In college but want to start wholeselling. Tips and advice?

6 Replies

I’m a biology major and really have no interest in working for someone else. I have lots of connections in real estate and would like to pursue these so I can work for myself. I’ve done lots of research, but would like opinions from people who have tried and what some general problems are that wholesalers face. Any help appreciated. - legal? - marketing? - homeowner issues? - title company issues?

Hello and welcome to this site Adrian!  Nothing I say should be taken personally.  My first thought is that is a person who has been tricked into becoming a wholesaler.  It may not require much money to get started in that but, depending how you were grown is to do usually requires lying to the seller it's not as easy as you thought.  It's also filled with experienced investors that most will try to go behind your back to get a deal.  Have you ever been told to be honest at whatever you do?

Making a living is not as easy as it use to be.  Have you ever heard of Reverse Wholesaling?  You work for buyers instead of the sellers.  Another thing you might consider learning how to become a raiser of funds and forming a Partnership where you maintain control?  Have you ever thought of becoming a Fix and Flip guy?  There are Private Lenders out there will not only loan you the acquisition funds but the repair/rehab money that are 100% lenders and more flexible.  Unlike a Bank, they are more project focused instead of you.

  They may charge you a higher interest rate than a bank and are usually short term lenders so you might have to refinance it after 6 or 12 months so you can find a long term lender or just sell it.  Today's market might introduce you to a good buyers and a high-priced market.  You may have listened to Brandon Turner praise the house rental market but he had to own about 30 houses before he got rich.  His ability to be creative has helped very much.  You may have noticed that he has gotten into multifamily projects since then and praises both of them.

You may have heard that getting into commercial multifamily requires experience but that is a myth.  Nothing is easy and requires hard work.  If you stick to traditional wholesaling finding motivated sellers can be difficult and it is harder to compete with cash buyers if you must finance.  Owner financing can make deals easier in many ways and allows the seller to make even more money and spreads out their income which may not get enough or any income tax breaks.

There are so many ways to go but do whatever you love and concentrate on how to do it better.  Just learn how to hear "no" and do not take that personally.  You will hear "no' more than "yes".  Real estate closings are a numbers game and the more offers you submit, the better, usually.

If you have not realized it yet that there is very many softwares that can help you.  Be aware that most of the sellers on the Internet are crooks who know that emotion and fear make many sales and they are too far away to be confronted and are strangers.  Take action and do not quit.  Always do the follow up many times, soon and frequently.  Using handwritten solicitation letters might help you.

Keeping up with people that give weekly webinars like Paperless Agents talk alot about real estate marketing and how important it is to have knowledge, using professional-looking pictures and video, and popular Social Media advertising.  Shop around for a good and cheaper Title Company in regards to title reviewing and insurance.  

Stay away from HOA's. If you are going to try wholesaling, target neighborhoods about 30 or 40 years old which tend to have high equity homes. Door knocking and "driving for dollars" are two of the best for wholesalers. Self-confidence should come along with your developed know Try to be dominant at whatever you choose to do.

Good luck to you!

@Michael Lee thank you for the input! Fortunately, I’m not being tricked by anyone trying to get me into the industry, but I’m definitely treading cautiously. Real estate investment is my end game and I’m willing to really bust my butt to get there - I’m just exploring my options to get me there as quick and cheap as possible.

@Adrian Cooper Why wholesaling? It is extremely tough to find deals right now. It is even tougher to find a deal so good that you can make a profit on top of the profit the investor you sell to will  make. 

There is a lot of information here about wholesaling. You might want to check out the free guides under the education tab above. 

legal? - marketing? - homeowner issues? - title company issues?

Yes too numerous to describe in a short reply - plus ethical issues

@Ned Carey hi Ned, Well as I mentioned above, my end goal is real estate investing. After doing a bunch of research, I’ve seen that this method has gotten a lot of people where I’d like to be. Is there another path that you’d like to recommend?

@Adrian Cooper

this method has gotten a lot of people where I’d like to be

Yes out of the tens of thousands that try it, hundreds succeed. I am sure you have heard success stories primarily from those that push various types of REI education.

I am not saying you should not wholesale. What I am saying is that you have probably been misled about the amount of time, effort, and risk involved, both financial and legal. If you want to pursue Wholesaling there are lots of resources here to help you learn. 

Whether wholesaling is right for you I don't know. I know nothing about you. You even said "where I’d like to be" but you didn't say where that is. 

How to start depends on your key resources, time and effort, Knowledge and experience, and financial resources.  It also depends on your tolerance to risk and your interpersonal skills. Finding a partner or a mentor can be a big help.