Wholesale Ambitions of a 20 Yr Old College Student at UCSB (Help)

44 Replies

To begin my discussion I need to clarify that I am new to Bigger Pockets. Also, I need to clarify that I am an ambitious young student determined to have one million dollars in my bank account by 24. I am 20 years old from Philadelphia, PA; so realistically I need to pull in $250,000 a year to reach my quota. However, my discussion is not about that. I could care less whether or not others believe in my dreams. I believe in myself and I have heavily substantial motivational factors in my life to push me towards success, so I will not give up regardless of what you have to say to me. 

 I moved to Santa Barbara, CA for in hopes of becoming successful. I picked Santa Barbara for the university of course, but I would be lying if I did not say that the thing that attracted me the most was the wealth and lifestyle. The lifestyle out here is amazing; especially if you can afford it. So living amongst the wealthy is a bit of a motivational taser to me. I see kids riding around in Lambo's and it makes me HUNGRY($$$).  I did not come from an insanely wealthy family. In fact, my father works his *** off to support my family and he is going to be 60 years old on Thanksgiving. I need to pay him back for everything he's done for my family and I. One day I will pay off his mortgage and he will be able to retire, and relax for once in his life. After being introduced to the concept of wholesaling the other day from a close friend of mine it has been the only thing on my mind. After doing some research I am hooked on the idea of making profit with assignment contracts. I have been listening to the podcasts and researching how to go about the process, but I am still a bit confused on certain aspects.

At this point in time I have limited knowledge about wholesaling; I know the basic idea of it though:
-Finding a motivated seller with a house,

-Offering them a below market value on the property so that I can profit

-Having the seller then sign an Assignment Contract 

- Bringing that assignment contract to an investor 

-And profiting from the deal made with the investor 

Basically, I want to know what kind of Knowledge/Advice you guys out there in the Bigger Pockets community could offer me so that I can turn my dreams to realities. By that I mean tell me anything and everything I need to know about wholesaling so that I can learn. Some general questions I have are:

-How should I go about wholesaling in my current situation? 

-What are the first steps I should take to organizing the process?

-Where do I even begin?

-What type of houses should I look for? NOD's?

-Where do I market to find motivated sellers? 

-How to make motivated sellers come to ME?

-How do I present myself to a potential seller so that they trust to work with me?

-How to negotiate a price with the seller so that we reach a comfortable common ground?

-How do I properly fill out an assignment contract once I have the seller hooked on a price?

-What type of investors should I present my assignment contracts to? 

-Should I stick with one investor and build a relationship with them? 

... I have plenty of questions and do not know where to even begin. If anyone out there can offer me some advice or guidance it would more than appreciated. Please do not be afraid to tell me that I am misinformed on certain things, I do not take offense to criticism, I welcome it. However, if you are going to comment trying to discourage me then save it, because it won't affect me. You see, I don't want to be successful...  I WILL be. Any and all help is welcomed!!!!!! THANK YOU!!!!!!

Best, 

Blake Dalessio 

Hi Blake,

Welcome to BP and investing. I don't think you'll get many people shooting down your dreams here. This is a great community. You'll probably find that in the general public though, so keep your head up and keep going for your goals. Quantifying the steps is a great way to get there. 

I can tell you that SB County is a tough market for wholesaling. Of course it can be done, but it takes work and persistence. I did a year's worth of direct marketing, yellow letters and post cards and only had a few calls, none were motivated at all, so no deals through that route. One person even got my broker to fire me!  

There are opportunities, you'll just have to work hard to find them. Talk to everyone and tell them you're buying houses, something will shake out.

There are a lot more experienced wholesalers on here so I'll let them chime in with their expertise. 

Allen

Allen Maris, Real Estate Agent in CA (#01918765)

There is plenty of info on wholesaling in the archives of this site. Learn all you can by reading everything you can find.

My advice, honestly, if you want to succeed in a short time frame as you suggest you need to quit school. You can not do both and be successful at either. Each will take your full attention. You can not succeed with half measures. Ambition will not take you very far if you are not focused. Time is a  limiting factor, make your choice.

Originally posted by @Allen Maris :

Hi Blake,

Welcome to BP and investing. I don't think you'll get many people shooting down your dreams here. This is a great community. You'll probably find that in the general public though, so keep your head up and keep going for your goals. Quantifying the steps is a great way to get there. 

I can tell you that SB County is a tough market for wholesaling. Of course it can be done, but it takes work and persistence. I did a year's worth of direct marketing, yellow letters and post cards and only had a few calls, none were motivated at all, so no deals through that route. One person even got my broker to fire me!  

There are opportunities, you'll just have to work hard to find them. Talk to everyone and tell them you're buying houses, something will shake out.

There are a lot more experienced wholesalers on here so I'll let them chime in with their expertise. 

Allen

 Thank you Allen! Your feedback is very encouraging I appreciate the response. What areas around SB County have you had luck with or do you suggest I should look at instead? 

Originally posted by @Thomas S. :

There is plenty of info on wholesaling in the archives of this site. Learn all you can by reading everything you can find.

My advice, honestly, if you want to succeed in a short time frame as you suggest you need to quit school. You can not do both and be successful at either. Each will take your full attention. You can not succeed with half measures. Ambition will not take you very far if you are not focused. Time is a  limiting factor, make your choice.

 Greg thank you for your perspective! I am not going to drop out of college, but I do understand where you are coming from. However, I believe that motivation can push people to achieve the extraordinary. School is very time consuming, but it does not take that much time out of my life in particular. Also, I am a full time student with a 4.0 so do not think that I am a slacker. 

@Blake Dalessio , I think you can find properties all over SB and Ventura county. Santa Barbara proper is a bit difficult since things get snapped up pretty quick, so there's not a lot of motivation to sell for a big discount. I'm more focused on the Santa Ynez valley since that's close to home, Lompoc and Santa Maria. I've talked with other investors that go further north closer to SLO, but that's getting too far for me to drive if I end up fixing. I just don't have the motivation to drive an hour everyday to be at a property. 

I'm also investing in Fresno area, but only because my dad is there and is my boots on the ground dealing with that stuff.

Allen Maris, Real Estate Agent in CA (#01918765)

@Blake Dalessio Good thing you're starting young. I started studying up at your age but wished I pulled the trigger sooner. Closed my first one at 23.  What I realized in hindsight was I could have started a lot sooner. Send me a PM, maybe we can hop on the phone and talk a little bit about your markets and how to get started. I'm from Ventura County so we're practically neighbors. LOL

Good luck and forget the Lambos, they're non producing assets that will earn you the hatred of the majority.  The "high" on landing an amazing deal on a property and capitalizing on it, is much much better. 

"I see kids riding around in Lambo's and it makes me HUNGRY($$$)"

This post has been removed.

@Blake Dalessio Welcome to BP!! This is the number one platform in the world to learn everything and anything you want in regards to REI in my opinion. I feel the best way to get started is to partner up with someone who is already doing it and help add value to their current operation. I do not know your market out their but I do know that SoCal is extremely competitive. Find an investor who already has his roots planted and just learn as much as you can. In my personal experience, it wasn't until I found great partners that my business and knowledge truly started to expand. There is no one shot, sure answer for how to get started, but I think focusing on one aspect and beginning there will help you stay focused. Good Luck!

@Blake Dalessio  Welcome to BP!  I've lived in SB for 17 years now, although I invest in Vermont, where I'm originally from.  Agreed, the lifestyle here in pretty amazing but the prices are high and the demand is crazy.  As you're aware, the median price is just over $1M and anything under $1M has open houses so full it's hard to talk to the listing agent.  

There's a monthly real estate meetup (check Meetup.com) at the Fess Parker hotel on Saturdays so I'd recommend checking that out to network.  I do believe wholesaling in town is difficult but consider Lompoc or Santa Maria where the prices are much lower.

Good luck!

 - Tom

@Allen Maris Yes I have been starting to think that maybe I should focus on areas surrounding SB county to find better deals. There are real estate investment groups in santa barbara I plan on getting in touch with to build a buyers list however. Also, I am going to join the Santa Barbara Real Estate Investors Association to meet some more knowledgeable individuals who can guide me in the right direction. I am willing to work in any region surrounding SB County because I am mainly focused on wholesale at the moment which would not require me to fix. Instead I would like to find my buyers first, then when I have motivated sellers I can assign the contracts to my buyer much easier since he will know my gameplan and work with me behind the scenes to keep my seller happy. (win-win-win)

Originally posted by @Blake Dalessio :

To begin my discussion I need to clarify that I am new to Bigger Pockets. Also, I need to clarify that I am an ambitious young student determined to have one million dollars in my bank account by 24. I am 20 years old from Philadelphia, PA; so realistically I need to pull in $250,000 a year to reach my quota. However, my discussion is not about that. I could care less whether or not others believe in my dreams. I believe in myself and I have heavily substantial motivational factors in my life to push me towards success, so I will not give up regardless of what you have to say to me. 

 I moved to Santa Barbara, CA for in hopes of becoming successful. I picked Santa Barbara for the university of course, but I would be lying if I did not say that the thing that attracted me the most was the wealth and lifestyle. The lifestyle out here is amazing; especially if you can afford it. So living amongst the wealthy is a bit of a motivational taser to me. I see kids riding around in Lambo's and it makes me HUNGRY($$$).  I did not come from an insanely wealthy family. In fact, my father works his *** off to support my family and he is going to be 60 years old on Thanksgiving. I need to pay him back for everything he's done for my family and I. One day I will pay off his mortgage and he will be able to retire, and relax for once in his life. After being introduced to the concept of wholesaling the other day from a close friend of mine it has been the only thing on my mind. After doing some research I am hooked on the idea of making profit with assignment contracts. I have been listening to the podcasts and researching how to go about the process, but I am still a bit confused on certain aspects.

At this point in time I have limited knowledge about wholesaling; I know the basic idea of it though:
-Finding a motivated seller with a house,

-Offering them a below market value on the property so that I can profit

-Having the seller then sign an Assignment Contract 

- Bringing that assignment contract to an investor 

-And profiting from the deal made with the investor 

Basically, I want to know what kind of Knowledge/Advice you guys out there in the Bigger Pockets community could offer me so that I can turn my dreams to realities. By that I mean tell me anything and everything I need to know about wholesaling so that I can learn. Some general questions I have are:

-How should I go about wholesaling in my current situation? 

-What are the first steps I should take to organizing the process?

-Where do I even begin?

-What type of houses should I look for? NOD's?

-Where do I market to find motivated sellers? 

-How to make motivated sellers come to ME?

-How do I present myself to a potential seller so that they trust to work with me?

-How to negotiate a price with the seller so that we reach a comfortable common ground?

-How do I properly fill out an assignment contract once I have the seller hooked on a price?

-What type of investors should I present my assignment contracts to? 

-Should I stick with one investor and build a relationship with them? 

... I have plenty of questions and do not know where to even begin. If anyone out there can offer me some advice or guidance it would more than appreciated. Please do not be afraid to tell me that I am misinformed on certain things, I do not take offense to criticism, I welcome it. However, if you are going to comment trying to discourage me then save it, because it won't affect me. You see, I don't want to be successful...  I WILL be. Any and all help is welcomed!!!!!! THANK YOU!!!!!!

Best, 

Blake Dalessio 

I'm a UCSB grad.  Go Gouchos!

I think the best thing you can do at this point is (1) learn as much as you can by reading everything you get your hands on and attending investor group meetings, and eventually (2) starting your own meetup group so you can place yourself in the middle of real estate investing flow.  Once you accomplish these, (2) will position yourself to adding value on deals you may hear about.

Nothing in life is free. You must give to receive.  At this point in your life, you must figure out what it is you have to give...money, capital, deal sources, networking forum, energy, hard work, etc... You always have something you can give/trade for what you want....Whatever it is, figure out what you can GIVE! 

It will not be easy, but if you stick with it, I'm confident that you'll find REI worthwhile.

Growth always works, like nature, according to established lines (ex. seeds to not turn into trees overnight; they evolve always according to similar stages of growth).

Remember...

Definite Plans + Faith + Emotion + Action = All human accomplishment

Definite Plans: your mental roadmap

Faith: Believing in yourself and others and that you can accomplish your goal

Emotion: You must feel strongly / KNOW you will accomplish your goal

Action: Plans not applied through action leads nowhere.  The world is most in need of people with plans who are willing and capable of executing them.

@Blake Dalessio - My advice is to wholesale as close to home as possible but in an area where there is 'some' desperation so deals will be easier to come by and you'll have more opportunity out of the gate. OR pair up with someone who actually is doing deals in SB and surrounding counties and offer your services to them. Meaning you'll take over sending their mail, going on appointments, doing marketing, doing whatever free's up more time for them. Having a mentor or partner will expedite your learning curve dramatically so you waste less time making mistakes.

I'm in a similar situation where I live in SF but wholesale in the central valley because SF deals are tough to find. But there are plenty of vacant homes in the central valley. The tricky part is the further you get away from home the harder it is to control your business unless you setup systems and have dependable boots on the ground or know someone there you can trust. Also it takes time to setup new connections in new cities, so be thinking about the future when you choose your market. Is this where I want to be driving, investing my time, energy and money, do I plan on moving here after school to continue ramping up my business? 

I'd post on meetup groups, craigslist, etc looking to partner up with someone for awhile and show you the ropes. Or if you have the cash you could hire a mentor, but the main point is just to take massive action and keep failing forward and it'll happen.

Good luck man!

@Josh Justiniano Thanks for the response Josh. I figured that if I don't take action now I never will. Better for me to learn from my mistakes now instead of sitting around speculating, right?! I just sent you a PM; lets talk soon neighbor!

Originally posted by @Martin Z. :

Good luck and forget the Lambos, they're non producing assets that will earn you the hatred of the majority.  The "high" on landing an amazing deal on a property and capitalizing on it, is much much better. 

"I see kids riding around in Lambo's and it makes me HUNGRY($$$)"

 I agree Martin, Lambos may not make me any money. However, if I pull up to a business meeting in a Maserati Gran Turismo I believe it will highlight the professional appeal I am trying to give off. Also, I agree that the "high" you speak of is probably an amazing feeling. I have yet to make any deals so I can not say I understand what you mean, but I am definitely in pursuit of it that is for sure. 

Originally posted by @Blake Dalessio :
Originally posted by @Martin Z.:

Good luck and forget the Lambos, they're non producing assets that will earn you the hatred of the majority.  The "high" on landing an amazing deal on a property and capitalizing on it, is much much better. 

"I see kids riding around in Lambo's and it makes me HUNGRY($$$)"

 I agree Martin, Lambos may not make me any money. However, if I pull up to a business meeting in a Maserati Gran Turismo I believe it will highlight the professional appeal I am trying to give off. Also, I agree that the "high" you speak of is probably an amazing feeling. I have yet to make any deals so I can not say I understand what you mean, but I am definitely in pursuit of it that is for sure. 

Yes, Blake...I would suggest that you read the "Millionaire Next Door".  The wealthiest people, and I would argue the wisest, often do not flash their cash.  I personally know a guy who is worth over 110 million who lives here in Berkeley.  He owns buildings all over Berkeley and Oakland.  He shows up to look at deals with dirty jeans and a sweatshirt.  You could almost mistake him for a homeless person...but he's worth $110 million.  Self-confident people do not need to flaunt wealth.  They are personally motived, not externally motivated (ex. internal score card to quote Warren Buffet who still drives a Lincoln Towncar, not a "Lambo").

Often those who flaunt wealth...are actually not wealthy at all, but have a life that is financed by debt.

The reality is that most of those people are the working poor. They may drive a Mercades, but have barely any savings and little to no wealth to speak of.  Living below your means is the first lesson you should learn as a real estate investor.

Life is full of duality.  If you don't yet see that, I'm confident that you will.

@Shawn Connors Thanks for the welcoming Shawn! It is nice to see someone comment from my hometown area. I grew up in Norwood, PA which is not too far from Downingtown. I believe that meeting partners who I can work with will certainly enhance my knowledge in RE as well as open up doors for me to pursue more opportunities. I am going to contact the top cash buyers in each REI group near me and extend my interests to them to see if they are interested in working together. Also, I plan on checking out RE groups and associations in my area which offer weekly / monthly investor meetings so that I can actually discuss some of the ideas / concerns I have. Is there any way in particular that you think I should express my interests with these investors? I am not sure exactly what I should say to them to let them know I am a serious and committed about working together.

@Tom S. Thank you for the info Tom I will definitely be going to those meetings at the Fess Parker! Amazing how the BP community has given me so much in so little time, wow. It seems that everyone I am talking to insists that SB county is locked down in regards to finding good deals. I have been hearing I could find some better deals in Lompoc as well. I have few questions for you if you do not mind me giving you a PM. As you are a seasoned vet in Santa Barbara for 17 years now I believe you could ameliorate some issues I am having regarding my analysis of the market

@Blake Dalessio I feel that the best thing you can offer is to help add value in some way.  Don't go in an be the person that is a time waster or tire kicker.  Go in and tell them your goals and aspirations and then ask them how you can add value to their operation.  Be open and honest and if what you say is truly honest people will be able to tell and will help you.  Always try to be of service and be proactive to show people you are serious.

@Jon S. Thank you for the insight Jon! I really like your comment about how to reach Human Accomplishment; amazing. You are right, nothing in life is free. I like how you explained that you must give to receive. It is true, and it is making me realize I must approach investors much different than I had thought. I am going to start narrowing down what it is that I can bring to the table so that I can concentrate on what is most important. 

@Michael Merritt Thanks Michael I see what you mean by "Is this where I want to be driving." I know I certainly need to pair up with someone to show me the ropes. I feel like I am ready to dive in and get my hands dirty at the same time though. I am going to look for a solid mentor who can expedite my learning curve as you said. 

Originally posted by @Jon S. :
Originally posted by @Blake Dalessio:
Originally posted by @Martin Z.:

Good luck and forget the Lambos, they're non producing assets that will earn you the hatred of the majority.  The "high" on landing an amazing deal on a property and capitalizing on it, is much much better. 

"I see kids riding around in Lambo's and it makes me HUNGRY($$$)"

 I agree Martin, Lambos may not make me any money. However, if I pull up to a business meeting in a Maserati Gran Turismo I believe it will highlight the professional appeal I am trying to give off. Also, I agree that the "high" you speak of is probably an amazing feeling. I have yet to make any deals so I can not say I understand what you mean, but I am definitely in pursuit of it that is for sure. 

Yes, Blake...I would suggest that you read the "Millionaire Next Door".  The wealthiest people, and I would argue the wisest, often do not flash their cash.  I personally know a guy who is worth over 110 million who lives here in Berkeley.  He owns buildings all over Berkeley and Oakland.  He shows up to look at deals with dirty jeans and a sweatshirt.  You could almost mistake him for a homeless person...but he's worth $110 million.  Self-confident people do not need to flaunt wealth.  They are personally motived, not externally motivated (ex. internal score card to quote Warren Buffet who still drives a Lincoln Towncar, not a "Lambo").

Often those who flaunt wealth...are actually not wealthy at all, but have a life that is financed by debt.

The reality is that most of those people are the working poor. They may drive a Mercades, but have barely any savings and little to no wealth to speak of.  Living below your means is the first lesson you should learn as a real estate investor.

Life is full of duality.  If you don't yet see that, I'm confident that you will.

 Extremely smart outlook you have here. I do not want to flaunt wealth. I want to be respected by others  and acquire power so that I can execute deals with ease. 

You can do this.

1. Have the ability to last, meaning pay your bills and more importantly your marketing.

2. Market like a madman. Starting in December we are cranking up to 40k mailers per month. 

3. Protect your dreams.

4. Find a mentor.

@Bradley Smotherman Thanks Brad, I will have to write this one down. What type of marketing strategies do you suggest I start off with? 

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