New To Wholesaling and Would Like Advice

New To Wholesaling and Would Like Advice

Pittsburgh, PA · Member since 2015 · 5 posts · 0 votes

Hello all,

I made a post about two years ago and I am back for the first time since then. I am in the process of graduating from college with a Business Management degree and a Marketing concentration. I have always been interested in real estate and have been reading and learning things about wholesaling. I understand all the general concepts of wholesaling like; Finding a motivated seller, obtaining a purchase and sale document, finding the cash buyer and assigning the contract to complete the deal. However, I am still cautious in going into all of this alone. I have no prior experience in real estate and I feel like I might make a crucial mistake or miss something that makes the deal go wrong. 

I have many questions before I actually go out and try to close deals:

1. How will people trust me because I am a first-time buyer?

2. How do I find a good attorney and what types of questions should I have for him/her?

3. Where do I find good contracts to use and what clauses should be included in them?

4. How do I know a property is a good deal, even if the seller is motivated? (Why hasn't someone else took advantage of this deal?)

5. What do I do if I can not find a cash buyer?

6. Does the seller and cash buyer know that I am a wholesaler?

7. What/ who are all the necessary documents, people, agencies, etc.. should I have on board with me?

I really appreciate the help. If anyone is in the Pittsburgh area and is an experienced wholesaler, I would love to talk to you. I am also looking for a mentor or guide through my first deal.

Again, thank you for all the help.

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Wholesaler · Dayton, OH · Member since 2016 · 252 posts · 227 votes
9y

Ignore the negativity.

You're asking good questions, but what you really need to do is just build your broad base of knowledge. I always recommend checking out some podcast and YouTube videos to get a better idea of the process, talking to sellers, etc.

Here are a few to check out:

Investor Grit podcast (Tom Krol and Cody are awesome)

Sean Terry YouTube channel and podcast (podcast isn't updated anymore, but back episodes are great)

Also check out Tom Krol's appearances on other podcasts like the Bigger Pockets podcast.

https://www.youtube.com/results?search_query=tom+k...

This won't teach you everything, but it will at least fill in some of the gaps. Get some of this knowledge under your belt, then start asking more questions here in the wholesaling forum. You'll start to understand it a lot better.

If you need specific help send me a PM and I'll try to help you.

See this reply in the discussion

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  • Real Estate Investor · Darien, IL · Member since 2016 · 71 posts · 27 votes
    9y

    Id say slow down a sec. Ive been looking for a deal for about 6 months and have only offered on one possible deal. That offer was rejected.  It's not as if awesome deals will fall from the sky right into your lap. So i wouldnt stress too much about all the little details . Once I realized that, things eased up and began to make more sense.

    I too, was very nervous about this all but just asking questions on the forum and not taking any action wont get you very far. You need to get your phone ringing for sellers calling you. How you decide to do that is up to you. Without that happening its like building the best motor for NASCAR without a fuel tank. 

    Im no Pro by any means but your post reminded my of my thoughts so I felt I should reply.

    Good luck!

  • Pittsburgh, PA · Member since 2016 · 43 posts · 11 votes
    9y

    Corey,

    Your enthusiasm is great, but to Eric's point, the real world is a lot less structured. You ask good questions, but you cannot plan for every contingency. I own a company that flips houses, and we are here in Pittsburgh. I am hoping to acquire 3 new properties in the Feb/Mar time frame. If you find a good deal, let me know and I can work with you to get it closed and get you a commission. Just having some experience with the process from beginning to end will be more helpful to you then any amount of research you do. If you are interested let me know and we can figure out a commission to get you whole if we close on a house you find. 

  • Pittsburgh, PA · Member since 2015 · 5 posts · 0 votes
    9y
    Originally posted by @Eric Olsen:

    Id say slow down a sec. Ive been looking for a deal for about 6 months and have only offered on one possible deal. That offer was rejected.  It's not as if awesome deals will fall from the sky right into your lap. So i wouldnt stress too much about all the little details . Once I realized that, things eased up and began to make more sense.

    I too, was very nervous about this all but just asking questions on the forum and not taking any action wont get you very far. You need to get your phone ringing for sellers calling you. How you decide to do that is up to you. Without that happening its like building the best motor for NASCAR without a fuel tank. 

    Im no Pro by any means but your post reminded my of my thoughts so I felt I should reply.

    Good luck!

     Thanks Eric,

    I think that stress is my biggest problem. I am also very nervous about working for my first deal. I know things will not fall into my lap and the most important factor in real estate is marketing. I will take your advice and stop overthinking things so much and just do it instead.

  • Pittsburgh, PA · Member since 2015 · 5 posts · 0 votes
    9y
    Originally posted by @John Thedford:

    If you are writing contracts but are not prepared to close what would you tell the seller? Would you use the "customary" escape clauses such as "subject to partners approval" or some other slight of hand trick? I suggest you get funding lined up so that you don't have to walk away from owners that trusted you. Many scammers do and even promote dishonest practices on BP. You will even find some of these unlicensed brokers bragging the only thing they need is a drivers license (forget money, integrity, fraud, etc).

     Hey John,

    Right now I do have some capital,however it is not enough to go and purchase a property and flip it. My problem is dealing with all the legal factors of real estate; attorneys, title companies, etc..

  • Wholesaler · Dayton, OH · Member since 2016 · 252 posts · 227 votes
    9y

    Ignore the negativity.

    You're asking good questions, but what you really need to do is just build your broad base of knowledge. I always recommend checking out some podcast and YouTube videos to get a better idea of the process, talking to sellers, etc.

    Here are a few to check out:

    Investor Grit podcast (Tom Krol and Cody are awesome)

    Sean Terry YouTube channel and podcast (podcast isn't updated anymore, but back episodes are great)

    Also check out Tom Krol's appearances on other podcasts like the Bigger Pockets podcast.

    https://www.youtube.com/results?search_query=tom+k...

    This won't teach you everything, but it will at least fill in some of the gaps. Get some of this knowledge under your belt, then start asking more questions here in the wholesaling forum. You'll start to understand it a lot better.

    If you need specific help send me a PM and I'll try to help you.

  • Pittsburgh, PA · Member since 2015 · 5 posts · 0 votes
    9y

    Thank you Steven. This actually helps a lot. I will be sending you a PM with some more questions within a couple of days.

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