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Wholesaling
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Hello BP world!

Nathan Paterson
Savannah, GA · Member since 2014 · 9 posts · 2 votes

Hello BP members of RE community. My name is Nathan Paterson, and I am an active duty special operations military member currently transitioning out of the army through the long and dreadful med board process. Due to an injury that occurred overseas, my career options are limited as I head into the civilian work force. I Came across a wholesaling book after deciding to go into the real estate business with my father in law who used to have a very successful construction company. Our original plan was to flip and build, but after reading about wholesaling, it seems like a better option for me and possibly him as well (given his age).

We already own a home here at my duty station (Savannah, GA), and have a very special friend who is a real estate agent ( my bestfriend's mom--- she is a gold star mom now, sadly).

As I begin on this wholesaling venture, I realize my wife is understandably skeptical and worried at the potential return. Does anyone have any experience in the savannah, ga or surrounding markets? I see many guru's marketing it similarly to a get rich (relatively) quick scheme, but I realize that it will take loads of hard work and effort. I'm not exactly sure where to start or if I truly need a coach. I read Andrew massaro's book where he strongly suggests getting a coach, himself preferably. Does anyone have any experience or knowledge about Andrew Massaro? He charges about $3.5K plus 50% of the profits while in his 12 week program. Obviously at this point in my life, every dollar counts, especially when potentially starting my own business.

Also, is wholesaling a dying industry? Is there still potential to be successful in it? What would my first steps be?

I'm very excited about this and truly feel that God has pointed me in this direction. I'm a hard worker with a strong desire to succeed; I simply cannot allow myself to fail.

I just wanted to introduce myself to the community here and get some advice. Any tips, words of wisdom or caution are truly appreciated. Also, any book recommendations are accepted as well; I'm engrossing myself I'm marketing and real estate wholesaling/ investing books.

Thanks,

Nate

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Brian Gibbons
Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
12y

Hi @Nathan Paterson

First thing in real estate, "Trust in god, but lock your car." Meaning there are pitfalls.

Second thing it is a people business. Learn sales and negotiation. Dale Carnegie stuff.

I would recc these actions and thoughts.

Look up @Curt Smith in GA. He's awesome.

Secondly, read @Ned Carey s post

http://www.biggerpockets.com/blogs/3225/blog_posts/26426-how-do-i-find-a-mentor

Thirdly, understand wholesaling takes time and money for marketing.

Birdogging is cheap and takes time.

Lease Options and Sub2 are faster, for thin equity deals.

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  • Brian Gibbons
    Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
    12y

    Hi @Nathan Paterson

    First thing in real estate, "Trust in god, but lock your car." Meaning there are pitfalls.

    Second thing it is a people business. Learn sales and negotiation. Dale Carnegie stuff.

    I would recc these actions and thoughts.

    Look up @Curt Smith in GA. He's awesome.

    Secondly, read @Ned Carey s post

    http://www.biggerpockets.com/blogs/3225/blog_posts/26426-how-do-i-find-a-mentor

    Thirdly, understand wholesaling takes time and money for marketing.

    Birdogging is cheap and takes time.

    Lease Options and Sub2 are faster, for thin equity deals.

    2Reply
  • Curt Smith
    Rental Property Investor · Clarkston, GA · Member since 2012 · 2k+ posts · 1k+ votes
    12y

    Thanks Brian!

    Nathan every student needs several classrooms to learn in. One on line like biggerpockets but another is at Savannah's local REIAs where you'll meet friends who will give free advice an buyers who you might bird dog for to get started.

    I've bought many low priced systems. One of the best values is:

    (google it) property umbrella blue print

    I see the author of that system has a blog with free content: Jamel Gibbs

    Another all included system is bank elimination blue print but its a bit more. No one becomes successful I feel without spending a few years of time and some amount of money on education. Brian has a good tip re marketing for low equity deals and taking title via a subject-2 purchase or long term lease option vs trying to jump into wholesaling where you'll need extra ordinary skills at negotiating sellers into selling their property for about 50% of what zillow says it's worth (assuming it needs repairs).

    Good luck!!

    0Reply
  • Nathan Paterson
    OP
    Savannah, GA · Member since 2014 · 9 posts · 2 votes
    12y

    @curt smith and @brian gibbons

    Thank you both for your reply, I appreciate the response. Curt, I'll check out those systems. I am going to our local REIA meeting tomorrow evening and a seminar on Thursday of this week. Any advice before I head into the meeting? Should I prepare a list of questions to have mentally stored beforehand, or should I just focus on networking? Any tips for successful marketing? Should I be looking mostly for buyers and learn what they are looking for?

    Brian--- that's a great saying. I'll definitely be looking my car! I do understand that this is NOT an easy field. I'm just hoping that it's still viable.

    I'm still learning the terminology here as well.... I truly am a newbie.

    0Reply
  • Brian Gibbons
    Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
    12y

    https://www.dropbox.com/s/6qntdek1df13mdl/Glossary.txt

    theres several hundred terms there.

    Get this dictionary

    http://www.amazon.com/Dictionary-Estate-Terms-Barrons-Guides/dp/0812096606

    Its on ,my desk.

    If you cant find-understand a term or concept, ask @Bill Gulley

    1Reply
  • Paul Timmins
    Specialist · Rockland, MA · Member since 2010 · 7k+ posts · 2k+ votes
    12y

    @Nathan Paterson

    Welcome. Thanks for your service. Time to build the foundation below.

    Check out the Start Here page http://www.biggerpockets.com/starthere

    Check out BiggerPockets Ultimate Beginner's Guide - A fantastic free book that walks through many of the key topics of real estate investing.

    Check out the free BiggerPockets Podcast - A weekly podcast with interviews and a ton of great advice. And you get the benefit of having 60 past ones to catch up on.

    Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook

    Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and all the cash buyers (rehabbers) you will need.

    You might consider Niche or Specialized Housing like student housing. Rents can be 2-4 times more. Remember you don't have to own a property to control it.

    Good luck

    Paul

    0Reply
  • Bill Gulley
    Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
    12y

    Nate, IMO, if anyone charges more than $500 for any seminar, boot camp or other materials dealing with any investor type matters discussed here on BP, they are scamming you. All of this stuff is elementary, there is noting advanced, there are no secrets and all of it comes from basic real estate concepts. More if food and lodging is included or other activities that have a reasonable cost to them.

    The RE industry is a closely held trade or profession, has been since the inception of the sales side of the industry. By closely held I mean that it's much like a trade, being a welder or painter or a musician. You can't really advance quickly without having a big brother or sister, a mentor or someone who takes you under their wing. Much like a union type job where you begin as an understudy being supervised by a master tradesman before you can advance, but not really that way as you can advance on your own.

    It is rather traditional in the industry that new people get with a seasoned individual and as compensation for the mentoring, the student splits profits or commissions. Often, in a real estate company, new agents are assigned to seasoned agents, brokers do this for two real reasons, first it limits the broker's liability in allowing going out in public and screwing up, the other is that it gets the newbie started making some money off the bat.

    I have had mentors in my life, but never did I split any deal to learn some aspect, not even as an agent/broker. My mentors were teachers, friends, attorneys, Realtors, engineers, appraisers, title examiners or others with specialized knowledge. Trick is, you can't hang on to someone and just bug them for knowledge picking their brain to death. Take tid-bits and advice. Many will give that type of advice away for nothing without any obligation, but if you take up their time you should be paying them in some manner.

    There are some that simply feed off newbies too. They are usually not the best mentors, they may teach you but they are also charging you, in some cases thousands of dollars over time by splitting profits and they don't teach you all they know, nor do they teach very quickly as the longer it takes doing more deals, the more they make. IMO, much of that may be needed for some folks, some can't ever go out on their own. If they choose to just do deals in a partnership-mentor relationship forever they are probably making at least something they couldn't make otherwise. Not everyone is cut out to be a brain surgeon or a scientist or a teacher or a real estate operator, not everyone can run a backhoe either. So, there are many who's business is just working with newbies. Search for a thread here "how to find a mentor" that's close to the title.

    Not saying stay clear of professional mentors, just realize the cost, the time, the actual areas taught and real benefits to you.

    You also need to be very careful who you hook up with. Experience and knowledge are two different things. You can find people in RE that have been around for 30 years and what they do can be a disaster. Many are predatory dealers, they have no clue as to applicable laws, they don't keep up with changes and their advice can spell trouble. Knowledge alone won't get you anywhere, many who teach can't do. You need a mentor who has both. Gurus claim both, Beware of hot shots, those that act as if they are experts, they talk strategies and sell sizzle talk about money as a motivator and their success.

    Don't know how you got my rant with that title, I doubt many will be reading this as it's an introduction, not specific to the content of the thread, but you got it anyway. LOL

    And yes, I have 201,208 brain cells dedicated to definitions and to their application in RE :)

    1Reply
  • Joe Fairless
    Investor · Cincinnati, OH · Member since 2013 · 2k+ posts · 1k+ votes
    12y

    @Nathan Paterson since you're beginning in wholesaling you might find this blog post very helpful. It tells you how to stand out from your competition:

    http://www.biggerpockets.com/blogs/4430/blog_posts/32194-attention-wholesalers-2-ways-to-stand-out-from-your-competition

    0Reply
  • Account Closed
    South Bend, IN · Member since 2014 · 318 posts · 156 votes
    12y

    @Nathan Paterson Welcome to BP and Thank You for your service.

    0Reply
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