Intrigued by Wholesaling, but it may not be my best strategy
Miami Lakes · Member since 2023 · 9 posts · 9 votes
Intrigued by Wholesaling, but it may not be my best strategy
Most Popular Reply
Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
3y@Pedro Garcia, I would not consider wholesaling an art haha. If anything real estate sales is far more science-based, tracking lead and lag measures, analyzing deals, estimating rehab expense, underwriting offers, etc. I suppose the art aspect is negotiating with the homeowner and discovering their pain points. I agree with the other comments above, wholesaling is a full-time business, not a side hustle by any means. Stick with your current w2 and save for your first investment purchase. You're already in a great starting position with solid income and no debt, lenders love to see this.
15 Replies
- 3yDon KonipolBusiness MemberInvestor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votesA wholesaler, as the term is currently used, or more accurately MISused in real estate, is essentially brokering property. There are some “twists” to it that may allow the wholesaler a greater, perhaps much greater profit than a licensed broker would earn by listing the property. The goal of the wholesaler is to convince a seller to allow him to tie up his property for no option fee and try to find a buyer at a higher price. The difference minus expenses is the wholesalers profit.
Quote from @Pedro Garcia:
Hello All,
I am intrigued by the "art" of wholesaling and I am drawn to it, by reading, listening to all the strategies that I hear. It seems like a lot of work, but it is rewarded by a great level of satisfaction when it comes through. I understand it takes a lot of work which equals time. I have solid W2 income and no debt. Additionally I have saved capital to pay a down payment or two, or three depending on the amount and rehab, or leverage into a loan. The issue is that my W2 takes time, in a career that I like, but I would like to dive further into REI. I question if I am better of attempting Wholesaling , or if it just makes better dollar sense to find a good deal as a buyer and Rehab and Flip, or BRRR. Any opinions are appreciated.
Wholesaling under this definition is NOT investing. If you want to INVEST in real property you need to complete the purchase transaction with yourself on the buy side and you need to deploy capital in the purchase ( or utilize debt).
I’ll also content that fix n flip is not real estate investing either. Money invested in fix n flip, wholesaling, brokerage is money invested in a BUSINESS ( so happens to be a real estate related business), - Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes3y
Wholesaling is one of the most time consuming sectors of real estate there is. You can not work a W2 and wholesale on the side. You need to pick one career path and commit to it.
- Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes3y
@Pedro Garcia, I would not consider wholesaling an art haha. If anything real estate sales is far more science-based, tracking lead and lag measures, analyzing deals, estimating rehab expense, underwriting offers, etc. I suppose the art aspect is negotiating with the homeowner and discovering their pain points. I agree with the other comments above, wholesaling is a full-time business, not a side hustle by any means. Stick with your current w2 and save for your first investment purchase. You're already in a great starting position with solid income and no debt, lenders love to see this.
- Investor · Charlotte, NC · Member since 2019 · 20 posts · 13 votes3y
@Pedro Garcia, your situation sounds like a perfect opportunity for a house hack! Purchase a 2-4 unit property with an owner occupied loan, (3.5%-5% down payment) and live in one of the units while renting the other units out. This should have the tenants paying most of or all of your mortgage! This should allow you to save more money, quicker, for your next investment property. Once you move out you should cashflow. Wholesaling or working in real estate is definitely a full-time commitment. Best of luck!
- Member since 2016 · 45 posts · 38 votes3y
Quote from @Jerryll Noorden:
Gang... why are any of you surprised you find it "hard"? This is data. Numbers, logic, common sense. ALL this info I mentioned here is not new to you?! You KNOW this. You simply choose to ignore it and expect that somehow the laws of the universe, data, and experience, don't apply to you, and think that by doing the exact same thing everyone is doing, that is NOT working, somehow it will work for you...love it - this is a masterclass in shattering self-deception.
there is but one simple reason that 98% of posts in forums like this are complete ether - human greed and ignorance.
wait - that sounds like two reasons!
these very same reasons have fueled the 'get rich quick' engines for centuries, if not longer.
this is one of the most reliable ways to make money - promising others an effortless path to riches.
how else could fraudulent schemes ever work, if not without the full cooperation of the victim - ahem, the freshly minted 'investor' or 'house hacker' or 'generational wealth builder'?
these are all valid goals, for sure, and i respect anyone who pursues these with intelligence, determination and pragmatism - and data, lots and lots of data! - but most folks are looking for something else entirely, something that simply does not exist.
as soon as one puts all of these fantasies aside, as soon as one looks deep inside and makes the decision to actually engineer a decent framework up front - which includes a sharp self-education in correctly perceiving reality, along with all of the practical matters that Jerryll mentioned above - then the true path begins.
imo, this is a genuine awakening - believing in one's self above all others, working diligently and intelligently, accessing all of the wisdom that is already inside of you.
all the best!
!
- Miami Lakes · Member since 2023 · 9 posts · 9 votes3y
Another thing has become apparent with locations like Miami, Ft. Lauderdale. When looking for ugly houses you are limited to more rundown neighborhoods which are much older homes in older neighborhoods. As newer homes are built they usually are accompanied by stricter city codes, or HOAs that enforce upkeep. This reduces the possibilities of homes going into the "abandoned look" state. This is not to say that there aren't motivated sellers which situations that an REI can resolve for them.
- Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes3y
Quote from @Pedro Garcia:
Another thing has become apparent with locations like Miami, Ft. Lauderdale. When looking for ugly houses you are limited to more rundown neighborhoods which are much older homes in older neighborhoods. As newer homes are built they usually are accompanied by stricter city codes, or HOAs that enforce upkeep. This reduces the possibilities of homes going into the "abandoned look" state. This is not to say that there aren't motivated sellers which situations that an REI can resolve for them.
Don't mean to hijack this thread, but allow me once again if you don't mind.
Be careful.Everyone is looking for "distressed properties". That is yet another illusion the masses will sell you on.
It is not distressed properties you are after. You are after motivated sellers. Big difference!
All dogs are animals, yes? Does that mean that all animals are dogs? Nope!
It doesn't work the same backward.
You absolutely could have found a property that is distressed that so happened to be owned by a motivated seller... absolutely, BUT again, that doesn't mean that if you find a list of distressed properties, you have a higher chance you have a list of motivated sellers.
All you have is that IF the owner is motivated THEN you can most likely get a good deal out of it (equity).. PROVIDED they are motivated. Different than: a distressed property implying motivation
I literally have 7 distressed properties sitting there waiting for me to flip them. Ask me if I am a motivated seller. No!
I get a TON of motivated seller leads in my inbox daily from my ranking website, and most of my leads are not trying to get rid of a distressed property. I get properties at a huge discount absolutely, but they are not distressed properties.
The lesson here is that "Opinion" doesn't equal data. "It making sense to you" doesn't equal data. It is a hard lesson to learn to leave emotion and ego behind and never assume that however much sense it makes to you, that doesn't mean it is correct. Always try to see data, nothing else.
There is no substitute for DATA!!
Again, take it, leave it. hope this helps at least some of you!
- Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes3y
While so many responses here are so negative, allow me to enlighten you with a bit of positivity. Let me crush some myths here.
Myth #1: Wholesaling Takes A Lot Of Work
ANY solid business takes a lot of work. Do you think flipping is not a lot of work? Do you really think starting a SAAS business is not a lot of work? How about starting a bakery, or a restaurant? Guys, calm down. Stop being negative. Stop hammering on wholesaling because you personally have a grudge against it. Just move along. This is the wholesaling forum. What are you doing here if you are just going to bash it? Now,
Wholesaling is "NOT" a lot of work. This is not an opinion, this is a fact. I am completely removed from any work so NO ONE can tell me this is not true. Anyone that says that it is a lot of work simply is doing it in a way that it is a lot of work FOR THEM. (they are doing it wrong)
Myth #2: Wholesaling is not "real estate investing"
Who cares what it is called or not called? It makes money and that is what we all care about. Not the fact of whether or not someone can call me a "Real Estate Investor". I am not doing it to be called a "Real Estate Investor". I am doing it because it allows me to eat crab legs every night. It allows me to go to Thailand and eat crispy chicken skin as often as my heart desires.
If you are having a hard time wholesaling, I can help you fix it right here, right now... but you have to let go of everything all these gurus (or these replies here for that matter). Unlearn everything you think you know.
Here is the formula for wholesaling success:
Wholesaling successfully depends on your ability to find motivated seller leads.
So anyone that claims it is hard, should be asked: "well. HOW are you generating your leads?" Right?
Cold calling = work + time+ and money... FOREVER! As in, you stop putting in the time money, and effort and your deal flow stops (= stupid). = BAD quality leads. (Deal) Conversion rate less than 3%
Driving For Dollars = work + time+ and money... FOREVER! As in, you stop putting in the time money, and effort and your deal flow stops (= stupid). = BAD quality leads. (Deal) Conversion rate less than 3%
Door Knocking = work + time+ and money... FOREVER! As in, you stop putting in the time money, and effort and your deal flow stops (= stupid). = BAD quality leads. (Deal) Conversion rate less than 3%
DMM = work + time+ and money... FOREVER! As in, you stop putting in the time money, and effort, your deal flow stops (= stupid). = BAD quality leads. (Deal) Conversion rate less than 3%
Text Blasting = work + time+ and money... FOREVER! As in, you stop putting in the time money, and effort, your deal flow stops (= stupid).= BAD quality leads. (Deal) Conversion rate less than 3%etc. etc.
It is hard because those methods you use to generate leads, (what your success as a wholesaler depends on) is less than 3%!!
Gang... why are any of you surprised you find it "hard"? This is data. Numbers, logic, common sense. ALL this info I mentioned here is not new to you?! You KNOW this. You simply choose to ignore it and expect that somehow the laws of the universe, data, and experience, don't apply to you, and think that by doing the exact same thing everyone is doing, that is NOT working, somehow it will work for you, just because you are you...Wholesaling is not hard. Wholesaling the wrong way is hard! Get it?
It is all about lead generation:
How can wholesaling possibly be hard when 4 to 12 motivated sellers contact you every single day begging you to make them a cash offer? Yes this is what I deal with. I spend no money no effort, no nothing and people find me and ask me to make them an offer. Do it the right way and it is easy!
Now allow me to help anyone willing to listen, and that has a bit of common sense.You want to start wholesaling yes? You want to start a business.
OK Do you have a website? I mean a REALLY awesome good website. Do you have your own pictures on your site? Do you have a stand-alone blog? A pimped-out Facebook business account? Linked in account? A solid Youtube account where you actually provide value? Educate the masses and give value? Did you spend significant time and effort investing in you? Are you working on a positive image online? Are you credible, do you look like sound, taste, and act like an actual professional business?
OR..
Did you just jump in driving for dollars, cold calling, and texting? Did you choose the lazy route and believe what you WANT to believe? Oh I know "your" type. The gurus tell you that you can become a millionaire with NO MONEY AND NO CREDIT right? And this sounds SOOO amazing, you simply ignore all common sense and CHOOSE to believe it with your core! How many of you started calling, driving, bandit signing, texting, without taking a good look at yourself and your business and taking a genuine evaluation and realizing that I (as in you) wouldn't do business with you, so then why would others? Many many many of you did this. And.. many many many of you say it is hard to whoelsaling. Coincidence? I think not!
Business 101. People will not do business with you if they can't trust you. Now.. why would ANYONE trust a person that relentlessly and desperately calls, texts or DMMs someone without a SHRED of evidence of credibility?
If you want to start wholesaling or start any business for that matter. SET UP FIRST.
Look like a business before you spend money time and effort trying to get leads. Why do you think it is so hard to get leads? Stop listening to other people and use your own intelligence, because I PROMISE you, 90% of the people here are absolutely not qualified to give anyone any advice. ANYONE that tells you to drive for dollars, cold calling or texting, instead of asking you if you have a positive image online set up, honestly shouldn't be giving ANYONE any advice.
Now, as we are talking about credibility, let me show you I am not just all talk.
Apply what I preach.
I started with building a reputation. and a web presence. I made sure I looked credible. Even if you are just starting out with zero reviews .. it doesn't matter. Look sound act taste smell the part... and you will be fine.
Then I realized immediately that success REALLY does depend on your ability to find motivated seller leads.
Sadly, there doesn't exist a way to find motivated sellers. DOES NOT EXIST. The sooner you accept this the sooner you can do things that actually work.
So how can you get in touch with motivated sellers?
Easy!
YOU have to make it extremely easy for them to find you.
Yup, either rank #1 on Google (which is what I decided to invest all my time and effort in when I started) or do paid ads like Youtube, Facebook, Instagram TikTok etc. etc.
As I said, I did SEO.. I ranked my site #1 on Google.
Gang, I ranked my website #1 myself, for free. You can do it for free. Watch my Biggerpockets conference video for a primer how to do it yourself.
And lastly, here is what YOU can accomplish when you start actually thinking instead of blindly following what everyone else tells you to do.
Good luck everyone!
And PLEASE stop listening to these nay-sayers!! Its ridiculous!! Not because THEY can't does it mean you can't either!
- Member since 2022 · 17 posts · 5 votes3y
Quote from @Pedro Garcia:
Hello All,
I am intrigued by the "art" of wholesaling and I am drawn to it, by reading, listening to all the strategies that I hear. It seems like a lot of work, but it is rewarded by a great level of satisfaction when it comes through. I understand it takes a lot of work which equals time. I have solid W2 income and no debt. Additionally I have saved capital to pay a down payment or two, or three depending on the amount and rehab, or leverage into a loan. The issue is that my W2 takes time, in a career that I like, but I would like to dive further into REI. I question if I am better of attempting Wholesaling , or if it just makes better dollar sense to find a good deal as a buyer and Rehab and Flip, or BRRR. Any opinions are appreciated.
I seem to be in the same boat as Pedro. Good income, no debt, cash on hand, but ultimately a massive noob (no offense Pedro) in this game.
- Member since 2022 · 17 posts · 5 votes3y
Quote from @Jerryll Noorden:
While so many responses here are so negative, allow me to enlighten you with a bit of positivity. Let me crush some myths here.
Myth #1: Wholesaling Takes A Lot Of Work
ANY solid business takes a lot of work. Do you think flipping is not a lot of work? Do you really think starting a SAAS business is not a lot of work? How about starting a bakery, or a restaurant? Guys, calm down. Stop being negative. Stop hammering on wholesaling because you personally have a grudge against it. Just move along. This is the wholesaling forum. What are you doing here if you are just going to bash it? Now,
Wholesaling is "NOT" a lot of work. This is not an opinion, this is a fact. I am completely removed from any work so NO ONE can tell me this is not true. Anyone that says that it is a lot of work simply is doing it in a way that it is a lot of work FOR THEM. (they are doing it wrong)
Myth #2: Wholesaling is not "real estate investing"
Who cares what it is called or not called? It makes money and that is what we all care about. Not the fact of whether or not someone can call me a "Real Estate Investor". I am not doing it to be called a "Real Estate Investor". I am doing it because it allows me to eat crab legs every night. It allows me to go to Thailand and eat crispy chicken skin as often as my heart desires.
If you are having a hard time wholesaling, I can help you fix it right here, right now... but you have to let go of everything all these gurus (or these replies here for that matter). Unlearn everything you think you know.
Here is the formula for wholesaling success:
Wholesaling successfully depends on your ability to find motivated seller leads.
So anyone that claims it is hard, should be asked: "well. HOW are you generating your leads?" Right?
Cold calling = work + time+ and money... FOREVER! As in, you stop putting in the time money, and effort and your deal flow stops (= stupid). = BAD quality leads. (Deal) Conversion rate less than 3%
Driving For Dollars = work + time+ and money... FOREVER! As in, you stop putting in the time money, and effort and your deal flow stops (= stupid). = BAD quality leads. (Deal) Conversion rate less than 3%
Door Knocking = work + time+ and money... FOREVER! As in, you stop putting in the time money, and effort and your deal flow stops (= stupid). = BAD quality leads. (Deal) Conversion rate less than 3%
DMM = work + time+ and money... FOREVER! As in, you stop putting in the time money, and effort, your deal flow stops (= stupid). = BAD quality leads. (Deal) Conversion rate less than 3%
Text Blasting = work + time+ and money... FOREVER! As in, you stop putting in the time money, and effort, your deal flow stops (= stupid).= BAD quality leads. (Deal) Conversion rate less than 3%etc. etc.
It is hard because those methods you use to generate leads, (what your success as a wholesaler depends on) is less than 3%!!
Gang... why are any of you surprised you find it "hard"? This is data. Numbers, logic, common sense. ALL this info I mentioned here is not new to you?! You KNOW this. You simply choose to ignore it and expect that somehow the laws of the universe, data, and experience, don't apply to you, and think that by doing the exact same thing everyone is doing, that is NOT working, somehow it will work for you, just because you are you...Wholesaling is not hard. Wholesaling the wrong way is hard! Get it?
It is all about lead generation:
How can wholesaling possibly be hard when 4 to 12 motivated sellers contact you every single day begging you to make them a cash offer? Yes this is what I deal with. I spend no money no effort, no nothing and people find me and ask me to make them an offer. Do it the right way and it is easy!
Now allow me to help anyone willing to listen, and that has a bit of common sense.You want to start wholesaling yes? You want to start a business.
OK Do you have a website? I mean a REALLY awesome good website. Do you have your own pictures on your site? Do you have a stand-alone blog? A pimped-out Facebook business account? Linked in account? A solid Youtube account where you actually provide value? Educate the masses and give value? Did you spend significant time and effort investing in you? Are you working on a positive image online? Are you credible, do you look like sound, taste, and act like an actual professional business?
OR..
Did you just jump in driving for dollars, cold calling, and texting? Did you choose the lazy route and believe what you WANT to believe? Oh I know "your" type. The gurus tell you that you can become a millionaire with NO MONEY AND NO CREDIT right? And this sounds SOOO amazing, you simply ignore all common sense and CHOOSE to believe it with your core! How many of you started calling, driving, bandit signing, texting, without taking a good look at yourself and your business and taking a genuine evaluation and realizing that I (as in you) wouldn't do business with you, so then why would others? Many many many of you did this. And.. many many many of you say it is hard to whoelsaling. Coincidence? I think not!
Business 101. People will not do business with you if they can't trust you. Now.. why would ANYONE trust a person that relentlessly and desperately calls, texts or DMMs someone without a SHRED of evidence of credibility?
If you want to start wholesaling or start any business for that matter. SET UP FIRST.
Look like a business before you spend money time and effort trying to get leads. Why do you think it is so hard to get leads? Stop listening to other people and use your own intelligence, because I PROMISE you, 90% of the people here are absolutely not qualified to give anyone any advice. ANYONE that tells you to drive for dollars, cold calling or texting, instead of asking you if you have a positive image online set up, honestly shouldn't be giving ANYONE any advice.
Now, as we are talking about credibility, let me show you I am not just all talk.
Apply what I preach.
I started with building a reputation. and a web presence. I made sure I looked credible. Even if you are just starting out with zero reviews .. it doesn't matter. Look sound act taste smell the part... and you will be fine.
Then I realized immediately that success REALLY does depend on your ability to find motivated seller leads.
Sadly, there doesn't exist a way to find motivated sellers. DOES NOT EXIST. The sooner you accept this the sooner you can do things that actually work.
So how can you get in touch with motivated sellers?
Easy!
YOU have to make it extremely easy for them to find you.
Yup, either rank #1 on Google (which is what I decided to invest all my time and effort in when I started) or do paid ads like Youtube, Facebook, Instagram TikTok etc. etc.
As I said, I did SEO.. I ranked my site #1 on Google.
Gang, I ranked my website #1 myself, for free. You can do it for free. Watch my Biggerpockets conference video for a primer how to do it yourself.
And lastly, here is what YOU can accomplish when you start actually thinking instead of blindly following what everyone else tells you to do.
Good luck everyone!
And PLEASE stop listening to these nay-sayers!! Its ridiculous!! Not because THEY can't does it mean you can't either!
Thank you dude, that was awesome! I saved this post locally to my PC.
I think when you say the 'art' of wholesaling you really mean the art of deal finding. Wholesaling and deal finding are 2 different things. Deal finding is the objective and wholesaling is one option you have once a deal is found. With any real estate exit strategy, you should do some due diligence and have a clear understanding of your exit strategy. Deal analysis, having the right people on your team to help you accomplish your objective and securing financing are all important aspects of any exit strategy that involves purchasing a property. Wholesaling is a strategy that can be supplemental to your primary exit strategy. For example, I run marketing campaigns and cherry pick the best deals to keep or flip. The rest of the leads are still valuable (and I spent money to get them) so instead of throwing them away I wholesale them to other investors which creates big chunks of cash I can earmark for other investment strategies.
Since you have more capital than time, consider partnering with an experienced investor who has more time and is in need of capital to purchase more properties. Obviously you'll have vet this person, but the right partnership can be advantageous to both sides. You can leverage someone else's time and experience and get a front row seat to the process. I've seen a lot of people make expensive mistakes on their first flips. Paying a contractor $50,000 up front and then having them disappear, never to be heard from again. Working with someone experienced can help you steer clear of the pitfalls you might not even know are there.
As for the wholesaling, you can market to find your own deals and wholesale the deals that aren't the right fit for you. For example, my last wholesale deal was a great deal but the house was an hour away from where I lived and I did not want to make that drive more than once or twice. So instead of keeping it, I sold it to a local investor who wanted to rehab it and rent it out. I took the $20,000 fee and put that towards a property closer to where I live that I decided to rehab.
- 3yAdam MaciasPro MemberReal Estate Consultant · Fort Collins, CO · Member since 2022 · 295 posts · 179 votes
Quote from @Don Konipol:
A wholesaler, as the term is currently used, or more accurately MISused in real estate, is essentially brokering property. There are some “twists” to it that may allow the wholesaler a greater, perhaps much greater profit than a licensed broker would earn by listing the property. The goal of the wholesaler is to convince a seller to allow him to tie up his property for no option fee and try to find a buyer at a higher price. The difference minus expenses is the wholesalers profit.Quote from @Pedro Garcia:
Hello All,
I am intrigued by the "art" of wholesaling and I am drawn to it, by reading, listening to all the strategies that I hear. It seems like a lot of work, but it is rewarded by a great level of satisfaction when it comes through. I understand it takes a lot of work which equals time. I have solid W2 income and no debt. Additionally I have saved capital to pay a down payment or two, or three depending on the amount and rehab, or leverage into a loan. The issue is that my W2 takes time, in a career that I like, but I would like to dive further into REI. I question if I am better of attempting Wholesaling , or if it just makes better dollar sense to find a good deal as a buyer and Rehab and Flip, or BRRR. Any opinions are appreciated.
Wholesaling under this definition is NOT investing. If you want to INVEST in real property you need to complete the purchase transaction with yourself on the buy side and you need to deploy capital in the purchase ( or utilize debt).
I’ll also content that fix n flip is not real estate investing either. Money invested in fix n flip, wholesaling, brokerage is money invested in a BUSINESS ( so happens to be a real estate related business),There's no such thing as "twists" or "convincing" with wholesaling. People are big boys and girls in the world and every wholesale deal I've done came with consequences if I didn't perform. The seller must agree to the deal just like they would with anybody else. My reputation, my earnest money and my credibility are all at risk every time I place a deal under contract and syndicate that for my partners I work with.
The biggest problem with agents is they believe wholesaling is brokering because we're supposedly "in the middle" but this is why it's important to understand contract law. Contract law would state assignability has nothing to do with being in the "middle" or brokering a deal. Terms matter. Definitions matters. Most importantly intention matters with contract law. I myself am putting my LLC on that contract and am the principle in the transaction and buyer of that deal. A real estate agent is not held under the same liability. - 3yAdam MaciasPro MemberReal Estate Consultant · Fort Collins, CO · Member since 2022 · 295 posts · 179 votes
Quote from @Jerryll Noorden:
While so many responses here are so negative, allow me to enlighten you with a bit of positivity. Let me crush some myths here.
Myth #1: Wholesaling Takes A Lot Of Work
ANY solid business takes a lot of work. Do you think flipping is not a lot of work? Do you really think starting a SAAS business is not a lot of work? How about starting a bakery, or a restaurant? Guys, calm down. Stop being negative. Stop hammering on wholesaling because you personally have a grudge against it. Just move along. This is the wholesaling forum. What are you doing here if you are just going to bash it? Now,
Wholesaling is "NOT" a lot of work. This is not an opinion, this is a fact. I am completely removed from any work so NO ONE can tell me this is not true. Anyone that says that it is a lot of work simply is doing it in a way that it is a lot of work FOR THEM. (they are doing it wrong)
Myth #2: Wholesaling is not "real estate investing"
Who cares what it is called or not called? It makes money and that is what we all care about. Not the fact of whether or not someone can call me a "Real Estate Investor". I am not doing it to be called a "Real Estate Investor". I am doing it because it allows me to eat crab legs every night. It allows me to go to Thailand and eat crispy chicken skin as often as my heart desires.
If you are having a hard time wholesaling, I can help you fix it right here, right now... but you have to let go of everything all these gurus (or these replies here for that matter). Unlearn everything you think you know.
Here is the formula for wholesaling success:
Wholesaling successfully depends on your ability to find motivated seller leads.
So anyone that claims it is hard, should be asked: "well. HOW are you generating your leads?" Right?
Cold calling = work + time+ and money... FOREVER! As in, you stop putting in the time money, and effort and your deal flow stops (= stupid). = BAD quality leads. (Deal) Conversion rate less than 3%
Driving For Dollars = work + time+ and money... FOREVER! As in, you stop putting in the time money, and effort and your deal flow stops (= stupid). = BAD quality leads. (Deal) Conversion rate less than 3%
Door Knocking = work + time+ and money... FOREVER! As in, you stop putting in the time money, and effort and your deal flow stops (= stupid). = BAD quality leads. (Deal) Conversion rate less than 3%
DMM = work + time+ and money... FOREVER! As in, you stop putting in the time money, and effort, your deal flow stops (= stupid). = BAD quality leads. (Deal) Conversion rate less than 3%
Text Blasting = work + time+ and money... FOREVER! As in, you stop putting in the time money, and effort, your deal flow stops (= stupid).= BAD quality leads. (Deal) Conversion rate less than 3%etc. etc.
It is hard because those methods you use to generate leads, (what your success as a wholesaler depends on) is less than 3%!!
Gang... why are any of you surprised you find it "hard"? This is data. Numbers, logic, common sense. ALL this info I mentioned here is not new to you?! You KNOW this. You simply choose to ignore it and expect that somehow the laws of the universe, data, and experience, don't apply to you, and think that by doing the exact same thing everyone is doing, that is NOT working, somehow it will work for you, just because you are you...Wholesaling is not hard. Wholesaling the wrong way is hard! Get it?
It is all about lead generation:
How can wholesaling possibly be hard when 4 to 12 motivated sellers contact you every single day begging you to make them a cash offer? Yes this is what I deal with. I spend no money no effort, no nothing and people find me and ask me to make them an offer. Do it the right way and it is easy!
Now allow me to help anyone willing to listen, and that has a bit of common sense.You want to start wholesaling yes? You want to start a business.
OK Do you have a website? I mean a REALLY awesome good website. Do you have your own pictures on your site? Do you have a stand-alone blog? A pimped-out Facebook business account? Linked in account? A solid Youtube account where you actually provide value? Educate the masses and give value? Did you spend significant time and effort investing in you? Are you working on a positive image online? Are you credible, do you look like sound, taste, and act like an actual professional business?
OR..
Did you just jump in driving for dollars, cold calling, and texting? Did you choose the lazy route and believe what you WANT to believe? Oh I know "your" type. The gurus tell you that you can become a millionaire with NO MONEY AND NO CREDIT right? And this sounds SOOO amazing, you simply ignore all common sense and CHOOSE to believe it with your core! How many of you started calling, driving, bandit signing, texting, without taking a good look at yourself and your business and taking a genuine evaluation and realizing that I (as in you) wouldn't do business with you, so then why would others? Many many many of you did this. And.. many many many of you say it is hard to whoelsaling. Coincidence? I think not!
Business 101. People will not do business with you if they can't trust you. Now.. why would ANYONE trust a person that relentlessly and desperately calls, texts or DMMs someone without a SHRED of evidence of credibility?
If you want to start wholesaling or start any business for that matter. SET UP FIRST.
Look like a business before you spend money time and effort trying to get leads. Why do you think it is so hard to get leads? Stop listening to other people and use your own intelligence, because I PROMISE you, 90% of the people here are absolutely not qualified to give anyone any advice. ANYONE that tells you to drive for dollars, cold calling or texting, instead of asking you if you have a positive image online set up, honestly shouldn't be giving ANYONE any advice.
Now, as we are talking about credibility, let me show you I am not just all talk.
Apply what I preach.
I started with building a reputation. and a web presence. I made sure I looked credible. Even if you are just starting out with zero reviews .. it doesn't matter. Look sound act taste smell the part... and you will be fine.
Then I realized immediately that success REALLY does depend on your ability to find motivated seller leads.
Sadly, there doesn't exist a way to find motivated sellers. DOES NOT EXIST. The sooner you accept this the sooner you can do things that actually work.
So how can you get in touch with motivated sellers?
Easy!
YOU have to make it extremely easy for them to find you.
Yup, either rank #1 on Google (which is what I decided to invest all my time and effort in when I started) or do paid ads like Youtube, Facebook, Instagram TikTok etc. etc.
As I said, I did SEO.. I ranked my site #1 on Google.
Gang, I ranked my website #1 myself, for free. You can do it for free. Watch my Biggerpockets conference video for a primer how to do it yourself.
And lastly, here is what YOU can accomplish when you start actually thinking instead of blindly following what everyone else tells you to do.
Good luck everyone!
And PLEASE stop listening to these nay-sayers!! Its ridiculous!! Not because THEY can't does it mean you can't either!
Thanks so much for this. I absolutely agree and this post was a breath of fresh air!
- 3yAdam MaciasPro MemberReal Estate Consultant · Fort Collins, CO · Member since 2022 · 295 posts · 179 votesIt depends on your goals. As a wholesaler, it's best to get chunks of cash in asap before you worry about cash flow. What makes more sense starting out in my opinion because wholesaling teaches you how to structure deals, underwrite, comp and everything about what a deal actually looks like because you have investor buyers telling you what they want. If you can wholesale deals, you have control of the market. The #1 complaint I hear most is people having a hard time finding deals. If you just focus your efforts on marketing and sales which is 90% of wholesaling then you mastered the #1 problem everyone struggles with.
Quote from @Pedro Garcia:
Hello All,
I am intrigued by the "art" of wholesaling and I am drawn to it, by reading, listening to all the strategies that I hear. It seems like a lot of work, but it is rewarded by a great level of satisfaction when it comes through. I understand it takes a lot of work which equals time. I have solid W2 income and no debt. Additionally I have saved capital to pay a down payment or two, or three depending on the amount and rehab, or leverage into a loan. The issue is that my W2 takes time, in a career that I like, but I would like to dive further into REI. I question if I am better of attempting Wholesaling , or if it just makes better dollar sense to find a good deal as a buyer and Rehab and Flip, or BRRR. Any opinions are appreciated.
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