I'm fairly new to this website and to real estate investing/marketing in general. I've spent a good amount of time pouring through this site and other manuals, seminars, and mentor trainings. I'd like to go ahead and get started with marketing for wholesale deals. I'm finding that many advise to use bandit signs, which I just found out are illegal. I also find a lot of mentors advise using squeeze pages to capture leads, and these really seem a bit shady to me.
My question: What's the downsdie to marketing yourself as a real estate marketer for wholesale deals? I'm imagining marketing to distressed or otherwise motivated sellers to help them find a buyer at no cost to them, so long as they agree to contract with me for my price for a certain period of time (couple weeks). If I were a home buyer, I'd like the idea of someone helping me find a home buyer, especially if I didn't need to pay them myself. Then I find a buyer, assign the contract, and close the deal.
Any feedback or suggestions?
@Tish Thorpe welcome to the site.
Hi @Tish Thorpe !
The most important financial investment you can make as a new investor is right here.
Do you have investors yet?
How will you determine what a good deal is for an investor?
It sounds like you want to put sellers of real estate together with buyers of real estate without putting your own capital at risk. Is that right? That's called real estate brokerage. Real estate brokerage requires a license.
Have you looked into getting a real estate agent's license in your area?
Why would a seller want to promise you a contract price for two weeks?
What is your budget of time and money to dedicate to this effort?
Good luck and think hard about the best way to use your time and money as you move forward!
Your points are well taken Tom. I really appreciate the feedback. I clearly have a long way to go before I'm ready to begin wholesaling.
To answer your questions:
No, I do not have any investors lined up yet, but I intended to focus more on marketing to build a list of them.
I'm admittedly still learning how to determine what's a good deal, and I'm working with a mentor who has agreed to help me analyze my first few deals for a small, flat fee.
I have little capital to risk, so I'm definitely looking for an option that won't require huge cash outlays. I'm also still working a full-time job. I agree, what I described as marketing is exactly real estate brokerage. Duhh. I think I got beside myself since I was looking for the best option given my lifestyle today.
My time would be early mornings, weekends, and evenings to work around my fulltime job. My budget is a couple thousand dollars, which I've determined would be for marketing, business setup, and mentorship. So not much...
I ready your article about the financial preparations, and honestly that's what I was hoping to use assignment fees to cover...debt repayment; clearing student debt, and car loan payoff. I understand the burden of carrying too much debt as an investor, so I know I'm not quite there yet. I was really hoping to assign properties part time as a secondary form of income to prepare for future investment business.
@Tish Thorpe I think you are smart to think creatively about how to change your financial circumstances.
I have only been following biggerpockets for a couple of weeks and I have been repeatedly surprised by how many people come to this site with exactly your plan - wholesaling to build up some cash and then be investors.
I am sure some people have done it (starting careers through wholesaling) successfully. I just think that wholesaling is a very tough way to make money for someone who is starting out. Without experience or capital, you had better be really good at making people trust and like you and you had better be careful not to cross any legal lines you might not even know you are crossing.
Keep the long view in mind. Keep attacking your debts and keep improving your personal finances. Just don't get discouraged if wholesaling doesn't work for you. Do the little things to help pay down your debts and keep learning. Don't dump a bunch of money into bandit signs or guru courses or mailers if you could be paying off your other debts instead.
Thanks @Tom V. for the solid advice.
Hi Tish -
I'm pretty new to Bigger Pockets too; but here are some things I found very helpful. First I suggest reading Bigger Pockets "Ultimate guide for beginning investors" ... click on the "Learn Tab". The guide answered a lot of my questions, reaffirmed the direction I wanted to go, and gave me more inspiration than I already had ( which was a lot ).
Next check out these books: Cash Flow Quadrant by Robert Kiyosaki, Inc. & Grow Rich by C.W. Allen (this will give you something to plan for in the future) and my favorite "Life Changing Book" ... Thick Face: Black Heart by Chin-Ning Chu .
Good Luck = ( when prepardness meets opportunity)
Welcome. Fill in 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 over 70 past ones to catch up on.
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 rehabbers (cash buyers).
Two Great reads, I bought both J. Scott The Book on Flipping Houses,The Book on Estimating ReHab Costshttp://www.biggerpockets.com/flippingbook
Couple good reads
- 9 Reasons You Couldn't Find A Buyer For Your Wholesale Deal
- Don't Start Wholesaling Until You Read This: Wholesale Advice from a Fix and Flipper
- How to Start Wholesaling: Getting Past The Education and Into the Field
Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over
Thanks Paul. I'm well on my way. I really appreciate the guidance.
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