Should I start out by wholesaling?
Hello, y'all!
I am very curious to learn about wholesaling. I was thinking perhaps one of you lovely people here on BiggerPockets wanted to walk me through the process and help me get my first few wholesales underway. I also have a property in mind that I am thinking about purchasing; beautiful single-family residents. Hopefully, I can meet some of you other lovely people here on BiggerPockets so we can go into the real estate investing world together! I have been reading lots of books by brilliant people like David Greene and Brandon Turner among others. I find real estate to be quite fascinating.
Thank you all for taking the time in reading and responding to this post!
#1 Wholesaling Contributor
- Flipper/Rehabber
- Wilton, CT
- 3,889
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#1 Wholesaling Contributor
- Flipper/Rehabber
- Wilton, CT
although many here bash wholesaling, I started with wholesaling and look at me now... no hands!
Wholesaling (the right way) will teach you how to find off market deals
How to negotiate with sellers,
Understand seller objections (so you can become a better negotiator)
How to read write and understand contracts
How to find ARVs
How to find cost of repairs
Understand how to flip (as you are dealing with cash buyers that flip)
How to do Buy and holds, (as you deal with buyers that do buy and holds
How to do marketing (you are a marketer, not a wholesaler)
How to be awesome, smart and extremely good looking (because you are reading my post, thus connected to me in some shape or form, thus my sexiness will rub off on you.
THAT alone is worth doing wholesaling!
So yeah... not a bad way to start, AS LONG as you do it right ;)
The process is insultingly simple.
Find a motivated seller (marketing), understand the seller, and figure out what value means to them. Provide said value, and get the house under contract at the right price that ius fair to the seller and fair to your buyer and fair to you for your assignment fee. Send all paperwork to your investor friendly attorney (or title company), and they do the rest, and deal with your next deal (see what I did there?)
And Boom Handsome sexy smart and beautiful you will be with every deal you do. See how amazing I am... why? I do many deals! I am supper pretty by now!
If you can find off market sellers you will do very well. If you can't you will fail. Everything that comes after that sounds complicated, but it's the easy part and you can figure it out online or by talking to other investors.
If you're a wholesaler, you are not an investor. You're not an agent, not a title company, not a rehabber. You are a marketer. Finding off market deals should be your #1 priority and focus.
@Felix Lilly
If you want to become a wholesaler, I would recommend just getting your license and becoming a real estate agent.
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Real Estate Agent Ohio (#2021001448)
- (614) 412-4565
- https://www.reafcorealestate.com/
- [email protected]
that makes it a lot easier?
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
- 5,506
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
Work with someone local to your market. Wholesaling can get dicey if you’re in a state that doesn’t allow for it
@Jerryll Noorden I would have to agree with you.
If you go into wholesaling it will teach you a lot. Wholesaling gets a bad rap for many reasons. The biggest reason is that there is no bar, no minimum requirements at all. You only need $500 to start so you get a lot of jokers who give wholesaling it's bad name. If you wholesale with integrity and people don't get that icky feeling (this guy is Fing me feeling). Things will workout, you will learn tons, make money, and the biggest part, YOU WILL MAKE CONNECTIONS. Which will ultimately open up more doors for you! (and more $$$ :D) @Felix Lilly
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Lender
- 413-348-8346
- http://freecapfunding.com
- [email protected]
@Matthew Crivelli thank you for sharing your insight on wholesaling. I am a CNA and honestly with what free time I have I would love to slowly get into wholesaling. I want to go into radiology as my "career" but if I can have real estate investments on the side then I think it would deem itself very plausible for me in the long run. So again Matthew, thank you for helping me get going! :)
#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
- 3,638
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#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
Everyone knows someone and most of us know at least 100 people
So, start out by listing everyone you know on an Excel spreadsheet.
Why Excel? Because later, you can easily use it as your mailing list! Create columns for Name, Street Address, City, State, Zip and then contact info: Last Contact, Relationship, Status, Email & Phone.
Now, make it a goal to call at least 5-10 of these people EVERY day and ask a MAX OF THREE off the list below of who they know that:
- Just inherited a home
- Had a loved one pass away
- Is behind on their mortgage or tax payments
- Has a relative that can’t take care of their house anymore
- Has a house they’re having trouble selling
- Is facing bankruptcy
- Knows a probate attorney
- Knows a bankruptcy attorney
- etc
Why only three of the list per contact? Because on average, we can only remember three things at a time. If you try to go over the whole list, you’ll lose the attention of an average person and they won’t remember anything.
It should only take you about a month to contact everyone on your list and then the tough part – you start all over again.
Why the repetition? Because it takes repetition for people to remember things and you have to be top-of-mind when they encounter a potential client for you!
Have you ever been to McDonalds? Of course you have! So, why is McDonalds still spending billions on advertising?
One more tip – people remember stories that trigger their emotions. So, tell a story of how you (or a fellow wholesaler) helped a seller out with their challenge(s). Change your story each month as different stories will resonate with different people AND use each story to emphasize one of your “who do you know…” questions.
As you start closing deals, you will need to reinvest your profits into mailing lists and other scalable activities to grow your business.
One last thing – we recommended you create a Status column on your spreadsheet, now we’ll explain why. If you find someone that seems to know a lot of people needing your services, wouldn’t it make sense to focus more resources on them? Conversely, you will run into people on your list that just seem to be a waste of time, so you’ll want to avoid them. So, create status codes for both of these and a few in-between codes to help you work smarter, not harder.
