No real way to start...

31 Replies

I'm assuming that there is no real way to start wholesaling except to jump right on in, get going, and make mistakes to learn from if any. I've tried to find a step by step method and also wanted to start off doing it the right way so I can build a solid foundation but it seems there is just no real way to get started. "Ain't nothin' to it, but to do it." 

A mentor would be nice right about now, but I'm just going to trust in the extensive amount of literature that I've read over the months and believe in myself. Any last words of wisdom or encouragement would be greatly appreciated. 

Signed,

Biting Nails in Chicago

As a dental hygienist, I recommend you stop biting your nails!  You can accidently cause recession of the gums ;-).  Words of wisdom from another newbie... check your numbers with each step of your process.  Keep your goal in mind at all times.  Be incessant and a go-getter.  Run your first deal by the people here in the forums.  Post the numbers and see what the general vote is.  

Whoa! Thanks for the heads up on the gums. LOL But that actually sounds like an awesome idea! I surely will post my numbers here!! This forum gives great feedback. So glad I found this. Thanks again @Kyle Denmark  Good luck to you and much success. 

Shante

Unless you really need to it’s never a good thing to go it alone. It will take you more time than necessary to learn why some of the things your doing don’t work. Many times you know you’re doing it right but until someone who’s been there tells you that you are, you’re always going to have doubts.

Don’t stop believing that you can do this. My group will soon be putting together a meetup group here in Chicago. Were going to do this a little different I think than the way meetups are organized. We are going to offer both newbie’s and veteran investors an opportunity to work with us by offering all of our resources to work their deals. More to come on this, stay tune.

In the mean time keep reading everything you can on wholesaling in BP. You will not be wasting your time. If you want to jump in by all means do it. If you find a property in Chicago that’s a good deal post it in the market place. Just remember to start slow and have all the pieces in place. BP will show you the steps. If you decide to join our meetup group, when that time comes, well help you from that point on.

Good Luck

David

Not much else to add but to start doing something, anything, to move forward. Whatever the next step you take is, make sure it's a true step forward and not busy work like researching websites or lists, perusing Craigslist or the MLS. Call someone. Knock on some doors. Make some offers. No busy work to avoid taking a real step.

I call the busy work we do to avoid the things we're scared of "preparing to prepare". Not sure if that makes sense to you but it reminds me that I'm avoiding the things I should actually be doing that make me nervous and push my comfort zone.

Something I've learned over the years and heard quoted in one way or another is, whatever you dread or fear doing the most at this moment is probably what you most need to be doing at this moment. 

You've got all the information you need right here on BP to be successful, it's up to you to take advantage of it, take action and move forward!

YESSSSSS^^^^^^ This^^^^^^ @Troy S.  your post has spoken to me this evening. I truly appreciate your spot on words. I swear it feels great to know that people understand. I surely will be taking this advice. Thanks again.

@Shante Harris  I know nothing about wholesaling but I saw this meetup event you might want to attend that is specific to wholesalers

http://www.meetup.com/Chicago-Real-Estate-Networki...

Also, our monthly meetup is the third Tuesday of the month in Norwood Park

http://www.meetup.com/Chicago-Real-Estate-Investor...

Medium second city real estate logo   white close upBrie Schmidt, Second City Real Estate | [email protected] | http://www.SecondCity-RE.com | IL Agent # 471.018287, WI Agent # 57846-90 | Podcast Guest on Show #132

Awesome @Brie Schmidt  . Is it okay if I save your email to my buyer's list in order to keep you updated on my future listings. You might find something worth accepting in the future. I would love to have you.

Shante and ALL new wholesalers.

Most of you have been mislead already.

Some of you are really needing to make some money.

Some of you may be disparate to make some money;

Most of you have no business experience, much less real estate experience.

Some of you have never had a profession or been exposed to the business world.

The business world can be a cold ruthless place.

Real estate is full of people trying to make a fast buck.

The easiest fast bucks are not really made, as in "earned" they are taken.

There are many in real estate that know a little bit and they see that it's easier to educate others, or partner with others who lack knowledge than it is doing anything else.

Some of these gurus or marketing types have found that selling a program or system or method is easier than real estate and such may not even relate to realities of what might be possible in a particular market area.

These teachers, are selling a product, not really teaching.

These people are also playing on your desperation, they do not care if you're broke, lost a job, have a sick mother or if you're eating or not. Have you ever heard of anyone selling information to ask you how your really are doing in your life, take any interest in you before they take your money? No, they don't.

They are selling dreams, not an education.

It's often due to your lack of education, life experiences, specific real estate knowledge that allows them to sell you on ideas of making money that allows them to be successful.

The other thing is that they pitch hype, about real estate being simple, easy, that anyone can do it, anyone can learn. The reason they say that is to widen the market to sell what they do.

If you were told, just as an example,  that only people who have good credit, $50,000 in their pocket, who has two years of college or an education in business and has an IQ over 120, how many customers do you think they would have? My example is extreme, but to make a point.

Some will tell you real estate can be done in a step by step approach, that plays to the simplicity of the business. Yes, there can be steps, like find, buy, hold, resell, but within each of those or any other steps suggested, taking those steps requires much more knowledge than you are being given.

And, they don't care, it's not about your success, it's about their success.

If you think you're going to find some real estate type selling such information that cares about your success as much as your 8th grade math teacher did, you're mistaken, I'm sure. You're not some naïve 8th grader anymore.

You also need to look at reality. Real estate is no different than other business ventures basically. You must be delusional if you think a regulated industry would be simple, like learning to push widgets down an assembly line and get paid for just turning a screw and closing a lid on some contraption.

Another aspect is that many of you are just lazy, you want to believe there isn't much more knowledge required because you aren't willing to study hard enough to get there. You don't want to study aspects of business law, or get into the math of adjusting comparable property values or learning financial rules because you don't see those areas making you any money in the next few days. Most of you are looking for fast and easy, that doesn't exist in real estate

Every newbie says "I'm willing to work hard, do what it takes, learn the way to do a deal" no you're not, not really, you really aren't that willing to understand that building any business begins with understanding the business side, rules, ethics, obligations, how the industry is put together, how it functions or the basics of what you choose to do.  Most appear to assume they already know, but they don't, not even a clue.

You have been lied to and either you don't understand that or you don't want to face reality, you're after a dream that has been sold to you.

The longer you try to take short cuts in learning real estate, the longer it will take you to make money and be successful.

When you begin to realize that everything in this business begins by building a knowledge of the basics in general business and what constitutes value in what you do can you possibly understand what it is that you're trying to do.

Wholesaling is an easy process, but the process doesn't make you money, it's the fundamentals of real estate that make you money. It's the same thing in every aspect or strategy (as investors like to refer to them) in real estate.

I'd really like to see newbies succeed, but I know you won't as long as you continue to have the fast buck attitude, as long as you keep following schemes and trying to implement systems from some seminar or just try to specialize in putting square pegs in round holes as you might on an assembly line.

Success is not doing some deal or doing a deal a month until you hit some wall and get lost then get out of the business, when I say success I mean build a business that can last for your working career or lifetime. Where you know how to profit regardless of market conditions, what interest rates might do, regardless of what laws are passed or what aspects may change, only when you can adapt to anything that comes your way can you be successful for the long run.

There needs to be some real attitude adjustments made, some soul searching, some serious self examination and goal setting, first in your personal lives and then in your business expectations, as those are an extension of your self image and beliefs.

Hundreds if not a thousand over the years, have asked me to teach them, I've had RE "teacher" types ask me to mentor them, the answer has always been no to most.

The reasons the answer is no is because they don't understand the fundamentals of real estate,  they have an attitude that only certain functions must be known, they aren't willing to recognize that it takes a broader understanding of real estate to function correctly, they lack too much knowledge to begin where they want to start. So, I have to say no. Their failure would be my failure and I don't like failing.

Some of you can't even describe what real estate is, much less why it is valuable in order to apply techniques to improve the value.......which really means you have no understanding of what you're doing or trying to accomplish.

So, again, learn the fundamentals of real estate, then look to your strategies to apply in your business.

I've been wanting to get this rant off my chest for a long time.......thank you. Hope you make a mature, educated, informed decision concerning your future. Good luck :) 

  

Medium logoscopiccroppedblue2Bill Gulley, General Real Estate Academy | https://generalrealestateacademy.com

Some harsh truth in Bill's statement.  But truth it is.

I cannot even count the number of posters who say, "Ready to work hard and do what it takes!" who when they are advised to take a simple, 100 hour, $500 real estate licensing exam disappear or go silent.  

Apparently that is more "doing what it takes" than most are willing to contemplate.  No one has ever really had a good reason NOT to do it, and there are many, many good reason to do it.  But it isn't a get rich quick scheme, and so no one wants to hear it.

@Bill Gulley   

Thanks for using my post to get this rant off your chest. I hope you feel better now. Meanwhile, every newbie's situation is different. If you don't know someone's background, where they've started, or how then you can't very well insert them into a category of your choosing and write them off as bad news. You've obviously put a lot of thought into your lengthy post and I will be the sacrificial lamb today so that other newbies won't have to listen to you tell them they aren't competent enough to conduct this business in a professional manner. I wish you nothing but success in whatever you do. Good day. 

Originally posted by @Shante Harris:

@Bill Gulley   

Thanks for using my post to get this rant off your chest. I hope you feel better now. Meanwhile, every newbie's situation is different. If you don't know someone's background, where they've started, or how then you can't very well insert them into a category of your choosing and write them off as bad news. You've obviously put a lot of thought into your lengthy post and I will be the sacrificial lamb today so that other newbies won't have to listen to you tell them they aren't competent enough to conduct this business in a professional manner. I wish you nothing but success in whatever you do. Good day. 

Don't get mad at Bill for speaking truth.

Have you taken a real estate licensing course?  Because that is the best "real way" to start. If you have not, why not?  It is cheap, short, and "real."

I am genuinely curious why the advice most often given to new wholesalers (that they gain knowledge of the actual industry,rather than just knowledge of wholesaling) is so often ignored.

I actually have a friend who just got his license and I am waiting for my class to start in a few weeks. It's mighty funny how quickly people can judge. Why is one profession more frowned upon then the other? If it couldn't be done it would be illegal and no one would be doing it leaving it up to the licensed ones only. If there are such strong feelings about it, then why even read let alone respond to a newbie's post? Why not just pass it up since the "norm" is that they don't last long in the business anyway?

Because they hurt people, and the industry, before they fail.

Wholesalers who don't know what they are doing hurt sellers.  Real world hurt, of real people.  And that hurts the industry as a whole as well.

Why not wait until after you take that class before getting started?  You probably didn't hop in a car for a cross-country roadtrip before taking drivers' ed.

@Richard C.  I am obviously not the only newbie in the world to this profession, so why ask me such a broad question. Also, I don't speak for all newbies nor am I mad at Bill. You both decided to air your grievances on this post when if you felt it bothered you so much, perhaps you should have passed it up. 

I do have business experience as I am a freelance writer as well. SO this is not my first time around the block creating a business, I'm not looking for a "get rich quick" scheme as I am making a fine living with my books, and I am not in this to make a quick buck. 

@Richard C.  , what does the failure of previous wholesalers have to do with me? SO you all choose to gang up on every newbie who decides to enter real estate through wholesaling in hopes of forcing them out? One less newbie tarnishing the business? No, there are other ways of going about doing things and using this point to "get stuff off your chest" isn't one of them.

No one is ganging up on you.  You asked how newbies should get started, "the right way."  Bill told you that.  If his language was a little harsh, it is probably because your post is virtually identical to thousands of others he has seen before.

No need to get defensive about it.  Doing the right thing, in this context, means learning enough about what you are doing so that you are complying with the law and not unintentionally hurting people.

I can assure you that no one will be hurt in the midst of my deals. I can assure you that my business will not only thrive and flourish but will be around for a very long time and when I get my license it will only get better as I partner with my friend and expand. There is nothing wrong or illegal about what I'm doing and as long as I remain honest there is no reason why I will not succeed. Furthermore, I am a college graduate and my friend has a Master's degree. Many years of thought and planning went into this venture so we are not some "fly by night" people. Each individual is different and should be taken into consideration the next time someone chooses a post to "vent".

And I thought I remembered your name, so I looked at your posting history.  And the questions you have been asking are good questions.  But they are good and BASIC questions, and if you don't know the answers, you are not ready to do this.

You need to know how a closing works.  What a title company does.  What a legal contract looks like.  The sorts of things you will learn (or start to learn, at least) in a REA class.

You will be far better served by waiting than by spending time and money chasing a system advocated by an eBook that doesn't even bother covering the basics of real estate transactions.

Shante, first, it wasn't really directed at you personally, I'm not implying YOU are lazy for example, I was speaking in generalities.

How can I justify my opinion? Evidence remains in hundreds of posts by new folks, especially in the wholesale threads.

Take that class, then after a year come back an reread what I ranted about and reread your response, I doubt you'll have the same feelings, do it again 5 years from now and you'll probably laugh in agreement with me.

Thank you for wishing  me success, but I've passed that reaching that years ago, I'm retired.

 I only selected your post as the title you used is a good one, it means more new folks may search the "how to start" aspect and find my rant, so, again, not really about you but thanks to you.

And, to be in real estate, or to be in the used car business or to break rodeo stock or be in similar rough riding business environments, new folks need to have thicker skin, understand my personality at times is just that of an old kick butt Army guy, I'm not here to teach Sunday School.  While my ways are not always seen as being most polite beating around the bush, a bit of harshness (as Richard put it) is the quickest and most efficient way to get ones attention. Today, I thank those that slapped reality in my face when I began.

After you learn those fundamentals things will come together for you and the puzzle will be much easier to put together.

Good luck!  :)

Boy, I can't keep up....saw you say no one will get hurt.

You have great intensions I'm sure, just as most starting out. Problem is, you don't know what you don't know, and having the best intentions doesn't always take of unforeseen effects on others from the actions taken in this business. How sellers can be harmed usually doesn't cross the minds of new players as they don't look beyond the transaction they are dealing in, there's much more to it. Take the class and you'll have a better understanding.

If "wholesaling the right way" means what the right ways as claimed by those teaching the topic, chances are really good you didn't get the "right way" many have posted the right way and they didn't have a clue as to the ramifications of how they proposed to do a transaction. Without money, there are some real risks assumed in this area, it can be done, but most haven't been discussing the right way to do it. :)

Medium logoscopiccroppedblue2Bill Gulley, General Real Estate Academy | https://generalrealestateacademy.com

@Shante Harris  

I have to say i am in agreement with many if not all of the points @Bill Gulley  made in his post.

I do not think he wanted to single you out either. 

& after reading through this entire thread it became clear that many of the things in Bill's post did not directly apply to you. They were just general things about the industry.

I commend you for going out and getting licensed and wanting to do things the right way.

The real issue here is the entire topic of wholesaling is a very gray area for those that are licensed and those that are not licensed.

Granted the term "wholesaling" can mean several different things.

1. Buying houses then quickly reselling them with little to no work.

2. Getting a property under contract obtaining transactional funding then double closing.

3. Getting a property under contract & actively trying to procure or broker a buyer to assign your contract for an "assignment fee" 

(An Assignment fee is a Real Estate Commission...End of story.)

I too have been very critical of some of these practices as there are some VERY SERIOUS legal issues with these. That fact remains that not all of the 3 activities I just described are always legal to do.

Number 1. Unlicensed individuals can do this all day every day with no issues. Except for one or 2 states. There is a limit to the amount of transactions one can make without a license.

A licensed individual can actually get themselves into some trouble doing this. When investors talk about the pros and cons of getting a license this is really the only actual con. 

A licensed professional can be taken to task for misrepresenting the market value to a seller in order to take advantage of them for personal gain.

Number 2 & 3 can be problems for both licensed & the unlicensed people. 

Unlicensed folks are just running around acting as brokers which they are not.

Brokers can get into trouble for doing this as well but for the same issues as in number 1.

Case in point 

"you don't know, what you don't know"

Thank you for going to the class & learning more about what you do not know. 

Many on here just want everyone to have the same attitude you do towards education. It seems your post just happened to be the thread that it happened in.

I wish you luck in your RE endeavors.

Medium holton wise property group logo jpegJames Wise, The Holton Wise Property Group | [email protected] | 216‑661‑6633 | http://www.HoltonWisePropertyGroup.com | Podcast Guest on Show #127

I'd also like to say that nobody knows what they don't know & nobody knows everything, I know I sure dont.

Taking the class will not automatically give a person the answer to every question in the world but it is a start with some core principles.

Medium holton wise property group logo jpegJames Wise, The Holton Wise Property Group | [email protected] | 216‑661‑6633 | http://www.HoltonWisePropertyGroup.com | Podcast Guest on Show #127