I'm a beginner in the real estate investment world (Houston TX) and I'm at a road block with the countless amount of information or (misinformation) for a lack of a better word; on wholesaling. There is a plethora of information circulated around the internet and I am getting a little discouraged, and the saddest part is.... I haven't even started! My background is in predevelopment, I have over 8+ years experience in permitting (residential), surveying (platting), some commercial real estate, marketing and I'm also a real estate photographer, so I'm very knowledgable in those areas and wear many hats, but I'm clueless when it comes to the areas that follow after development. After listening to about 30 hours of multiple podcasts, tons of youtube videos, skimming through facebook groups (which btw; half these people in these groups can barely structure a sentence and are full of online drama), calling these "guarantee you 5+ deals a day programs" and after hearing they require a payment of $5,500 for information I can get for free online, I am a little weary and I'm wondering if this is as easy as 80% of people who are doing it are claiming it be ? I'm a single mom, working a full time job and side hustling as a photographer (real estate and portraits) and I'm really motivated but I don't have time or money to get steered in the wrong direction. Is it all trial and error? Does anyone have any advice for a novice like me? Is wholesaling really all that its cracked up to be?
@Alicia Ramos Do not pay for a coach when you can get free advice from the BP community. JMO.
As for wholesaling. I have never done it, but as a buy and hold investor I always laugh when these wholesalers reach out to me with their "deals." They are never what I consider good deals as I can go and make an all cash purchase for below what the wholesaler even gets it for.
I'd find another route to go if it were me. As for all the information out there, narrow it down to what your long term goals are and focus on that.
My opinion is 1% of wholesalers are making 99% of the money...low barrier to entry.
I don’t know about 1% doing 99% but there is a Pareto distribution for sure as with anything else.
I used to work with whoeselles but now I just pay a few guys finders fees based on a % of the deal size (and sometimes a kicker on my exit)
So maybe find a few legit investors and find them deals. The last guy I paid got $44k for bringing me a deal. Not shabby. It’ll be a $600k profit deal on my exit so happy to pay it .
The way I look at it is this- If you can locate, contract, confirm numbers, package, and distribute to a list of pre-qualified investors on deals that are of such quality that others will not only rush to purchase the deal, but will be willing to give you money above and beyond for doing all that work...you might as well just do the deal.
Or...at least stay in it. If you have all that then you are in a position to partner on a deal and thus finding someone who has the hands on experience to take over the aspects you aren't comfortable with (while still allowing you to "watch and learn"). i.e. As @Cody L. just mentioned, you could be contributing 44k into a project making you much MUCH more on the back end.
However, the "Wholesale" is vital if you establish a pipeline of leads. The time you save in not searching turns to all the aforementioned and your opportunity to pick and choose how you involve yourself in each deal; thus partnering on the great stuff and wholesaling the good.
Even 2% ownership in a com or multifam deal long term could be a great start to a passive income that allows you even more freedoms (choice).
ALL of the value is in the deal. W/out it, the knowledge of even the greatest pro doesn't matter.
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