How do I start to wholesale properties? What's the beginning point?
The first thing you need to do @James Myrthil is educate yourself on this website. I don't know what your level of knowledge is with wholesaling real estate but let me begin by saying it's the hardest thing you'll attempt to do in the REI game. Why? Because you have to know what you're doing and you'll have to know a lot about a lot, from how to evaluate one property in multiple ways for multiple deals. You'll have to know various exit strategies. You'll have to know what's legal and what's going to get you in trouble. You'll going to have to be able to research online. You'll have to be a negotiator, a salesman, a counselor, and a marketer. You have to find deals, talk to sellers, know various ways to close the deal, find buyers and then know how to close. I've been reading and asking questions for several months now and just started my marketing to find a deal. That's another thing. You have to be persistent and slightly hard-headed because you can send out 1000's of letters to potential sellers and not get a single car. Are you going to quit or keep going?
With that being said, it's a good way to start because it can potentially be done with very little money up front. Notice I didn't say no money. You have to market to wholesale and that costs money. Depending on how you approach your marketing, it can cost less than $50 to start or several thousand.
With that being said, let me give you a few action steps. At the top of the page in the search box, type in "The Ultimate Guide to Wholesaling". It's a great blog post that breaks it down in detail. From there, you'll probably get a lot of information on various topics within wholesaling and use those terms and methods to research the next thing you'll want to learn. Also, under the education tab, go to podcasts and start listening to them. There's a hundreds so start with Podcast #1 and work your way up.
There's a ton of free and great information on this website. There's also a ton of smart, seasoned, and kind-hearted investors that can answer specific questions. Feel free to ask me whatever you want. Like I said, I'm brand new but I have started my own marketing campaign and I have read A LOT. I might be able to answer it or at least send you in the right direction.
Warning: There are a lot of different people on this site with different backgrounds and experiences. Some of them hate the idea of wholesalers and as you post and interact, you may find a few naysayers. Ignore them. If this is something you want to do, go for it. Just make sure you're doing it right by being honest, transparent, and thoughtful about those involved. If you aren't, you're not going to last very long in this business. Happy Investing.
Listen to Benjamin he knows his stuff ;D. I'm still in school, but I want to become financially free. I've been learning about Real estate, mainly wholesaling since March. My experience so far is you have to educate yourself about many aspects of the Real estate business. You also ask yourself here and then when can I do my first deal, will I ever understand it all, what's my motivation and so on. It's even more difficult when you have a job or your in school.
Discipline is the next thing that you have to practise. It's hard and your doing this for months and sometimes, according to other investors, even a couple of years before some results. It all depends on your discipline. I sometimes have hard times deciding wether to play some video games or learn about Real estate :D. The best way to stay focused and disciplined is stay away from your screen, phone and so on and really take the time. Once i'm in the flow of reading I don't stop till i'm tired.
But learning isn't the only thing that will get you started. I always feel bad or not accomplished if I hadn't done anything or haven't gone forward into succeeding in my dream on that day. So what I do is a Test Evaluation. I pretend i'm doing a deal and use the calculators on the bigger pockets website to help me through it. I'll tell you you'll learn a lot. Force yourself one Test Eval a day. It shows you what you need to find out and what to learn. In the beginning I always asked myself "what do I have to learn, there's so much?!".
The truth is also you will have to sacrifice most of your free time. For me I only get to hang with my friends at school and play an hour at night after homework. Sometimes it's demotivating not having so much fun, but i'm convinced if you work hard you'll succeed.
Before you learn all that fun stuff ask yourself why and for whom your ding this. These questions are the most important throughout your Real Estate or Any Business career. Doesn't matter if it takes 30min or 5 hours you have to know those answers, because that will be the "fuel to your car". No Gas no Driving forward.
So to start read and apply what you've read. Also, Start looking for a team you'll need that no matter what. It's important for numerous reason, one is they know other things than you do. Talk to people on bigger pockets and go to your local Real Estate Club. I recommend to start with this article:How to Get Started in Real Estate With Less Than $1,000 and The Ultimate Beginner’s Guide to Real Estate Wholesaling 90
@James Myrthil yep. Beginner's guide has your back.
Can anyone give a suggestion on where to start with finding Sellers for wholesaling; Probate, Pre-foreclosure, Tax delinquent, etc? Something besides driving for dollars. Thanks
@Jon Collins where I started was with letters, I tried the yellow letter thing. It was cool at first but it didn't seem too official to me. Then I tried the post card thing, didn't work too well so I figured I would make it more personal so sellers know I'm a real person, so I made a word document basically explaining that i want to buy their property and left space to write their name and the property address by hand, this has worked for me the best. This has been the best way for me so far. But good luck on your journey, I wouldn't get caught up on if you're doing it right or if it's good enough yet because the more persistent you become, ideas will come to mind and I suggest trying whatever idea comes to mind.
are you going look to wholesale in New York or the New Jersey area? Because I hear the market out there is very tight just like it is Here in Illinois. I agree with most of what @Benjamin Barredo said the only part I don't agree with is that wholesaling is the hardest in REI....I'm not going say it's not hard because it's definitely the hardest thing I have done but I would say flips are just as hard if not harder!!! The thing about REI is people think that they can make some quick cash and go home and go plan to spend it the next weekend with friends.
Nope, incorrect there's so much patience that goes into finding good deals. But before even finding a deal if your going wholesale you NEED buyers. Without that you going sit on houses only hoping to find buyers for them. So have buyers first then they will tell you what they want and where they want it.
Honestly to be successful in real estate half of the money you get you will need to throw back to the industry for marketing,earnest money, REOs,etc..... even determine cost for rehabs is tough and it's the number one reason wholesalers lose money and get a bad name for themselvesand flippers lose money as well. Never be generous with rehab cost.
So as you can see any of this isn't easy if you plan on sticking around just have it in your mind this is going be hard but you will stick with this and become successful and if your that determine you can become the number one wholesaler in New York. I know my for instance my goal is to become the number one RE investor in Chicago then take over the entire Illinois!
Good luck and just stick with it weather the storm!
thanks for the advice you guys!
Education.Stick around as there successful wholesalers in the forums who share ideas
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