Real Estate WHOLESALING questions!

13 Replies

Hello all!

My name is Ethan and I am new to BiggerPockets, and real estate in general. I am looking into wholesaling and want to start soon. I have some questions regarding the process. Also, if you were to start over with $0 and no experience, how would you get the leads and investors? thanks and I look forward to any help I can get! 

I would get a job and spend less than I make and make $0 become more than $0. Then I would buy a chromecast to us with my smartphone and sit in front of my tv during all of my free time and watch 100 hours of videos on youtube after typing into search "find motivated sellers" or "sean terry" or "joe McCall" or "build buyer's list" or "wholesaling real estate"

Yea, I wouldn't quite my job to go and chase wholesaling. Because your going to need some sort of capital to market your brand to sellers and buyer. One thing I would redo over.

I read this kind of post far too often here on BP.  Someone reads something or hears a podcast or webinar about wholesaling and with little more knowledge than knowing what wholesaling is decide to "try" it.

Hey.  I have an idea for you.  Read a book or listen to a podcast about how to fly a plane, and then jump in the cockpit, taxi down the runway, throttle up, and "try" a takeoff.

Sound silly?

If you want to get started in wholesaling and have zero experience and zero money, the smartest thing you can do is "bird dog" for the dominant wholesaler in your market.  Become one of the flight crew.  

You will learn with zero risk and earn while you do.

Hello Rod,

As a Newbie looking to wholesale I would like to thank you for your honest input. I have been watching,reading,listening, to investors, REI groups,podcasts, etc and I am still hesitant as there are things I do not understand and am not comfortable executing, yet i hear the same thing over and over You just have to do it. It is really nice for someone to validate and point out the obvious of just jumping in.

                                                                             Thank you   Kimberly

Originally posted by @Kimberly Volkman :

Hello Rod,

As a Newbie looking to wholesale I would like to thank you for your honest input. I have been watching,reading,listening, to investors, REI groups,podcasts, etc and I am still hesitant as there are things I do not understand and am not comfortable executing, yet i hear the same thing over and over You just have to do it. It is really nice for someone to validate and point out the obvious of just jumping in.

                                                                             Thank you   Kimberly

 What I am in the process of doing is to create a mindmap of every step of the process and then write down every question you have about every part of it and ask them all on here!

Hi @Ethan Lewkowicz

I think it's awesome you are thinking about getting into wholesaling. I'm sure everyone means well, but I hope you don't get discouraged. What you are doing now is the best thing to do: Taking action. You are asking this community to help you in beginning your journey. So if wholesaling is something you want to do, then start taking MASSIVE action and start making moves. It's a simple business...not easy...but simple. 

I'm only a less than two months in myself but I've decided to jump in 100% and build a business out of wholesaling. Not the road for most, but I counted the cost and jumped in. I've made incredible progress, surrounded myself with people who are wholesaling and actually doing deals, and I am about to get my first property under contract. Why? Because I not only educated myself (podcast after podcast, blog after blog, asked questions), but I just went out and just started. @Kimberly Volkman I hope this encourages you as well. But you just have to commit first, take action, and learn as you go. It doesn't happen overnight. So I just wanted to bring a positive spin. And take advantage of the wisdom of those like @Dev Horn . :)

Quick ideas with "$0": Create Bandit signs (at your own discretion), Utilize BP marketplace (Plus & Pro Accts) to advertise you are looking for Cash Buyers in your area, Attend as many REIA or meetup groups in your area to build your network, "Drive for Dollars" and look for distressed and vacant properties & do some research in public records to mail the owners, search craigslist FSBO... This can give you a start towards taking action!

It's been stated many times before: We (wholesalers) are in the Marketing Business. As soon as you can, begin throwing your dollars into marketing. That's how you build a business. 

Hope that helps! We can certainly connect and talk more offline if you guys would like. I hope that helps. 

@Jeff Fairchild   I want to hire you to come over and show me what cromecast is and all these other technical wonders .. how do you get on u tube?  and what is there.

in return I will fund deals for you .. since making money in RE is about transacting business I never made any money looking at stuff  :) on TV

Look forward to you helping me into the 21st century

@Account Closed no doubt your a pilot as I am..  but I do have to say there are a few who can watch a video and fly a plane.. think of the barefoot bandit.. up here in the northwest.

he broke into Cirrus aircraft ( of which I own one) and flew them.. and he took one from here NW all the way to florida I think.. and kind of crash landed in a swamp.. but he also took some I think from Friday Harbor ( one of my favorite 500 dollar hamburger runs).

how the kid did not kill himself I will never know.. LOL.

But back on RE.. wholesaling has a failure rate for those on BP who think they can do it of probably 95% who try.. the only ones that make money are the vendors who sell them lists yellow letters etc.. this is a very tough business.

now if your in the rust belt this could be different because its more like the used car business and there is cars everywhere, I could roll into Detroit for instance tomorrow with a few hundred K and buy 30 houses in a day NO PROBLEMO.

so its somewhat regional as well.. So those that want to wholesale IE sell RE without a license their best chance at doing that is in very low value areas.

You can do a little  in higher value areas but its dog tough and mortatlity rate is up there with Ebola

Originally posted by @Jay Hinrichs :

@Jeff Fairchild  I want to hire you to come over and show me what cromecast is and all these other technical wonders .. how do you get on u tube?  and what is there.

in return I will fund deals for you .. since making money in RE is about transacting business I never made any money looking at stuff  :) on TV

Look forward to you helping me into the 21st century

 Ok I'll buy a chromecast for you and let you know when it arrives so I can install it for you.

It's funny, when you as a mob a question the initial human reaction is to be negative and attack. Don't do this... Don't do that... But, they avoid the question raised. I have seen this a lot on BP and in life. So, don't be discouraged but learn from what people are saying.

As far as starting in wholesaling without money, it is all about marketing and selling. You don't need money to find great opportunities nor do you need money to compile a buyers list. But, you do need to market that you buy houses and wholesale them.

I do both on Craigslist and BP. I buy about 1 house per month off of my Craig's list ad and I have about 5 investors contact me about wanting to buy properties per month. 

You can also go where other investors go: Meet ups, REIA meetings, BP and the like.

Wholesaling is not at all like flying a plane and that is not at all a good analogy. If you fail at wholesaling you won't die, you probably won't even lose any money. So, how is that a good example?

Wholesaling is the act of convincing a seller that you have the contacts to sell their house. It is also convincing your buyers that it is a good deal. The basic skill that you need is SALES.

@Jay Hinrichs was accurate in another post where he told a beginning wholesaler to get a job selling cars. He was implying "learn how to sell". I would suggest getting a telemarketing job or door to door sales. I have done both and if you can be successful at these then you can sell anything.

Good luck and Merry Christmas!

@Ethan Lewkowicz With $0 it's hard to get started, but are things you can do. I'd focus on a few things:

1. Get some money together, even if it means selling some things you don't really use anymore.

2. Take some of the money and go to your local Real Estate Meetings regularly. Find a couple wholesalers who are regularly buying deals (@Rod Yarger) . Offer to help as a bird dog or any other capacity. You don't have skills yet, so initially, it will seem like you are doing simple dumb stuff. You'll be right, but it needs to be done.

While you are at the Real Estate Meetings, get to know everyone, and what they do. 

3. Keep stashing cash

4. Keep helping others

5. Learn. Build an action plan for yourself

6. Consider an inexpensive course that covers all the steps of doing wholesale deals.

7. Implement your action plan

8. Do deals with/for the wholesaler(s) that helped you, and do your own deals.

9. Fly on your own without crashing (@Jay Hinrichs )

10. Help the next batch of people who want to learn