Confidence in Wholesaling

13 Replies

Hello, I have been doing research and taking courses in wholesaling. I really want to get started once I feel confident in the process. My concern is find a seller who will trust me to put their property under contract and then finding a buyer who will take over the property. I would like to find out from wholesalers who have experience, if you can explain the process that you do when you find a property from a distressed owner. I would like to find out what you do to have a seller have faith in what you do and put the property under contract. 

Also, when you first started, who do you recommend that should be a part of your team. For example, a Real Estate Attorney, CPA, a title company,. What is the typical cost to hire a Real Estate Attorney? I am really interested in getting started as a wholesaler real soon, but If someone can answer these questions it would be a great help! 

Best of luck with your REI!!

Jeff 

@Jeff Deutsch , I'm not too far away from where you are.  I'm just starting but I've had a lot of the same fears and questions.  I have a B type personality that gets stuck in analysis and learning.  The only way I was able to start was to do it and quit asking so many questions.  I could spend years learning, and I highly recommend getting an education, but the best education is to fail by doing and that will move you forward into success if you keep moving forward. 

To your first question, I've found that they have faith in me when I have faith in me.  But I had to put my foot in my mouth several times and have sounded dumb many times... but the more I do it, the better I feel about what I have to offer.  The more confident I am, the easier the conversation goes.  You should really practice out loud with a friend.  Tell them to ask you tough questions and come up with answers.  This will help you increase up your confidence faster.

My first advice is to get started and don't worry so much about the details end game.  it will happen when it happens.  Hard for me to say that, but I'm getting deals, and I'm not sure how to sell them... freeks me out so much I have to work really hard finding solutions.  I've lost a few that I thought were deals and were not.  I've learned and fall forward.

What I recommend is to start advertising or beating the streets.  Learn enough to get started and set up your marketing plan.  Then learn the next step when you need to.  You may sound foolish and you will loose deals by not saying the right thing or estimating the numbers wrong.  After a while, you will get a better grasp of how to listen, what to listen for, and how to talk to the needs that people have.

As you are marketing, and making offers, then start adding your team members.  Start talking to Real Estate agents.  Start asking for referrals from others in the same area.  What is a good title company to use.... got a good and cheap roofer... etc?

Don't' worry about the lawyer. You will get one when you need one.  Right now you need deals.  I waited until I started getting deals before I start talking to a CPA or a lawyer.  No taxes to worry about if you don't have any income.

Good luck and get started

Great questions @Jeff Deutsch - send me a colleague request with your email address and I'll give you our 3-video (YouTube) course of wholesaling, plus sample contracts. (ZERO sales pitch; pure training.)  We go step by step thru our process for meeting and negotiating with sellers, plus moving the deal over to your cash buyers...  People like this short course because it's very process oriented which is what I hear you asking... 

Originally posted by @Tim Watts :

@Jeff Deutsch , I'm not too far away from where you are.  I'm just starting but I've had a lot of the same fears and questions.  I have a B type personality that gets stuck in analysis and learning.  The only way I was able to start was to do it and quit asking so many questions.  I could spend years learning, and I highly recommend getting an education, but the best education is to fail by doing and that will move you forward into success if you keep moving forward. 

To your first question, I've found that they have faith in me when I have faith in me.  But I had to put my foot in my mouth several times and have sounded dumb many times... but the more I do it, the better I feel about what I have to offer.  The more confident I am, the easier the conversation goes.  You should really practice out loud with a friend.  Tell them to ask you tough questions and come up with answers.  This will help you increase up your confidence faster.

My first advice is to get started and don't worry so much about the details end game.  it will happen when it happens.  Hard for me to say that, but I'm getting deals, and I'm not sure how to sell them... freeks me out so much I have to work really hard finding solutions.  I've lost a few that I thought were deals and were not.  I've learned and fall forward.

What I recommend is to start advertising or beating the streets.  Learn enough to get started and set up your marketing plan.  Then learn the next step when you need to.  You may sound foolish and you will loose deals by not saying the right thing or estimating the numbers wrong.  After a while, you will get a better grasp of how to listen, what to listen for, and how to talk to the needs that people have.

As you are marketing, and making offers, then start adding your team members.  Start talking to Real Estate agents.  Start asking for referrals from others in the same area.  What is a good title company to use.... got a good and cheap roofer... etc?

Don't' worry about the lawyer. You will get one when you need one.  Right now you need deals.  I waited until I started getting deals before I start talking to a CPA or a lawyer.  No taxes to worry about if you don't have any income.

Good luck and get started

 Hi Tim. I Was wondering how it is that you estimate rehab cost? I have seen a few equations to do it but have not yet jumped into doing a deal myself so I haven't Personally used any of the equations. What has worked for you best?

Thanks for answering my questions! I think this is a great opportunity and I realize it will be a great challenge, but I realize the more knowledge that you have about REI the better chance for success. I don't think the REI is something that you just jump into quickly because that is when you start to make mistakes, and this is what I was told when I went to my first seminar on REI. They said you need to act quickly, and really I do not want to make a costly mistake. Athough, it is easy to say that you have an interest in REI and actually making it happen. I have been told that there are many wholesalers and fix and flip investors and this market is just saturated, but I dont care and will start really soon!

Hey Dev, thanks for letting me know about your videos! I would like to watch the videos to learn as much as possible. If there is anyone who is interested in working together and start a team, please let me know! I live in Colorado and they always say it is best to have a successful team, and I realize there are great investors on this website. Please let me know if you have an interest in becoming successful in this field. 

Have a good one, 

Jeff 

I like what @Tim Watts mentioned. We could all spend the rest of our lives getting educated. At some point, you just have to do it and learn along the way. You are never going to learn everything and get it all perfect each time. I try and work on being comfortable making mistakes and then learn from them. Good luck and do something new.

Originally posted by @Dev Horn :

Great questions @Jeff Deutsch - send me a colleague request with your email address and I'll give you our 3-video (YouTube) course of wholesaling, plus sample contracts. (ZERO sales pitch; pure training.)  We go step by step thru our process for meeting and negotiating with sellers, plus moving the deal over to your cash buyers...  People like this short course because it's very process oriented which is what I hear you asking... 

 If you don't mind me asking, is this offer available to everyone?

@Josselyne Lugo   When doing my initial evaluation when the lead comes in.  I try to judge if it is a cosmetic or major rehab and I use a simple $ / sq estimate for repairs.  It does not beat going to the house and seeing it, but it gives a starting point.  I dont' have construction expreience, so this is the best I have right now.

I find that the houses I've been getting recently are $15 to $20 / sqft.  I have lost quite a few bids because someone with more experience has come in and given a better, more accurate bid.  But I am still getting the occasional contract and I'm learning as I fall forward.

Like I said, I'm really weak so I did what @Ryland Taniguchi mentioned.  I've partnered with a local flipper.  I give him first shot at my leads and he spits the gross profits with me if he picks up the deal.  

Originally posted by @David White :
Originally posted by @Dev Horn:

Great questions @Jeff Deutsch - send me a colleague request with your email address and I'll give you our 3-video (YouTube) course of wholesaling, plus sample contracts. (ZERO sales pitch; pure training.)  We go step by step thru our process for meeting and negotiating with sellers, plus moving the deal over to your cash buyers...  People like this short course because it's very process oriented which is what I hear you asking... 

 If you don't mind me asking, is this offer available to everyone?

Yes, David.  I've given our Wholesale Accelerator course away to hundreds of people of BiggerPockets.  I just ask that you send me a Colleague Request and include your email address.  As mentioned before, this is 100% education, 0% sales pitch.   Plus we include the same Purchase and Assignment contracts (in Word docs) that we use to do wholesale deals...

"Don't let making a living prevent you from making a life." ~ John Wooden

Yes, I agree that you need to jump in and learn from your mistakes. That makes sense and I agree that finding an experience wholesaler and splitting any profits makes sense. If there is someone in this forum who lives in Colorado and is willing to split a profit 50/50 doing wholesaling please send me a message here. 

Originally posted by @Tim Watts :

@Josselyne Lugo  When doing my initial evaluation when the lead comes in.  I try to judge if it is a cosmetic or major rehab and I use a simple $ / sq estimate for repairs.  It does not beat going to the house and seeing it, but it gives a starting point.  I dont' have construction expreience, so this is the best I have right now.

I find that the houses I've been getting recently are $15 to $20 / sqft.  I have lost quite a few bids because someone with more experience has come in and given a better, more accurate bid.  But I am still getting the occasional contract and I'm learning as I fall forward.

Like I said, I'm really weak so I did what @Ryland Taniguchi mentioned.  I've partnered with a local flipper.  I give him first shot at my leads and he spits the gross profits with me if he picks up the deal.  

Ok thanks for your input. have you heard of the equation (ARVx70%)-repairs? then you'd have to subtract what profit you want to make and that would be your offering price. When you get a property under contract I thought nobody could come in and buy it unless you authorized it. That is what the memorandum is used for or at least to my understanding it puts a hold on the title. Have you heard of this before or have you used it?