when we do talk to them!

    1Reply
  • Chris De Castro
    OP
    Vallejo, CA · Member since 2018 · 14 posts · 4 votes
    8y

    @Dave Passey great! Thanks for all the info so far. Will also check those books you recommended. I definitely agree that being an introvert doesn't mean that you can't relate or talk well to people. I get you, I use to work for an eye doctor and would talk and deal with patients all day and it can be draining but you push through and try to deal with them the best way you can. Thanks again for all the advice!

    1Reply
  • Chris JacksonPro Member
    Investor · Southold, NY · Member since 2016 · 173 posts · 154 votes
    8y

    @Chris De Castro  I am definitely an introvert and have turned into it a strength. One does need to work on that introverted side in order to break through.

    Some of the things I can recommend are :

    - go to REIA meetings and get your talk on. get your network on. hone your skills in talking with strangers. ask questions, its the best networking tool out there. introverts cant stand talking about themselves so asking questions is a natural fit. introverts just dont like the stranger aspect so once you get past that piece the question part will be a natural fit.

    - when I first started out I didn't realize it but I put too much pressure on myself. I would send out mailers, get responses from sellers be really nervous to talk to them and suck at the conversation. i was putting way too much pressure on myself to make the sale when in fact what I should have cared about first was just getting comfortable talking with the sellers first. If you have the cash I would send out a mailer and basically plan on sucking at talking to sellers and getting no sales lol. but you are paying for practice. that takes the pressure off and it helped me alot once i went into that mindset. the super sales bros out there would be like , what? thats crazy advice, think positive etc. I know what worked for me and now I can talk to sellers of a 5 Million dollar building no problem. it took me time to get there, not extra pressure and failure loops because I was not the ultimate sales person day 1. it took layering of confidence to get there

    - use introversion as an advantage. when you connect with someone you will come across as very authentic (which we are) and you will make a real relationship. what we introverts have to bridge is the numbers game, which is important. you must talk to more people to get better at it and then the magic happens

    good luck

    1Reply
  • Account Closed
    Tax CPA · Charlotte, NC · Member since 2014 · 215 posts · 186 votes
    8y

    @Chris De Castro Welcome to BP! As many will say, the deal is what matters. Buyers will come if you know your numbers and it's legitimate good deal. So work the BP calculators if you were a buy & hold investor or flipper. 

    Here are some recommended resources (not paid for mentioning anything in this post:)

    Personal Finance

    I strongly suggest learning as much as possible about personal finance (if you haven’t already) as I believe strong personal finances is the foundation for a strong real estate portfolio. For starters, BP even has a Money Podcast now!

    Software that’s helped me personally:

    YNAB – zero based budgeting system and software; their philosophy will help you get out of debt and no longer live paycheck to paycheck

    Personal Capital – a high-level net worth tracking software

    Podcasts

    Episode 108 - Grant Cardone... Just listen…

    Episode 283 Paul Thompson - Quite a new episode but I would think everyone would agree this is a top episode. Mainly, the systems implemented are fascinating (VA, automated offers, etc.) Plus...escape velocity...

    Episode 113 – Jay Papasan - Very practical slow and steady advice

    Episode 221 - Tim Shiner - his concept of equity build up and "shearing the sheep" shows some of the flexibility of real estate vs a 401k

    Last but not least, I also recommend all the tax advice given by my fellow CPAs on the BP Podcast.

    Amanda Han Brandon Hall Tax Reform Update Linda Weygant

    Books

    I have to say all of the BP books…right? :)

    The Millionaire Next Door, The Millionaire Real Estate Investor, What Every Investor Needs to Know About Cash Flow

    Guides

    Ultimate Beginners Guide, Forum Stickies, BP Calculators or spreadsheets uploaded by members

    Hope this information can give you a good start. Feel free to reach out with any questions. 

    0Reply
  • Chris De Castro
    OP
    Vallejo, CA · Member since 2018 · 14 posts · 4 votes
    8y

    @Chris Jackson I totally agree with you and thanks for all the advice. I definitely will need a lot of practice and a lot of "sucking" at talking to sellers in order to get better in the long run. I will take your advice along with the others and keep working on talking to sellers to get a feel for what and how to say certain things but generally, just to get more comfortable at it. 

    @Account Closed  wow, thanks for all the recommendations. Looks like I have a lot of homework to do! I will look into those links for sure and get started on it as soon as today! Thanks again and I will definitely reach out because I know I will have lots of questions!

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