2 things that every good newbie wholesaler should keep in mind

3 Replies

I have to admit that I almost let a guru make me believe that I could start wholesaling "WITH ABSOLUTELY NO MONEY AND NO EXPERIENCE" (in my fasting talking money guru voice, lol).

After reading lots of posts about wholesaling and wholesalers (from the good, great, and excellent, to the bad, ugly, and outlandish), I'm glad the only thing I wasted was $200 and 3 days of my time.

While I still have A LOT to learn, I have figured out that there are as least 2 things that every good newbie wholesaler should keep in mind (and maybe even some pros):

1. Have some basic knowledge at the very least.

You have to at least know about comps in the area your potential sell will be, approximate repair cost (if any), the current value and the ARV of the home. And that is just the basic info. So, while "no experience" may be needed, you still need to take the time to get the basic knowledge of what you are doing so that you can ensure that you are working in the best interest of everyone involved; seller, yourself and your buyer.

2. Always follow the Golden Rule: Treat others how you wish to be treated. But even a crook knows that rule, they simply choose to disregard it.

   Mr. Guru also almost had me believing that you don't have to tell the seller that you intend to allow someone else to purchase it. That part really rubbed me the wrong way because my instant thought was, "If I don't tell my seller in the beginning, they will still find out in the end when it's time to start signing papers, then they may completely walk away. So now, not only have I wasted this person's time, I have also lied to them and chances are they don't trust me and will spread the word, making it that much more difficult for me later". When I gave my opinion of the advice, he said that the "and/or assigns" clause makes it legal even if the seller doesn't see or acknowledge that part, so there was nothing to worry about. All fine and good for those who don't have good morals and ethics, but I'm not one of them, and the way I see it, that's my name and reputation on the line, no one else. I would have no problem saying, "Hey, I see you are wanting to sell your house. I know someone who may be interested in purchasing it. Do you mind if I bring them by to take a look?". They can only say yes or no. If it's no, then take the no and move on to find your next deal. I don't like when important details are not relayed to me, so I wouldn't skip the important details with someone else. If I did, then I would probably be the topic of one of the horror stories about bad wholesalers that seem to run rampant on BP. I certainly do not want that type of attention...lol.

I have not done any deals yet. I'm still trying to figure out how to get buyers and sellers, and which list I should start to build first. I'll search BP for those topics because I'm sure they're here somewhere ☺.

Anyway, that's my take on how wholesalers should be. I know there is more to it, but I'm sure if new wholesalers applied the above advice, at the very least, I wouldn't have to stop researching to read the latest "wholesaler nightmare" that pops up when I get a key word alert about wholesaling or wholesalers.

But I love the success stories...they really motivate me...hehe...can't wait to get my first deal!

Mimi 

why don't you spend less than a thousand dollars and get your RE license that is a career you can spend a lifetime at and if your any good you will make good to big money and for the rest of your life... wholesaling has a very short shelf life and is as you discovered much much tougher than one might think.  not that it can't be done but its not an industry its a bunch of non associated individuals all trying to do deals and out maneuver each other LOL.   The license will also give you the base knowledge you will need to be successful. 

@Jay Hinrichs, exactly my take on it. I've been a member of BP not even a month yet and already I can see that my initial thought of the process was COMPLETELY wrong. Personally, I don't like used car salesmen, but that seems to be the norm of how many new wholesalers are. They want to get a good deal without regard for who will ultimately have to live with the decision in the long run, the seller and the ACTUAL buyer. I don't want to be one of those.

I really would like to get my licence but my finances don't like me very much right now...lol. I'm working full time and trying to save what I can so that I can start to make those types of moves. These days, $13/hr doesn't go as far as it used to. Every time I get something saved up, something comes up and I'll have to use it. It's very frustrating. Would you happen to have any suggestions?

Well my advice would be to call every agent, broker, title co., attorney etc and beg them to take you under their wing. If you don't have money you better find the time. It's one or the other or time or money. Life is short if you want it you'll find a way, if not you'll find an excuse.

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.