Wholesaling???

Question

Hello!!

What are you all thoughts on wholesaling? I'm considering starting in that direction. Any advice on how to begin or not to take that route?

-Jamie from Maryland

Glenn D. · Answer

@Jamie Wilson

Be not discouraged!!!  Wholesaling is a fantastic option.  Like @Brett Snodgrass stated it takes some work, BUT is a great way to break into the industry with little to nothing out of pocket.  So many of have either time or money and usually never at the same time as the saying goes.  The 1st biggest thing is to DO SOMETHING!!

• I encourage you to connect with your local real estate investors (REI) groups and find out who wants deals and what kind of deals.
• See if you can find a local mentor and if not use US on BP as your long distance mentors.
• Do some driving for dollars, scoure FB, and CL, Zillow and any other source of finding properties for sale
• Get them under contract and sell the deal to someone you met in step 1 or on BP.
• REPEAT!!

This has the potential of building you up a nice wade of cash to then start purchasing your own properties.

I wish you well.

Brett Snodgrass · Answer

Hi @Jamie Wilson ,

It's doable, but takes some work. A lot of people who are starting out try wholesaling as you can do it with little funds, but a lot of them also get frustrated at the time and effort it takes to get a deal. So if you're willing to put the work in - learn how to properly assess a deal and go for it. Join your local REIAs and start talking with investors. Read the good and bad on here to get an idea of what buyers are after and then look to provide just that. When you can you can find someone who wants to purchase from you and depending how it goes just might do it again. All the best!

Brett Snodgrass · Answer

@Florine Sanchez

Here's my usual breakdown of what I've seen work well

1. Set up a keyword alert for your specific area.

2. I'd then create a post on BiggerPockets saying where you are from and that you're looking for advice on how to find an ethical mentor in your area.

^This will help promote you with other people who have keywords set up for your area. (But make sure you don't say, "I'm looking for a mentor in my area, any takers?" As that will get you kicked off for solicitation)

3. Then I'd be on the lookout for established wholesalers and investors in your area that pop up from your keywords.

4. Once you find a few that look interesting, take them out to coffee. Make sure you interview them and get a feel for them. (working with them is a mutual agreement)

5. If you like them, and they seem like a good fit, then ask if you were to find some deals, if you could bring the deals to them for them to buy and then offer a 60/40 split (they get 60%) if they'll agree to walk you through the process of closing on it/selling it. And state that you'd obviously do a lot of the leg work, you'd just need to be shown what to do.

6. Then offer, if they have any other needs in their business, that you're really hungry to get involved and to learn the business, so if they needed help answering phones, cleaning toilets or whatever, that you'd love an opportunity to work with them and help out.

7. Then actually do it, if they offer you something.

8. Begin looking for deals via free resources, (here's a good guide to get you in the right direction: https://www.biggerpockets.com/renewsblog/2014/04/23/acquisitiondomination/). Also consider driving for dollars, posting signs at coffee shops, etc.

9. Learn how to run comps and analyze deals the best you can (search on the BP blog for 65% rule for wholesalers) and then when you think one might be a good deal, bring it to the investor who has agreed to purchase the property, and ask him to confirm your comps and give you feedback.

10. Then if he likes it, boom: you now have a real estate mentor and you just rinse and repeat moving forward.

Jamie Wilson · Answer

@Brett Snodgrass @Glenn D. Thank you both so much!! I will take heed!!

Tiffany S. · Answer

As the the guy above said you may want to post in other sections. You will see a lot of negative opinions of wholesalers and a lot of people that make it work. There are some people up here who are very....um.....passionate about the topic. Don't be discourage. Do your own research for your state. Feel free to inbox me if you have any questions! Good luck.

Pratik P. · Answer

Hey looks like you posted in the wrong section.  This section is for success stories.

In regards to your question,  the are hundreds of threads in here addressing your question.  There are many varying opinions of wholesaling.  Please do a quick search.

Val Peare · Answer

@Florine Sanchez I have someone that might be willing to mentor you.  Feel free to send me a message and connect.

Glenn D. · Answer

@Florine Sanchez

Excellent! Keep it up.

@Rhiannon Then find your settings and then navigate to your "Keyword Alert"s.

Glenn D. · Answer

@Florine Sanchez

Brett had some good points but for the beginner it may be overwhelming. My desire and I would gather Brett's is to encourage and get you moving not overthinking and stuck in indecision.  If you don't get overwhelmed too easily he laid out a good checklist, but I would put it simpler.

Like I said above - Be not discouraged!!!  The 1st and biggest thing is to DO SOMETHING!!  And to me that 1st step is to seek out other "Encouraging" investors by connecting with your local real estate investors (REI) group.  I just Googled real estate investor groups in Dallas and came up with a bunch. The emphasis being on encouraging.  You will find all of the neigh sayers anyway so pick out uplifting ones.  Most investors like to talk about their success and help others so it should not be a problem to find someone that is willing to point you in the right directions and help you avoid the potholes.

Glenn D. · Answer

@Rhiannon Then most welcome - my pleasure.

Wholesaling???

Most Popular Reply