I'm a newbie with real estate investing. I've been at for a couple of months and I already feel like I've hit a wall.
I've tried some unconventional ways to attract and find motivated sellers and buyers but all that I have been able to come across is other wholesalers looking connect. I'm not deterred by this because I know networking is KEY in this industry, but it just seems that I'm on the sideline just watching the game go on instead participating.
Some of this may be my own doing, because at this moment I have been able to market the traditional ways like bandit signs, purchasing sellers, and conducting a mass mailing campaign. I'm pretty cash strapped, working from 9 - 5, living paycheck to paycheck and I've had to become creative (cheap) with my marketing. I have left business cards at local shops, created multiple posted on craigslist, commented in real-estate forums, and even used fiverr for some marketing.
So to wrap this up, does anyone have an ideas on how I can get past this hurdle and get in the game or even better, find a mentor who would be willing to help get past this "wall"
Keep your head up. Every wholesaler has has this problem before. If it were easy, everyone would do it. You seem to have your basics covered (bandit signs, purchasing sellers, and mass mailing). Are you having problems finding properties? If not, you should try to post them on property websites (postlets, myhousedeals, craigslist etc.). That is a way to get your phone ringing. With a 9-5 job, are you able to freely answer your phone and take calls from the bandit signs? Those require you to be able to answer your phone at anytime. You let one hour pass, the likely hood of that person being a buyer for you rapidly diminishes.
I mentioned some websites to post deals that you get. Do some more research about some local websites that might be beneficial to you. I know in DFW we have a few that are very good. As long as the deal is good, people should be emailing/calling you left and right. I hope this helps! Let me know if you have any other questions or need some help. There are plenty of awesome people to help you on Bigger Pockets!
Gary - I would encourage you to keep studying, reading, and keep touching base with the those property owners that you are interested in buying from. It seems like most people give up right before a breakthrough. In most cases, it takes multiple touches, and often several months, for a seller to respond. You've got this if you are consistently moving forward and learning from others.
@Gary Josephs Everyone has gone through what you're going through now. Feel better?
Didn't think so. OK, let's get practical. The big problem with your marketing is it isn't marketing. I refer to it as "littering". Bandit signs, leaving business cards at businesses and restaurants, etc...are hit and miss tactics...and not very efficient or cost effective (even though it isn't very costly).
One of the things I didn't see you mention is how you are presenting to your local REI groups. You are attending your local REI group meetings...right? That is going to be where you sill find the starting point of what you are looking for.
As @Jonna Weber says, "Keep studying, reading, etc..." to learn how to present to this group, but before you can present to them you have to find them. You'll find them in abundance at your local REI's. (notice the plural REI's).
Wholesaling is not the best way to start in the RE Business. You say you're working a 9to5 & living Paycheck to Paycheck... So do you even have Pre Approved finances in order? Or are you planning on re-listing the property, playing realtor & trying to sell the contract. I guess what I'm asking is can you purchase these properties you're marketing towards if you need to? If not...Get use to the wall.
Sorry... couldnt help it
I disagree that networking is the key to wholesaling. If you have a deal finding a buyer is not that difficult. Finding the sellers is the tough part. You have to find desperate sellers who are willing to take a beating on the sale of their house. So your efforts have to be focused on finding those sellers. That means marketing and that's really the key.
I do occasionally attend seminars. I went to one a few months ago put on by some local folks. A few of the presenters are wholesalers/fix and flippers. They do extensive marketing to generate deals. Both mentioned they spend about $10K a month on marketing. They keep the good deals for themselves. The wholesale the lesser deals. By doing both fix and flipping and wholesaling they are in a much better position to evaluate deals. They know values. They know rehab costs. So they know if a deal is profitable or not.
No matter what the gurus say wholesaling is a job. Its a commissioned sales job. That means you can put in a bunch of time, effort, and money and never get paid a cent. Are you sure this is the right second job for you? As you're finding, its not easy, cheap, nor quick. Maybe there are other second jobs that are a better fit for your available time and skills.
I can't speak to wholesaling at all but what I can speak to is investing in general and the patience it takes to stick to it.
Even if you had the financing/money, the fact is that there aren't thousands and thousands of deals sitting there waiting to be taken down. You're going to run thru agonizing long spells where there simply isn't a deal to be had.
Now if you were able to throw more money at it, then that is obviously going to give you a better shot at landing something. But for most of us, that just isn't an option. You just have to get used to dealing with these long spells and chalk it up to being an investor.
But keep in mind, even if you could get one deal a year that you made 5k on, the amount of information you're going to learn over that year is going to be worth 10 times that. And, at some point, when you are able to throw more money at marketing, you're going to get back an incredible return on the time you invest now.
Keep at it. Keep learning. And keep investing in yourself. Maybe even consider getting a part time job to fund some marketing too. I always liked to think that I could do anything for a couple of months. And if I had to really bite the bullet to do two jobs for 3 or 6 months to save some real cash to fund something bigger, it would be worth the sacrifice.
But even if that isn't an option, keep at it. Keep learning. Keep networking with other investors. Eventually, you'll get pulled up into the fray somehow/some way. Its inevitable. Its always seemed to me that the people that never give up and maintain that focus always end up doing well.
Its the ones that give up because they're not seeing the instant success or because they stop believing and decide to move on to something else are the ones that end up stuck in the mud because they're constantly moving on to something else.
You'll find a niche that works for you eventually. And when you do, you'll thank yourself 100 times over for sticking to it. Real estate is the most rewarding and greatest wealth building tool on the planet. PERIOD!
Thanks everyone, thats was some very valuable information. I'll try to apply it to my craft.
ps I won't quit
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing