I am so overwhelmed with the amount of information I have came across. my goal is to do a few whole sale deals by the end of the year. I am brand new to real estate. I went to a Real estate workshop recently in des moines which really motivated me to want to begin, but where do I even start? I am so lost on the beginning
Can someone give me a list of steps to go about or maybe people to get in touch with that may help?
@Alma Alejos Welcome to BP. I'm new as well but this is what I've done so far:
Go to foreclosure auctions with the intention to learn not buy. I've met some great connections there.
Start an LLC and put up a landing page website.
Advertise on craigslist every week. (I avg about 2-3 leads a week)
Meet with other BP investors for coffee
Connect with RE agents.
Evaluate properties (I'm walking through two new properties today with my RE Agent)
I've pulled two lists from the county and I'm getting ready to do my first direct mail marketing campaign.
I sat down with a local property manager to get a feel for the rental market and pick his brain on what I should be looking for.
Hopefully some of those suggestions can help get you started. Good luck!
Welcome, @Alma Alejos !
1) Join listsource.com you'll get your lists from there.
2) Pick your area. Find an area where investors are buying and market to that area.
3) once you've chosen an area, use listsource.com to get list of high equity properties (30% equity and greater) in your area.
4) use a mailing service like yellowletters.com or click-to-mail to send out your postcards or letters to potential sellers.
5) it takes a few months typically, to get the first deal because a lot of people will respond to your follow up rather than the first contact.
Obviously, this is just the quick and dirty to get you started. You will learn a lot in the process of doing everything.
Reach out to some cash buyers here on bigger pockets. And find out their criteria for buying.
Also get recommendations for good title companies in your area. Because you can't close the deal until the title is clear. Good luck!
Welcome to BP, there's truly a wealth of information here. Try using the Marketplace once you get a deal under contract. There are a decent number of Iowa BP'ers, as well as out of state folks that like to invest in Iowa for a number of reasons. I'm not very well versed in the wholesaling side of things, but I do invest in buy/hold properties, so feel free to hit me up directly with any questions on that front. Good luck!
Originally posted by @Chris Pohlson :
Hey Chris, I'm a newbie as well. Can we dig a little deeper into a couple of your suggestions?:
- Advertise on craigslist every week. (I avg about 2-3 leads a week) - I get ZERO from Craigslist. What do your posts look like/say? What section of the site are you posint your ads. Can you share here, or perhaps DM me/us?
- Connect with RE agents. - I have a mentor that tells me that I shouldn't be bothered with RE Agents, unless I'm able to buy with my own cash. Perhaps you have a different (better) perspective on this. What will connections to agents help accomplish?
Thanks so much! Andy
@Andy Cross Your mentor may be right if you're just concentrating on wholesaling. I have quite a bit of cash on hand. That said networking is networking. I'll connect with anyone I can at this point and I've gained some pretty good market insight from my meetings with RE agents.
Here's my craigslist ad this week: "If you need to sell your home quickly, we'd like the opportunity to make you a cash offer. We buy homes AS IS. No need to make repairs. No realtor fees. No commissions. If you're behind on your payments, we can help. Visit (website) and fill out our contact form."
Most of the leads I've gotten have gone to my website and filled out the contact form. They don't respond to the ad via email. I post in housing wanted.
@Chris Pohlson , thank you so much.
You say "Here's my craigslist ad this week." I'm assuming you switch up the message every week? Is that to get around being flagged as "spam?" Or perhaps it's a marketing tactic?
Thanks again! I really appreciate your insight.
@Andy Cross Yes, I switch it up. I'm trying to find that magic combination of words that gets me 20 leads a week. :) For real though I'm just trying to keep it fresh. Next week I'll probably touch on our honesty and integrity and the fact that we're local. If I were in our potential lead's shoes, my biggest hesitation would be that these "cash for homes" guys were trying to scam me. I want to eliminate that objection right away.
First pick your geographical area (State, and then city or zip code, or area code(s) etc). And then you can click on the "Property" tab and choose the equity(%) from the dropdown menu. Also make sure the last purchase date is 5 years earlier, or more. Personally, I look for houses with purchase dates of at least 10 years ago. High equity (so that you'll know they're able to sell you the house with enough equity to sell you the house. No less than 30% percent. It depends what kind of deal you're going to do. If you're wholesaling the deal or flipping it, you'll probably want them to have more equity than that otherwise there may not be room enough for you to make a profit.
But, high equity first and then all the other criteria second. Because no matter who your seller is, they need equity in order for the deal to work for you. So you can get enough of a discount.
An absentee landlord with low equity can't sell the house cheap enough because too much is still owed on the house. Anyway, that's my two cents. @Alma Alejos
Welcome @Alma Alejos , since you're new I thought I'd sing you a little song;
Step right up, ticket please, move down the isle, next seat on the left or right, move on back. Thank you!
Aaaaal Aboaaaard the wholesale circus train......
Wholesaling tricks and tips for free, just ask those here on this ride.....
Your conductor today is Mr. Guru Brain, but others are about the same......
After awhile you'll learn to see that all we did was lied.....
Your trip with us is fueled by torts, you're sure to gain your fame.....
Just travel with us on the wholesle circus train....
(Now the chorus)
Ride, ride, ride the wholesale circus train,
jokers to the front, clowns to the rear, it's all the same,
Aaaall Aaaaabord, the wholesale circus train......
Okay, now, starting out I hope you learn real estate and the industry before you hit the streets trying to deal in real estate because assigning contracts is not the right way to start out. Do some reading in the forums.
Looks like we have some real con artists in this thread, they probably don't even realize they are on the wholesale circus train. Good luck :)
You're in a great town to find deals. However this is not a profession where you will be successful if you want others to do the work for you. Much of what you ask is available ad nauseum here and elsewhere.
That said I can offer some advice. If you dont understand home values, cost of repairs (and can recognize problems) you won't be successful. You have to know what investors are looking for.
Frankly I think wholesaling is the hardest and typically the least lucrative way to invest. You pass on many of the revenue streams.... I call it selling the goose that lays the golden egg!
Thanks for posting, @Bill Gulley . You look like you have some serious credentials. I read your blog post, "Wholesaling as a business" part 1 and 2 on your website. Good stuff. Spoken like a true examiner. Others here should go to your website and read it.
Welp...this post took a childish turn. #unfollow
Thank you Chris.
To quote the Grateful Dead, "you ain't gonna learn what you don't want to know!"
Everyone has some cognitive bias, a tendency to ignore what we don't want to hear, that's pretty much the case with new folks getting into real estate wanting to wholesale.
I have to admit, the gurus are winning over the flock of newbies, mainly because the good shepherds don't lie, connive, deceive or mislead so it's not a level pasture to graze in. Like lambs to the slaughter they want the easy, step by step path to riches (LOL).
Yes, there is a difference in assigning a contract under certain conditions and them setting up conditions to repeatedly assign contracts as a business model. A bit like the drug dealer who claims he sold the briefcase not the drugs inside it.
The way wholesaling is generally thought of, assigning contracts without the knowledge of the seller, there are consequences, those consequences range from failure to jail.
Learn how to take title, it's not that hard even if you don't have money and/or good credit!
Thanks again Chris, hope you follow the advice as well. :)
Originally posted by @Andy Cross :
Welp...this post took a childish turn. #unfollow
Yes, your post certainly did! :)
Welcome to BP @Alma Alejos ! Driving for dollars or walking your target neighborhoods is a great way to get started - there are plenty of posts on this subject. I also recommenced learning about rehab costs, check out the book by J Scott for a good starting point.
you know, i've noticed in the last few months as a wannabe real estate investor, that simply taking action is better than reading about taking action. the more you know the less you will want to continue your real estate adventure, this conflict of wanting to be and wondering whether to quit will be emotionally draining. When you think you know every thing to start, you will learn something new that will make you wait a few more days, which will turn into a few weeks and then a few months until, you get to the decisive point that decides if you are going to be a real estate investor or not, so the best advice that i can give is to stick with wholesaling until u succeed,be persistent and always, always remember why you want to be a real estate investor every single day. if you dont know your why then the fist thing you should do before anything else is to find out why you want to be a real estate investor. with that i wish thee the best of luck and to be a successful real estate investor
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing