I have been in the process of planning for the launch of my wholesaling business. I have to be honest and say that I have been shaking like a twig and have been nervous about getting started. In order to break it down into pieces, I would like to know exactly where to start? What tools do I need? Driving for Dollars: Pros & Cons? How to market my deals? Can members post deals on BiggerPockets, and how?
Please give advice on these basic tools that I am thinking will be required:
1. PropertyShark (To have access to the details of properties I am interested in)
2. Excel Spreadsheet for putting together reports for buyer review
3. Basic Website. (Is a website really needed?)
4. Business Cards
Any other advice helpful to a beginner for the purpose of getting off the ground. Thanks guys!!
I'm not a wholesaler so I'll let others comment on most of the questions you have, so I don't send you in the wrong direction! But yes, deals can be posted here on BP in the BiggerPockets Marketplace. Good luck!
@Quinten Jones Welcome to BP. I'm also new but have digging through this like there's no tomorrow. Since I am new though instead of "recommending" or "advising" I'll share what has worked for thus far. And by "works" I mean helping me feel comfortable with finally getting out there and taking action. My marketing campaigns have officially launched and have spoken to a few leads already but no deal yet. It does take time and money, contrary to what some say.
First thing I would do educate yourself on the entire process of a wholesale deal. There are plenty of free sources such as this site which includes the forums - ask questions/search, the blogs, and most helpful to me have actually been listening to the wholesale-specific podcasts. Sean Terry (rather call him a PRO than a guru) also has a VERY informative podcast called flip2freedom. This guy will dig into specifics such as what to say on a yellow letter, how to negotiate with a seller, how to build a buyer's list, etc. He pretty much touches on everything there is in this field, in detail.
Then, what I would do (actually did) is simply take action. Send out letters, go to your local REIA, call cash buyers and other wholesalers, just let everybody know what you do now. Actually doing, and even screwing up, is how I learn best. Just avoid doing anything that can land you in jail or cost you thousands of dollars.
Reach out to me if you need anything.
I'm in the process of building this business as well so like @Luis Lopez has said, I can only share what is helping me.
I would say a website helps. I already got one lead from my website and and it's only been up for a week and I haven't really been pushing it that hard yet.
Sean Terry also has a really great e-book that goes through the wholesaling process from start to finish. There are also so many YouTube videos that can give you a wealth of information. My favorite channels are Adura Sanya and Chris Bruce.
@Quinten Jones Direct mail, bandit signs, and a website that generates leads.
Make sure you follow the local rules when it comes to bandit signs but they do work.
I love direct mail. Yellow letters or postcards.
Websites are great and help you build equity over the long run.
Now the only thing you need to do is take action. This is where most if not all fail.
I'm in the process of getting started as well and just got a google voice phone number as well as mailing box at local UPS store.
I also have gotten a list of absentee owners and am about to send out my first direct mail campaign.
I've been thinking about a website but I'm not a guru at it and wonder how long takes to set up or do most people hire a VA (Virtual Assistant) to do this?
@Athena Cole How did you get yours up and going? Its really awesome by the way!
@Phillip Smith Thank you!
I just went with a Wix.com website. There's no coding, it's extremely easy and they have tons of templates to use. You should check them out. You can throw up a free website just to see if it works for you, and if it does, you can switch to paid and transfer your domain to it.
Knowing your budget is #1. You need to figure out how much you can spend on marketing on a weekly/monthly basis. Getting a house under contract is hard especially at a discount but if nobody knows you have it... So you have to have buyers and know what they want. Every buyer has their own criteria for rehabbing a house or buy n holding. The funny thing is I have to explain this to buyers I haven't worked with before. They think all investors think a like.
Anyway here are some of the more important things you need to do first, in no particular order.
Call every title co. or closing attorney and make sure they do assignments/double closings.
Get a descent contract for buyer/seller.
Get a separate phone # google voice works just fine.
Use ups as a mailing address.
Who are you targeting?
Where are you targeting?
Are investors buying there? Meaning cash transactions. If not stay away!
Location. Location. Location.
What are investors buying how many beds, baths and for how much?
You can get a website anytime you want. Get a property and use postlets to sell it when starting out. It syndicates to several major sites and it's free!
You can use bandit signs, business cards, flyers etc. they all WORK, but you'll get a lot of under water, pre-foreclosures, tire kickers and headaches trying to work with them.
I suggest direct mail. It's called direct mail because you are directly targeting a certain house that you know has equity! Not throwing something at the wall and hoping it sticks...
These are just a handful of things to get you started. Most will never get this far. Good luck.
Just my 2 pennies.
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