I am a COMPLETE Newbie! Professional advice is most appreciated!

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I am a COMPLETE Newbie! Professional advice is most appreciated!

Shelly Floyd
Round Rock · Member since 2018 · 21 posts · 8 votes

Hello All! 

I am extremely grateful to be among the best and most experienced real estate investors out there.  Thank goodness for BiggerPockets!  I am completely new to investing and want to learn as much as I can (the right way) before making my first deal.  My main focus starting out is wholesaling. After looking over forum's, books, blogs and pod cast's, it seems like someone new in this industry should start there.   I want to know everything I can about wholesaling, so your advice or suggestions are most appreciated. 

My questions are:

1. Should I get a real estate license?  I have read mixed reviews about this topic.  I know it is part of everyone's personal journey to figure out what is right for them, but I am wondering if it is necessary or better to have one if wholesaling is what you are starting with?

2.  What lead generation tactics/websites/squeeze pages do you use? 

3. Do you use the same contract when wholesaling and just change home/owner information?  Or is every contract completely different?  I know that I will need to have a real estate attorney to make sure the contract(s) are legal for my state (Texas). 

4. I am confused on how to get funding using OPM with using no or little of my money to make the deal. 

5. Are there classes to learn contract terminology, writing, implementing, etc. 

6. I am also confused on the contract sales. Once you get a contract signed and you have control to sale the property, do you already have a buyer in place?  If so, what keeps the buyer from going to the seller directly?

I know it's a lot of questions and I truly appreciate you taking the time to answer them.   Thanks a bunch and I am looking forward to making a connection with you!

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Linda Osborn
Real Estate Agent · Austin, TX · Member since 2016 · 111 posts · 64 votes
8y

@Shelly Floyd Welcome to BP! 

Here is my take on your questions:

1. As always, I think this depends. It is always good to have an agent on your team, but depending on how you intend to find motivated sellers, having a license is not always a benefit. There are things you can do as a wholesaler working for yourself that can be ethically questionable when you are an agent. Plus, if you have your license, you will need to work under a real estate broker for the first four years as a minimum, and different brokers have different rules about what they are comfortable allowing you to do. So if you decide to go that route, make sure you choose the right broker. 

2. I am in the process of creating my website, but it is a real estate agent website, not a wholesaler website. Most wholesalers I know still do a lot of "old school" marketing....like regular yellow letter or post card mailings to motivated seller lists, or bandit signs (where allowable by law....technically not allowable in Austin, but you sure sell a lot of them, don't you?). Maybe you'll get someone to respond who has had some success in social media or other newer marketing platforms. 

3. You use the same contract, but there are certain areas of the contract that you need to fill out different than an agent or "normal" buyer would. 

4. Yes, there are, but I don't know of any right now off the top of my head. Start attending local area meetups about real estate investing, and meet some other wholesalers / investors. It is always best to learn from others who have more experience than you. But, it is very important that you understand the contract and how to fill it out correctly. 

5. Once you have the sellers signature on the contract, you own the right to buy the property. Once you have the contract in place, the best way to safe guard your interest in the property is to record the contract. And if you have a viable buyer before you have the house under contract, you do not want to let the buyer know the address or owner's names until you do have the house under contract!

You have just started your journey. There is a lot to learn. Much of it can be learned here. More can be learned by attending area meetups and meeting others who do or have done what you want to do!

Hope this helps!

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  • Linda Osborn
    Real Estate Agent · Austin, TX · Member since 2016 · 111 posts · 64 votes
    8y

    @Shelly Floyd Welcome to BP! 

    Here is my take on your questions:

    1. As always, I think this depends. It is always good to have an agent on your team, but depending on how you intend to find motivated sellers, having a license is not always a benefit. There are things you can do as a wholesaler working for yourself that can be ethically questionable when you are an agent. Plus, if you have your license, you will need to work under a real estate broker for the first four years as a minimum, and different brokers have different rules about what they are comfortable allowing you to do. So if you decide to go that route, make sure you choose the right broker. 

    2. I am in the process of creating my website, but it is a real estate agent website, not a wholesaler website. Most wholesalers I know still do a lot of "old school" marketing....like regular yellow letter or post card mailings to motivated seller lists, or bandit signs (where allowable by law....technically not allowable in Austin, but you sure sell a lot of them, don't you?). Maybe you'll get someone to respond who has had some success in social media or other newer marketing platforms. 

    3. You use the same contract, but there are certain areas of the contract that you need to fill out different than an agent or "normal" buyer would. 

    4. Yes, there are, but I don't know of any right now off the top of my head. Start attending local area meetups about real estate investing, and meet some other wholesalers / investors. It is always best to learn from others who have more experience than you. But, it is very important that you understand the contract and how to fill it out correctly. 

    5. Once you have the sellers signature on the contract, you own the right to buy the property. Once you have the contract in place, the best way to safe guard your interest in the property is to record the contract. And if you have a viable buyer before you have the house under contract, you do not want to let the buyer know the address or owner's names until you do have the house under contract!

    You have just started your journey. There is a lot to learn. Much of it can be learned here. More can be learned by attending area meetups and meeting others who do or have done what you want to do!

    Hope this helps!

    2Reply
  • Danny Webber
    Real Estate Broker · Austin, TX · Member since 2016 · 834 posts · 449 votes
    8y

    Linda- god bless you for putting together a nice response!

    My advice- pay for a good mentor!

    1Reply
  • Shelly Floyd
    OP
    Round Rock · Member since 2018 · 21 posts · 8 votes
    8y

    Thank you @LindaOsborn for all the information! You really know your business! 

    Do you know where I can find a contract to look over/keep for education purposes? Also, I would like to get a real estate attorney to go over it and explain it in through detail. I am a details fanatic. 

    When you say "record a contract" what exactly does that mean?

    How do you find investors who are willing to purchase a property they have never seen? I am assuming you wow them with the great deal, but I am still confused on how that works. I just saw a wbinar on private lending and what it means but I am still a little confused about hard lending, private investor, etc. 

    Sorry! I know these questions must be super simple to you! (And long) but I REALLY appreciate you taking the time out of your busy schedule to respond! Coffee is on me!!!

    0Reply
  • Shelly Floyd
    OP
    Round Rock · Member since 2018 · 21 posts · 8 votes
    8y

    Yes, @DannyWebber, I agree I do need a mentor! I need to soak up more information before heading down that route though. 

    0Reply
  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    8y

    @Shelly Floyd you don't need to pay for a mentor. Find meetups, network with investors and make yourself valuable to those who you want to learn from!

    [email protected]512-888-9122
    The Moorhead Team5140 Reviews
    WebsiteView Page
    1Reply
  • Linda Osborn
    Real Estate Agent · Austin, TX · Member since 2016 · 111 posts · 64 votes
    8y
    @Danny Webber LOL. Thank you!
    1Reply
  • Linda Osborn
    Real Estate Agent · Austin, TX · Member since 2016 · 111 posts · 64 votes
    8y
    @Shelly Floyd The latest contract can be found on the TREC website (www.trec.texas.gov) under "Popular Forms". You are looking for the "One to Four Family Residential Contract (Resale)" When you have a lawyer go through the contract with you, you should ask him/her about the process for recording the contract as well. I'll take you up on your coffee offer, but it'll be a few weeks!
    1Reply
  • Shelly Floyd
    OP
    Round Rock · Member since 2018 · 21 posts · 8 votes
    8y

    @LindaOsborn Thanks!! I will look it over! 

    0Reply
  • Shelly Floyd
    OP
    Round Rock · Member since 2018 · 21 posts · 8 votes
    8y

    @JordanMoorhead Thanks! I will go to meetups! 

    0Reply
  • Kelly Iannone
    Rental Property Investor · Orlando, FL · Member since 2018 · 301 posts · 354 votes
    8y
    @Shelly Floyd welcome to BP! Glad to have you here!
    1Reply
  • Shelly Floyd
    OP
    Round Rock · Member since 2018 · 21 posts · 8 votes
    8y

    Thanks Kelly! Glad to be here! I hope I make some great connections and learn a lot.

    0Reply
  • Christina J.
    Rental Property Investor · Chattanooga, TN · Member since 2015 · 208 posts · 94 votes
    8y

    Welcome, @Shelly Floyd! So glad you found Bigger Pockets - lots of folks with wholesaling expertise here!

    I don't have any special insights on your market, but here are a few things that may be helpful to you here on the Bigger Pockets website:

    You can set up keyword alerts so anytime someone posts about wholesaling or the specific market you're looking at, you'll be notified. That could be a great way to find and stay engaged with local investors and opportunities. http://www.biggerpockets.com/alerts

    You can also search for other investors and wholesalers in that area and follow their journey on Bigger Pockets here: https://www.biggerpockets.com/search/users

    I love that you've already plugged into the podcast - it's been a wealth of education and a huge confidence builder as me and my husband have pursued REI and built our portfolio.

    Best of luck to you and look forward to following your journey!

    @Shelly Floyd

    0Reply
  • Shelly Floyd
    OP
    Round Rock · Member since 2018 · 21 posts · 8 votes
    8y

    Thank you for the tips! @Christina J.  I will definitely look up the alerts and users!  BiggerPockets is super awesome and so easy to use.  I am really looking forward to learning and connecting with everyone.  So far, the people here are extremely helpful and friendly. ;-)

    0Reply
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