Help! I need direction in Wholsaling

25 Replies

I am from Atlanta and I love the idea of real estate and financial freedom..Key word Free!!  I have read books etc. I have spent my wheels and have lost time..money..wife..and patience. I want and need true success. Anyone out there that truly wants to help me gain the necessary..marketing..and closing skills for true success..please respond.  Call me Eli

Hi Ammon. I can feel your frustration just from the words you've written. Wholesaling can be really difficult if you let it be difficult. To make it easy, it essentially boils down to the following: 

  • Figuring out what true, active, cash buyers want and what they are willing to pay
  • Go and find it

It ultimately makes it easier when you know exactly what you're looking for and don't spend money marketing on deals you may ultimately never be able to close. You can find true cash buyers at the foreclosure auctions, in the tax records or do some marketing for them. There are also marketing list companies on which I'm sure you can pull records of active cash buyers.

In terms of marketing, I don't know exactly what you're budget is but it boils down to getting the people to call you. You can do direct mail (effective but relatively expensive), driving for dollars (i.e. look in the areas where your buyers want to buy), bandit signs in your target area (i.e. where your buyers want to buy) and/or contact For Sale By Owners in your target areas. You can also purchase leads or look for other wholesalers who already have inventory and just bring along your buyer. Once again, it just boils down to finding what your buyers want.

I would also encourage you to learn about other ways to do deals besides just wholesaling (e.g. lease options, structured deals, referrals) because you can get a better yield (i.e. more deals and money) from your leads. 

If you're interested in learning more, feel free to send me a message and good luck!

thankyou very much for your speedy response! I am interested in any strategy that will help me to become free from jobs...I have also contacted a real estate investing coach...He charges 6,500 for the entire year...Is this a practical approach..Im stuck and I am stupid when it come to this..I dont know which way is up or who is truthful or not...I do not want ro waste any more time in my life on hope dreams...I need and want results.  I am hurting mentally.  I need direction.

look up sandwich lease options.. I haven't done my first deal yet but it takes little money and no credit no mortgage.. you simply find a house for sale by owner.. you give him some money upfront and have him give you control of his property by signing a lease to purchase agreement (rent to own) and then you sublease the property to a tenant for a down payment plus first month's rent.. I assume you raise the rent 200$ more so you can pay off the owner and keep 200 a mo.. at the end of the lease if the tenant chooses to buy the house you can add 100 to the sale price and that is yours to keep 

@Ammon Eli Moshe , you are likely getting as good an education here, asking questions and getting answers, FREE, as you would in any other manner. 

If you afford $6,500 over one year, you can afford instead to SAVE it towards ACTUAL DEALS! All the best...

Thankyou brothers and sisters for your time and your love..It is valued and appreciated..Miguel I will look into that!!...Brent! Your message was not clear to me...are you saying just ask questions and take action from here instead of spending the money?...Frank! where do I go to be around more like minded people?

@Ammon Eli Moshe

As Brent mentioned, save the money to actually invest.  Remember too that wholesaling is also a job, so you're just switching one job for another.  Of course, hopefully you like the wholesaling job better than your current one.

True investing and hopefully passive income is owning rental properties.  Save up money, try searching for owner finance deals, build your credit.  Realize that it takes a lot of time and isn't for everyone.  I've been in the business for over 10 years now - sometimes I have months at a time without a single phone call, and then in the last two weeks, I had to evict someone, advertise for new tenants, a refrigerator in a different place died, and a water heater just broke in yet another place!

Still, the overall experience has been a good one.  Wishing you the best!

- Tom

There are a lot of good comments here. I'll echo a couple of things here. I agree with saving your money for your investments. Also, find yourself a REI meetup group.

There are many ways to win and many ways to lose in real estate. Be certain you have multiple ways to win and multiple ways to exit.

There are a lot of people out there ready to separate you from your money. 

Use your head and Good luck,

-todd

If you can afford $6500/per year. Personally I would research BP for direct mail threads (theres a lot, just pick one with a lot of responses and go for it) and start a DM campaign. Direct mail is typically the greatest lead producer for wholesalers and investors.

Go to rei meetings in your local area I don't care how far you have to go. Get your re license and learn the basics of re. Keep asking questions on here but research before asking. Wholesaling is a great way to make money but it's not easy and there are a million different ways to invest in re. Learn learn learn work work work and don't stop for any reason. Rei is not a get rich program.

The harder you work the luckier you get :)

Ammon,

You sound like you're getting super desperate in wanting to get it done.  That's good! That means you're ready to take action.  But Action without knowledge is a gamble.  You're gambling on a prayer,a hope,a wish and not making a solid business decision.

Wholesaling is the hardest part of Real Estate and it's not even real estate investing! You're a marketer that just happens to sell real estate.

There is a lot of sound advice on this thread, but @Miguel Rosario offered great advice and to his point, you'll both need more knowledge on the subject which is easily available to you across these forums. 

I'm not saying you shouldn't wholesale, but you'll have to put in a lot more time and effort into succeeding. If you want something now, you could start bird dogging deals. Plenty of Atlanta people are looking for that. You can create a business model around it, then when you start seeing what people are looking for you can start locking up deals via a JV, then you can start moving forward by yourself or continue partnering up.

It is good to have an re licence under your belt for many reasons.. it makes you more legit on your portfolio. And it gives you the basic knowledge of real estate which can benefit you from investing (chances of getting into bad deals).. and you can hedge your risks by having an option to sell real estate if all goes bad. you also get your foot in the door.

It shouldn't be expensive for a course I paid 200$ up here where the cost to live in a cardboard box is more expensive than a small room elsewhere (new york). 6 classes to go.

If you practice wholesaling like 99 percent of people on BP and not actually buying the property you will be practicing real estate without a licenses but that doesn't matter because you won't get caught and the government doesn't have the recourses to go after you.  You simply sign a contract that says you are buying the property and someone else can assume the contract and convince yourself you now have an ownership interest in the property and that this protects you legally.  If a realtor does this it is called a "net listing" an it is illegal, they would be fine, loose their license, and could go to jail.  But, you are a wholesaler so the rules don' t apply to you.  You don't have to have any ethics, you don't need earnest money, and the law doesn't apply to you.  You are so much smarter than the dummies who have gotten their brokers license and actually studied real estate law.  Good luck! 

@Ammon Eli Moshe I can feel your frustration.

Here are some things you can do for FREE:

1)Listen to every podcast on BP that is about wholesaling!! Listen several times and take notes.

2)Read every article on here about wholesaling from wholesalers

2)Make up some "We Buy Houses" flyers and pin up at local grocery stores, dry cleaners, bus stops, etc (PM me for a copy you can edit, if you want)

2)Go to all of your local REI meetings/meetups to network with cash buyers. Since your in the ATL area, I'm pretty sure you can go to a different one every day of the week. In my market I can go to about 15-20 different meetings in a given month.

a)Spend some money (Not to much, try vistaprint) on business cards, and pass those out

b)Usually at the meetings you have the opportunity to stand & introduce yourself to everyone - "Hi I'm Ammon, a local BIRD-DOG in the area & I'm looking for cash buyers or wholesalers to help out"

1)Yes I said Bird-dog!! Why not Wholesaler?!? Because if you are having trouble getting started, don't know where to turn, then being a bird-dog and learning FOR FREE form someone MAY be your best bet.

2)You should be swamped with enough cashbuyers/wholesalers to learn the business for FREE

3)Work with someone that will walk you through how they go from A-Z.

Hi Ammon and welcome to BP, you sound ready to go but it seems you are going in 50 different directions and overwhelming your self,there is a lot of learning in this business. stick to one topic or area such as wholesaling for instance,laern the basic steps in wholesaling focus on one thing in wholesaling like just target vacant houses,FSBO'S,absentee owners, and learn to get your feet wet and work your way to other areas of REI. some times it means baby steps. Or like mentioned above start birddogging. You need to get the word out about you and what you do( REI meetings,handing out business cards,placing bandit signs, ect). if you have $6,500 to spend to a guru you can spend that on your business and marketing. Go to meetup.com and find out where and when there are REI meetings in your area. Before getting anything under contract have a list of cash buyers lined up first,i learned that mistake quick. I hope this was help full and good luck. Gerald McGee

Originally posted by @Ammon Eli Moshe :

thankyou very much for your speedy response! I am interested in any strategy that will help me to become free from jobs...I have also contacted a real estate investing coach...He charges 6,500 for the entire year...Is this a practical approach..Im stuck and I am stupid when it come to this..I dont know which way is up or who is truthful or not...I do not want ro waste any more time in my life on hope dreams...I need and want results.  I am hurting mentally.  I need direction.

I don't think there's anything wrong with coaching and I'm sure it can help a lot. I wish I had a mentor and am actively searching for one now. Everyone needs a mentor. All that being said, this all ultimately boils down to your actions. You obviously don't know what you don't know. A mentor can not only help you figure out what you don't know but also help you get more educated. 

On another note, you can also figure out all this stuff on your own. Real estate investing, especially wholesaling, basically boils down to taking massive amounts of action. I would recommend you look for free resources online and check out some of the wholesaling gurus out there like Sean Terry, Todd Toback, Stephanie Davis, John Cochrane, Larry Goins, Cameron Dunlap, Kent Clothier, Ron Legrande, etc. and read through their free materials. Many of these people have other ways to consume the information as well including podcasts, YouTube videos and more. 

There are also tons of free educational materials here on Bigger Pockets. I think there's like a "Low and No Money Down" free e-book they make available. 

Instead of investing the $6,500 in a mentor who's basically just going to make you feel good, I'd read through the tons of free stuff out there, network on bigger pockets and get your start that way. You can take that $6,500 and use it for education, marketing, etc.

If you practice wholesaling like 95 percent of people on BP and not actually buying the property you will be practicing real estate without a licenses but that doesn't matter because you won't get caught and the government doesn't have the resources to go after you. You simply sign a contract that says you are buying the property and someone else can assume the contract.  Then convince yourself you now have an ownership interest in the property and that this protects you legally. If a realtor does this it is called a "net listing" an it is illegal, they would be fined, loose their license, and could go to jail. But, you are a wholesaler so the rules don' t apply to you!  You don't have to have any ethics! You don't need earnest money. The law doesn't apply to you! You are so much smarter than the dummies who have gotten their brokers license and actually studied real estate law. Good luck!