RE Investing: Wholesaling and "Too Much" Education

7 Replies

This may be a half-vent. 

You might be better to go from what I've gone back and labeled (A) and drop straight to (C)

(A)

I am constantly looking for that mentor that will let me watch, learn and basically do some hand-holding as I close that first deal! (Then 5!) and get the profit sharing going!

I believe in education and have purchased so many programs about RE Investing-Books, Tapes, Courses, Licenses, Seminars, Videos... and the best advice I think I ever received TO was find a local REIA! Right up there with find a mentor, and put together your power team.

At the risk of missing someone, I've learned from courses by Carleton Sheets, Robert Allen, A Simple Man's Guide (or something), Jeff Schneider, Steph Davis, JP Moses, Patrick Riddle, Cody Sperber etc... 

Of course, on line, Phil Pustejovsky, Dana Van Hoose, 

And books from some of the above, and Donald Trump, LeGrand, Preston Ely and others

My license was obtained in 2007 and I kept it though in active till 2012 or so.

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(B)

I found a wholesale ceo one day last year and picked his brains at times. This year I linked up to several of his partners, in his group. I worked "ugly Houses"( with a partners's sticky note) Name lead Research-Which I'm very good at apparently, and Notice of Defaults.

About the same time, around April 2015, I signed up for both Cody Sperber and a Riddle-Moses Program.

[Imagine doing these things while you live out of warehouse........... Bleh ] 

Last year is when I hit the knowledge and action throttles and came in to this year with high expectations and was even trying to coach my friends, and bring (drag) them along.

[Ugh, I didn't want to delve much in to my situation, but maybe someone can relate]

So, I had an accident last year that drew me back away from a paycheck job. I'd rather be more free and have often had tip paying jobs, and seasonal positions and independent contractor titles.

I thought that internet marketing with Anthony Morrison, and doing Wholesaling was my ticket. 

I had no reserves, and when I had to rely on operating a bike taxi which was good for a few months but was not good for a few months... well I really struggled. I had a girlfriend who couldn't always see "the vision" I had. +++FInally, making 2k, 5k, 10k checks over and over! And silencing all those "voices" that told me I was wrong for daring to take on such projects!+++

Our lease was coming due and we couldn't renew. The pedicabbing kept me going for a while. I'd had a job as a driver working for a couple years and had to let it go. Then I kept that biking for a while and got another driving job which as I mentioned died after my accident...

2 sets of friends helped us (the girlfriend and me) by letting us stay and pay low rent.

I was so sure all the activity and learning I was into would pay off!!!  6 months at one place then 3 months with another set. 

This set actually was more supportive and started to learn and dream big with.
Both sets were helping me pick tape and pin up and collect my bandit signs. While I we stayed with them. And this second set had Entrepreneurial Spirits. They even were so excited and watched and recorded as I put my first Wholesale Flex-Option together.

I found it on craigslist and texted, "Are you flexible on price?"

 I received back that they were. And I tried doing a flex-option with online sgnatures and a clause stating the $10 option consideration to be paid within 5 days. I thought I had it down! We all met together and we signed live on the receipt.

Just prior to the receipt signing and $10 Cash... I got the property marketed back out: my email, and google voice blew-up! 

I startred adding to my contact list!

My friends could hardly believe that this "wholesale" stuff actually works and Cory-broke and living with us an struggling- was NOW  going places and teaching us valuable valuable lessons!

{I didn't know I was supposed to have at least 100 bandit signs to ger the best use, and the time consumption for Craigslist campaigns...all that time my friends saw me spending infront of a computer}

But, the location wasn't so desirable for some, the profit margin wasn't good enough for some, the first wholesaler was playing too fast and loose and was way low on the cost of repairs. I originally started out with a good number and bumped it up to get my FIRST one done!

It was with a wholesaler, that didn't seem to know much or understand the value of contracts. And the wholesaler became hard to reach  and I recorded my Option.

No one wanted to follow as this got more complex. It fell apart. We lost a great deal of enthusiasm and momentum. 

I since then moved belongings into storage, and moved into a warehouse. 

Living the dream....

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(C)

I get tired of all these gurus'and the non-guru gurus that keep sending the latest software, multiorginizational systematization process, or how to really ramp up to 100k per month!

Do they not remember how it was when they got their first one???

I just need to get that first one done successfully!!!!!!!

Don't tell me to lie, deceive or do something that would cause one to lose jeopardize their license either! I don't have one anymore but would practically shut down when I'd even hear to do a white lie, or use blind ads on properties I do not have or confirm with a partner I don't have....

And no I have no more money to "invest".  Playing catch up with my other "great programs"

That tangible Mentor is still allusive. At a local REIA I found a Partner recently who is learning from me as his tutor and we are pretty motivated...we knock on doors together, I had him go with me to an actual trustee sale auction, and he and I are networking and planning. And he has begun a mailing campaign!

There needs to be more info on GETTING that first Wholesale Deal Done....

I'll call him Rob.   Do we co-wholesale a deal with a flex option or maybe with a contract that reads Cory and/ or Rob an /or assigns?

Ugh! So much and so little. I'd rather pay a mentor thousands of dollars like a 60-40 split where they get the 60% as I learn from them....

JUST that FIRST DEAL (OR 5) PLEASE! 

 Anything more than this is "too-Much" Let's keep it simple and duplicatable.

[Not scaling up, not multimillion, not armies of VA's, not 87 deals per month.. the First Successful Deal!!]

I think I need to cancel nearly all the email subscriptions and maybe hang here in the Pockets... And learn from all your experience.

I found a local group but they wanted $1000 to start... Ugh again...

-Feeling like I'm missing something

wholesaling is your only tool in your toolbox is a dangerous thing in certain markets. Some people are spending 10 to 20,000 a month or more to find motivated sellers

Being a transaction engineer and looking for other kinds of problems besides Wholesaling problems I think is wise to get started

My favorite kind of problem for newbies I think is low equity, were you help the sore so I'm terms and make some money generally 3% on a lease option assignment

The feeling I get from the OP is he thinks that one deal can make him "whole" and get him out of a difficult financial  situation

A better plan is to get a job that pays the personal bills and borrow some capital to start a business

The problem with Wholesaling as your only tool in your toolbox is it takes a long time for Marketing to kick in and many people don't want your offer so there's a lot of rejection in the beginning

I like expired listings and talking to Sellers about other ways to sell their house besides cash

@Cory Baker

Whoa.  When I get overloaded I tend to get stuck, confused and frustrated too!  

Your 'sphere of influence' or whatever needs to know you are looking to help a seller unload their home burden.  You FB buddies, church friends, gym mates, librarian, etc need to know you are a problem solver.   All the vacant high grass houses and their neighbors need to be getting your flier.

When you find an opportunity, bring it to your meetup or REIA and ask an ethical, seasoned pro to analyze it with you. We always love analyzing deals! @Brian Gibbons has an excellent suggestion with low equity pretty houses.  The buy houses guys don't do those.Their business model is based on high equity fixers.

Many other suggestions to find that first opportunity I am sure.  You have to do what the big guys in Phoenix can't.  You're market is chalk full of wholesalers.  One guy I just heard on a podcast makes 200 phone calls/day and posts 12 craigslist ads. Every day.  Got to stand out from the typical we buy houses mailers and CL posts @Cory Baker !   

Cory,

I can relate to your pain!  You think you are doing everything you can and things are not working out the way the Guru told you it would.  Welcome to the real world!  I work with several investors helping them take their business to the next level.  That may be beginner, intermediate or advanced.  I agree with you that you should be working with someone.  Someone that is doing what you want to be doing.  It should not be hard!  You are basically offering to bring leads to another investor in return for some split and the knowledge of putting the deal together from start to finish.  By the way, if you become good at finding deals, cash buyers or private money you will never starve in this business.  These are all essentials every investor is always looking for.  If you can provide them you can always make money!  I agree with Brian about expanding your knowledge base and looking into other ways of buying properties.  If you generate leads then you need to have multiple ways of helping these sellers.  The more options you can provide the better chance you can create a deal.  I know things seem tough right now.  Markets are saturated with investors right now.   We are competing for many of the same deals.  You cannot compete with investors that are spending $20k or more a month on marketing.  You need to set yourself apart.  The last thing I will leave you with is that if creative real estate was easy everyone would be doing it!  Learn everything you can, zag when others are zigging, and commit to never giving up!  

Hi @Cory Baker

You definitely have the right frame of mind in seeking a mentor - a seasoned local investor can be invaluable in helping you learn the tricks of the trade here.

I definitely struggled to find some great mentors myself, however, and I think that my experience could perhaps be of value to you!

In case you are interested - I wrote about my experience finding mentors in this "Ultimate Guide to Finding Incredible Mentors" - I hope that it helps you with your search!

First, stop buying all the books, seminars, etc, from every guru around. I've never bought one course, and I own quite a few properties. Go the library and read, read, read for free. You will never copy what a guru has done (well, maybe a little bit).  Wholesaling may not be your deal right now. You may need to go a different direction with investing first, or perhaps consider birddoging for someone. I would suggest getting a job with a paycheck as another poster stated above, even if part-time, then activate your real estate license. Working with other investors as they purchase properties will be a great way to learn.  Contact me, if you are looking for some place to hang your license. I am just starting to accept new agents.  You can also feel free to contact me directly, if you have any questions about a deal you find. I'm happy to help.

Dawn

Sorry to hear about your mishaps. Unfortunately, we hear more about the bad than the good. Finding someone to work with, whether a coach or mentor, can be tough. It all boils down to finding someone who works well with your personality and who can be a good fit. I cover this topic in my new book. It can be done but may just take some persistence and time. Best of luck, don't give up! :) 

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