New to wholesaling

26 Replies

Ok, as a REInvestor I have dealt with wholesalers in the past (mid to late 90's)when I have done this before, but have never actually done wholesaling myself. Sydney Chase highly recommended it for me to get back into Real Estate Investments and build up my cash flow, which I think is a very good idea seeing what I make at 7-Eleven (10 cents above minimum wage) is not enough to even save to buy a small parcel of land let alone a house (or a Mobile Home). When I did this before I actually had a Real Estate License and know how to generate my comps to get a close to accurate price of what a house is worth. As far as repairs that needs to be done I have a General Contractor who can help me with that, all I can do is Gyp, Hang Drywall, Deck and Paint, all the other stuff is an altogether another beast for me. So basically what I need to know is how does one learn how to Wholesale and sell the contracts to other investors when everyone here (I have looked at all the other posts including the sticky, to see the negativity about wholesalers) has had bad dealings with wholesalers? I do not wish to be on the bad side of anyone including all you wonderful people here who have helped out lots of newbies :-) ,I have seen topics about using Bandit Signs and as I have told Sydney, Bandit signs I am uncomfortable with especially since I was in one area (and this is just one area alone)I have counted 15 different Bandit Signs in one spot all with different phone numbers which tells me that a lot of wholesalers are vieing for one area, and there is another wholesaler who really play the numbers and that one has more money because he/they are actually using Billboards to advertise "We Buy Ugly Houses.com" which costs way more then Bandit Signs (and those won't get taken down lol by the Bandit Sign Police lol). So How do I learn how to Wholesale, what books do I need to read or download (Free is better if I can get it) Podcasts to listen to, etc. Please steer me in the right direction. Thank you, and Thank you @Sydney Chase for your valuable time to talk to me.

@Richard Gaston Start with the Beginners Ultimate guide to real estate investing in the learn drop down tab (free) Listen to all the 68 podcast (free), check out all the forums and build relationships, hot your local REIA meetings. You have to crawl before you walk.

@Christopher Hunter I know amigo, that is why I am asking for a walker lol (old man joke here, I am 55 wife says I need a walker lmao) That basically is why I was asking for assistance, to be steered in the right direction. Seeing I have basically done this in the late 90's and everything has changed since then I basically need to unlearn everything I knew then and relearn everything now (2014), different game, different rules. And thanks for the info about the podcasts, already downloaded the e-book from here. Waiting on REIA meetings that are more closer to home, I don't have a car (yet) and hopefully they are early enough I can take a bus to them and come home. The buses here shut down at certain hours and I sure hate missing the last bus home and being to far to walk lol....

First of all I would like to say that it is a great thought of yours. Secondly I would personally like to suggest that don't ever do investment on a blind strategy. Do a rigorous research and conclude each and every small things even in landing on a decision. I wish you all the very best for the new start.

@Robert Macklyn Thank you for the insight, as I said in my title, this is basically a new endeavor for me. Now if its ok if I can give an insight to the other newbies? I have had a Real Estate License which yes I went to school for it, as well as a degree in Business Management and another degree in Accounting/Bookkeeping. I won't brag where I worked at as a RE Agent but one thing I do know, if you're doing wholesaling in any given area Do Not Over Saturate the Market. Like any Real Estate or Business venture if you Over Saturate, the seller (customer) will look elsewhere instead of your business, as I said earlier just in one area actually in one spot I saw about 15 Bandit Signs all with different phone numbers, all basically saying the same thing, We Buy Ugly Houses, We Buy Houses/Fast Close, We Buy Houses/Close in 30 days or less, We Buy Houses/Cash Close etc. Now me even if I had started doing this sooner I would not put any Bandit sign where there are a lot of signs, or even one sign. Granted Competition is good for any business but when you have almost the same sign with almost the same theme or saying it deters the potential seller to looking elsewhere. IMHO is all I am saying :-) Thank you for letting me post this. While I am learning how to do wholesale I am also thinking of another way to get my message out without over saturating the market or I should say get me in front of the prospective seller to put the contract out as well as get the right info to get to the prospective buyer (the Real Estate Investor) to purchase the product.

Now I would like to ask one question which I am sure was asked and answered elsewhere here, but (and I am sure I maybe asking it wrong but I hope everyone will understand, I work a graveyard shift and sometimes I get a bit brain dead) What keeps the Investor from just buying the property outright without going through a Wholesaler, in other words the Wholesaler finds the property, gets it under contract, finds an Investor to purchase the contract, the Investor goes to the property but instead of buying the contract (which is anywhere from $2000 to $10,000 over the negotiated price between the wholesaler and the seller) just buys the property outright without paying the contracted price but the orginal price between the seller and the wholesaler? In essence saving themselves money, and making a larger profit margin.

@Richard Gaston

As others said you need to research and read on wholesaling. The steps to wholesaling are (and this could be in any order as people do things differently):

1. Learn RE principles and laws. You were a realtor so brush up on the current laws. I would also tie in speaking with an attorney and getting some sound contracts.

2. Learn wholesaling (or what tactics a wholesaler uses versus a realtor)

3. Research your farm area (where is your focus area)

4. Attend Local Meetups and REIAS (network to learn and find out who is buying)

5. From the meetings you need to focus on finding a realtor for comps, someone who can help you estimate rehab costs, and a investor friendly title co. (get recommendations from other wholesalers).

6. Begin your campaign. (Bandits, driving, mailings, etc)

7. Have a system set up to take the calls and respond promptly.

8. Once you get a lead, evaluate the area, and then if it meets the initial evaluation schedule an appointment to see the property to get pictures and estimates.

9. Run the numbers. (Determine the max allowable offer)

10. For some they are able to get a contract signed on the spot. This depends on you.

11. Have the seller sign your contract to Purchase. (This gives you equitable interest and the end-buyer cannot go around you).

12. Having the signed contract allows you to either assign the contract, purchase with your own funds, or use transactional funding for a double close situation.

13. Market the deal to a network or buyers, post the deal, etc.

14. Go to closing.

This is not all encompassing it is just a quick scenario to get you thinking. Once you read over you may realize that "hey" I do not understand this or that and then you can narrow your questions down and be more specific. Some tell sellers that they are wholesalers and others do not. This depends on you.

@Tyrus Shivers Thanks for the info looks very valuable :-) I have already did some research mainly on the Laws here, like for instance as a Real Estate Investor that does fix and flips I need a General Contractors License, Insurance and be Bonded even if I don't do the work I still need it, no problem. My one main concern is getting operating capital to run the business, that is where Sydney recommended I do wholesaling which is new for me, ok so I need to learn, find my farm area, figure out how to advertise without oversaturating the market, get an Attorney, get a title company that does double closings, already downloaded some decent contracts but just in case I will check with an Attorney to make sure they are legal for this State. Now I have another question, I have seen about doing wholesaling on the internet (in other words in another State) How does one do that while being on the internet when you can not go to the closing table? I am sorry if I am asking a lot of questions here.

@Richard Gaston Learn your backyard. I lived in Tacoma and Federal Way before moving down to California. There is a meeting at the Old Spaghetti Factory and the Poodle Dog in Fife. Both are on the bus line and should be fairly easy to get to. Reeducate yourself, get to know Tacoma again and where people are wanting to live, Northend, Fircrest, University Place and get to know values in those areas you want to be in. If there is any way I can help just let me know.

@Christopher Hunter Thanks, there has been alot of work being done in Tacoma so I am not sure if the Spaghetti Factory is still there, but I can always check it out, my wife and I had ate there one time before but that was about 14 years ago lol. I got a message about a Meetup but its in Bellevue and for me that is a bit to far :) I never heard of the Poodle Dog but I will check it out. I have been looking around the area, like University Place for instance, I am looking at the prices and what is avaiable in any area, just getting a feel of the Land so to speak. I also have found a lot of boarded up properties here in Lakewood as well as Tacoma on 72nd Street, lots of boarded up houses just on the bus route alone so I am looking to see if I can find the owners to see if I can get at least some of those houses on contract to sell to Investors once I get the numbers, these houses I have seen really need some TLC, lots of it. But they look like good investment properties judging from the surrounding area.

@Richard Gaston

In order to wholesale in another state you need the same team as I mentioned above to be in that state, as well as someone you can trust to go out and see the properties and report back the findings. All of the people who say "i wholesale in my living room and never see a house" leave out the fact that they have assembled a team or JV with other wholesalers they may have met here or somewhere else in order to get that done. In the age of computers you can sign documents over the internet and have them emailed or faxed to the title co for closing. It is always necessary you be present. In Alabama I have someone attend closings in my interest if it is needed. However I have a strong team there and a great attorney.

@Richard Gaston Check out your local title company and see if you can get a list of recent cash sold properties in the last 6 months. Also you might be able to use a resource page they might have to look up title information on these properties you are referring to. You can go www.piercecountywa.com, then go to the left hand side of the page under help center, click parcel and sales search

@Tyrus Shivers & @Christopher Hunter Thanks guys your advice is well noted and taken which I will value highly, I was also thinking of a website as well for getting info, granted the info will cost me money but from what I understand I can get tons of info on homeowners as well as vacant home owners. Seeing what the rules are here I won't put the link down without getting in trouble which I don't wish to do :) Don't wish to violate any rules even unintentionally. But all the insights I have been getting from here, it rocks and I feel I am learning a lot, don't mind me I have my headset on and listening to BP's Podcast right now lol....

@Richard Gaston Are you referring to lead generation? Listsource.com, Agentpro247.com is another source. You can go to the county city building downtown and pull the list for your area and it might be less expensive.

@Christopher Hunter I was thinking of Listsource.com it was highly recommended seeing that I have found a LOT of empty and boarded up properties in order to find out who the owner is as well as get their addresses for mailers, in order to generate leads. Its costly yes I expect that but its better then going to all the courthouses in my area (Lakewood, Tacoma, etc) and less time consuming in the long run. :) I may want to start small, cheaper that way but still less time consuming

@Richard Gaston Well then you will need to leverage some relationships to help you. Have the address and call the assessors office and see if they can tell you some information on the property. Can a title company and ask them to do the same thing. Check and see if you have some local meetings in the Lakewood area. Meetup.com

@Christopher Hunter Thanks mate I will do that, and way ahead of ya on the meetups been keeping an eye on it, heck I get an email telling me when the next one comes up, read it to see if its here in Lakewood or Tacoma :)

Not yet, haven't had the chance lately. Been having medical issues, allergies ugh, and Bronchial Asthma so I need to get my meds, just waiting on the Doctors office to fax the refills to the Pharmacy so I can breath again lol. But now that you mentioned it I can check online here to see if the Spaghetti Factory is still open and see if they still have meetings there for the REIA, and what Days Inn??? And where???

@Christopher Hunter Never mind, when it rains it pours. Seeing I work some strange hours (Graveyard shift) I take naps either during the day or sometimes at night, wake up at night too lol. I feel like a vampire lmao. I had a PM from another member about a meeting he is sponsering, well I got his invite about the online meeting, as well as 3 REIA Meetings here in Washington, two in Seattle (to far) but the third one is basically here in Lakewood/Tacoma area at the La Quintan Inn and Suites on E. 27th Street, I just need to googlemap that to see exactly where its at because I don't remember a La Quintan Inn downtown Tacoma, but I do know there is one not to far from where I live, but I thought that was Steele Street hmmm oh well I got until June 19 to find it, and even put that in my Google Calender to remind me so I won't forget lmao.....

Go to flip2freedom.com or check out Sean Terry's podcast called flip2freedom on iTunes. Even comes with a free downloadable book. Teaches you everything you need to know about wholesaling ????

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Go to flip2freedom.com or check out Sean Terry's podcast called flip2freedom on iTunes. Even comes with a free downloadable book. Teaches you everything you need to know about wholesaling :)

Go to flip2freedom.com or check out Sean Terry's podcast called flip2freedom on iTunes. Even comes with a free downloadable book. Teaches you everything you need to know about wholesaling

This post has been removed.

@Spencer Shortland No problems amigo I figured that it was either an #1 An Accident or #2 You were trying to spam Flip2Freedom lol I am already ahead of you amigo, I am just now listening to the new BP Podcast that has just been posted (still listening to it right now) but while I am listening, I am chatting you up as well as downloading some more Podcasts both from BP as well as Flip2Freedom, found a couple of goodies that looked good so am downloading it while my wife is giving me a funny look because she wants a cup of coffee lol, the good thing about listening to a podcast is I can pause it when I need to take a small break, mostly to get another cup of coffee lol....

And here I thought I was the only vampire around seeing its now 1:27am here (which seeing you're in California its the same time, I am assuming you're in California seeing the bar at the top of the message you sent me, Torrence, CA lol).

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