Wholesale 101....Brain Surgery... or just not connecting the dots

6 Replies

I attended local networking event on Wholesale 101 last night. A very good networking event in my opinion, the presenters appear to be very knowledgeable and all on top of their games. They offered great ideas and tips on how to get started on Wholesaling, i.e. Where to find deals; buy cheap, focus on the buyers, the importance of marketing etc...  etc...... 

The event was very informative and the presenters made the Wholesaling process appear very easy, probably to get everyone motivated.

The problem for me however, is that while I do get the concept, there is still a disconnect between what I think I know and what it takes to do a deal.  Even after this “Anatomy of Wholesale” event, the process still feels like brain surgery, I am not just connecting the dots.   My gut tells me that we have not even began to scratch the surface in this two hour session let alone be ready for deals, yet that is how most of these guys presumably got started.  I suspect that some of the other attendees in the room felt the same way as I did but just wouldn't say because ta presenter mentioned a couple times in the presentation that one can actually start putting a deal together right away and was even willing to add people to his  list.

Of course, I am still going to do more research, however I’d like to start with the best brains in the business.

My questions to all of you veterans in the business are as follows::

Is wholesaling as easy as it seems?

What does it really takes to start?

How was your experience getting started? What would you have done differently and;

What are the critical success factors or pitfalls in wholesaling?

Thank you for sharing.

Hi @Remy Balogun  

You can make wholesaling or anything in RE as simple or as complicated as you would like it to be. Your questions are very broad and you will get better responses and it will be better for your understanding also if you laid out what you understand about wholesaling and the more experienced members can fill in the blanks.

You will get much better answers to specific questions.

Good luck!!

Okay, while I do not consider myself a veteran of wholesaling... I do know what it takes to get started. I feel for you as well, cause I had similar feelings about beginning in wholesaling. Remember this, wholesaling is SIMPLE, but NOT easy. Whats this mean? It means that the concept of wholesaling is very basic and easily understood, but being successful and effective in the niche is not something everyone can do.

Is it easy to send out letters? (yes)
Is it easy to track leads? (not for everyone)
Is it easy to return calls? (not for everyone)
how about negotiating with sellers and buyers? (not for everyone)

These are just a few things encountered with wholesaling, yet I know for a fact that not EVERYONE can do those things like the gurus say. Some people can't get over the fear of calling people, some people lack the negotioation skills which is a MUST HAVE in this business. If you have a fobia of talking with strangers and building a relationship on the spot then wholesaling isn't going to be easy at all. Sorry but that's the truth. You here the gurus say "oh just get over your fears" or "if you want it bad enough then you'll do it and succeed" Everyone who starts will at some point fall into those qoutes from the gurus. There will be SOMETHING that just isn't easy for you to do. Just push past it though. Even if you stumble and fall along the way to your first deal then guess what, you'll be just that much more knowledgeable for your next deal!

Sorry I rambled a bit. Hope this was helpful!

Thank you @ Sharad M. my questions were broad probably because I am still so green at this and don't even know where to begin.

My concept of wholesale at this point is that you find good deals, place them on contract and then flip them to other investors without actually taking ownership of the properties.  Of course their are some marketing activities in between.  I may be over-thinking this, but I just assumed that you have to have some type of base before you jumping out there looking for deals.  Again, just trying to learn from what others have done in the past and the how to's.

@Brand Kargol, thank you for the insights, this is the kind of information that I was looking for.  It will be helpful in determining if this is a viable niche for me. Thanks again!

Originally posted by @Remy Balogun:

Thank you @ Sharad M. my questions were broad probably because I am still so green at this and don't even know where to begin.

My concept of wholesale at this point is that you find good deals, place them on contract and then flip them to other investors without actually taking ownership of the properties.  Of course their are some marketing activities in between.  I may be over-thinking this, but I just assumed that you have to have some type of base before you jumping out there looking for deals.  Again, just trying to learn from what others have done in the past and the how to's.

@Brand Kargol, thank you for the insights, this is the kind of information that I was looking for.  It will be helpful in determining if this is a viable niche for me. Thanks again!

Marketing is a huge part of wholesaling. Without leads you have no business. 

 Here's the concept of wholesaling... Tie up a distressed property at an agreed price and then flip the contract to an end buyer at a higher price. SO SIMPLE. But not easy.

As far as finding out what niche best suits you here's some questions for you. These can be personal questions so you dont have to answer on here. It's more food for thought.

Whats your reason for choosing real estate?
What's your short and long term financial goals?
Are you looking to run a business (wholesaling) or are you looking for more a a risidual income from rentals?

@Remy Balogun   The hardest part for me was dealing with people not understanding what the hell I was trying to do, and thinking it was some kind of scam or rip-off. People in the northeast are very paranoid and cautious in general. YRMV.

Some wholesalers avoid this issue by not really explaining what they are doing to the property owner, and more or less allowing them to believe that the wholesaler is simply going to buy the property themself. However, when you get to the closing table and they figure out what you did, and see that nice big difference between what you paid them and what you just re-sold their property for, they may just flip the hell out.

I didn't want to be deceptive so I was up front with property owners. But I basically figured out that in order to do it successfully in my area, you would need to let them believe you are going to buy the property yourself and then deal with the fallout at closing. I didn't want to be deceptive and I didn't want to be stressed out dealing with drama at closing, so I just gave up on the whole idea of wholesaling and shifted toward other areas of REI.

@Corey Demuth, thanks for that insight, I can understand why a home owner would flip at being kept in the dark on certain aspect of the transaction.  I will definitely keep this at the back of my mind.  Great insight!. Thanks.

@Brandon Kargol,  to answer your specific questions:

Whats your reason for choosing real estate?

I am already a buy and hold investor, and have been managing my business for several years.  I recently stopped working now looking to learn about other areas of Real Estate to generate the extra income rather than dipping into my rental cash flow.  Wholesale appears to be the least complicated area by far.


What's your short and long term financial goals?

Short term : diversify into Wholesaling to help mitigate my lost income and also provide more flexibility with my time 

Long Term:  Continue building wealth and cash flow by gradually increasing our rentals properties with clear titles and using leverage where possible.

Are you looking to run a business (wholesaling) or are you looking for more a a risidual income from rentals?

I am already running a rental business; we buy foreclosures or distressed properties in class B or C areas, fix them up for rental and then re-finance to cash out and then do it all over again.  So far, I have re-invested 100% back into the business because I had my primary source of income.   Going foward however, depending on my successes with wholesale, it may well be another of focus for my company

I hope these answer your questions.

Thanks again for asking.

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