Newbie to Wholesaling. What are my first steps?

Question

Hi All, my name is Stevan, this is my first question in the BP forums and i'm excited to hear what you have to say! I'm reaching out in hopes to get some tips and advice on taking my first steps to starting my wholesaling business.

I have an idea of a market I want to start wholesaling in but I don't know my next steps on getting started. Do I go to title company and request a list of homes in a certain criteria & start making cold calls? Where do I find my leads? What is my first step?

I'm more than ready to get started on this. It's been a dream for 2 years and I've got a fire inside to get this thing rolling in 2023. Any other advice on what to avoid and what expenses to expect is greatly appreciated. Thank you!

Wale Lawal · Answer

@Stevan Navarro

Now that you understand the various benefits of becoming a wholesaler, you may be wondering exactly how the wholesaling process works, and what kind of skills and resources are required to successfully complete your first deal. The following wholesaling real estate step by step guide will help answer your questions:

• Mind your due diligence
• Build a buyers list
• Market to motivated sellers
• Get a property under contract
• Find your end buyer
• Assign the contract
• Close the deal and cash your check

Read this article for more information https://www.fortunebuilders.co...

All the best!

Jerryll Noorden · Answer

I wouldn't waste my time starting with a buyers list. It will absolutely get you nowhere. (This is just me)

You need to make money. You make money by getting good leads. so you focus on that.

1). Set up your business legally.

2). Get a website, and focus on credibility and providing value

3) Set up an LLC or whatever other legal protection you want.

4) Make sure you are educated enough to go through a complete transaction

5) Make sure you understand ARV, Cost of Repairs, Profit margins and all other numbers.

6). Understand the contract you will use and be prepared to explain every point on the contract. If you hand over a contract and the seller asks you a question about it and you stutter.. you are done!

7). Work on your web presence, social media, and website so you look like an authority in this space.

8). Get ready for paid marketing, Facebook, TikTok, Instagram, Youtube PPC

9). Get leads, Close deals.

If your deals are good, buyers will come. There is no need to spend extra time and effort growing a buyers list.  As a savvy investor, I can tell you, the more buyers you have on your list the LESS efficient your dealmaking will be. I want 16 to 30 buyers and NO MORE!!

FORGET buyers lists it will hinder you! Instead, focus on getting homerun deals signed!

Pablo Avila · Answer

To further add to finding buyers and not waste your time with "so called buyers" who are all over Facebook and these type of forums.

My approach used to be to pull the real-estate agent lists and then do a bit of Excel magic to determine who's actually an investor.To further explain, many of the real-estate folks that have an active or expired license are actually investors. To use Texas as an example (www.trec.texas.gov), you have access to the list of these individuals which include contact information (Name, email, phone, etc.). I would then match their address to the appraisal district data (which is also available for most counties) and sort by deed/sale dates looking back for the last year, and I would focus on zipcodes. I would then see a trend of these individuals buying numerous amount of properties in specific zipcodes and would determine that these were all buyers. After this I would contact them to introduce myself and see what they were looking for. I have a data background so this was fairly easy for me to put together (created databases for this), but I'm sure you can do the same with Excel. I hope that helps!

Eliott Elias · Answer

Tell them you are actively looking for deals and want to find them the perfect deal. See what they are looking for

Eliott Elias · Answer

Build a good buyers list, after you know what they want go find the deal

Ramsin Jacob · Answer

Find the deal directly, then find the investors.  Investors are easy to find.  The deal is the juice.

Danielle Layne · Answer

Hi Stevan! I’m an RE investor based in Monterey county! I’m about an hour from you. I’d love to be on your list. Send me your distressed properties. I’ll message you with more info.

btw, congrats on finally getting started! I only just found out about all this about 2 ish weeks ago. I’m excited to go into the new year with all this as well. Cheers to us! and wish you the best in your endeavors.

Jeet Sangha · Answer

I recommend you read a book on flipping by Nick Ruiz. It's called Flip.

It's a short, concise read and down to action without any bs.

Bill Gulley · Answer

Seriously, I didn't even read the replies above. After all these years, the basics still apply.

The reason I left is because of all you short timers wanting the get rich quick scheme. I left because most of you want something for nothing or, at least for very little.

The other side of this is the scammers who want to take you for a ride making money off of you with classes, programs, classes, loans or other support, you poor ignorant children.

I've buried 5 "wholesalers" in my area, trickery and the B.S. you pull on the public is worthy of nothing short of jail.

You're lying if you say you have a buyer, or that you will buy a property and you don't have the ability to do so yourself.

For those too lazy or too stupid to pass a real estate exam and get a license, get off the block, you need to find a morale ground to base your business on. Being a deceitful  SOB isn't a winning option.

I'm pretty sure, even today, there is no one on this site that is up on the compliance issues of RE more than I am. Ignore me at your own risk. Search for my past posts, learn real estate functions and law, be a honorable broker and make money honestly, otherwise, folks like myself will bury your cheating businesses when you cross one of us.

It's really a pitiful thing to watch.

Alfonso Aramburo Zepeda · Answer

The most important thing to do is put those deals under contract, once you have it, the rest will flow. Best of luck!

Newbie to Wholesaling. What are my first steps?

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