Investor · MI · Member since 2016 · 82 posts · 16 votes
I have recently started real estate investing. I have purchased one buy and hold duplex so far and I would like to switch from my full time job into full time wholesaling. I am looking for advice or anyone who could share their knowledge with me on wholesaling. I have done some research and have educated myself on how to start wholesaling but I feel as if learning from someone with first hand experience would be valuable.
Real Estate Investor · Buffalo, NY · Member since 2013 · 227 posts · 318 votes
9y
Hey @Luke Diem Here are a few suggestions to get you think. First, learn the process which could be explained in these simple steps:
Step 1: Market to motivated sellers
Step 2: Sign purchase contract with the seller
Step 3: Find cash buyer
Step 4: Sign contract with cash buyer for a higher price and collect 2k deposit
Step5: Close Transaction via Assignment or Double Closing and Collect your check
Second, learn has much as possible about the 5 skill needed to be a pro at wholesaling. They are marketing; estimating repairs; contracting; appraisals; and negotiating.
Real Estate Investor · Buffalo, NY · Member since 2013 · 227 posts · 318 votes
9y
Hey @Luke Diem Here are a few suggestions to get you think. First, learn the process which could be explained in these simple steps:
Step 1: Market to motivated sellers
Step 2: Sign purchase contract with the seller
Step 3: Find cash buyer
Step 4: Sign contract with cash buyer for a higher price and collect 2k deposit
Step5: Close Transaction via Assignment or Double Closing and Collect your check
Second, learn has much as possible about the 5 skill needed to be a pro at wholesaling. They are marketing; estimating repairs; contracting; appraisals; and negotiating.
Investor · Orlando, FL · Member since 2016 · 1k+ posts · 780 votes
9y
Hi Jose, Welcome to BP.
My advice to new investors is to start wholesaling properties. This is the quickest and best way to get started with the least cost.
First pick a neighborhood that you are either in or close to. Driver around all the streets and look for vacant houses. There should be some. Then look in the county assessors website to find the owners. it should give their name and mailing address. Send them a letter telling them you found their house to be apparently vacant. But if it is obviously abandoned, say so in the letter. Tell them you will pay them cash for a quick close.
Many times the owners don’t update their mailing address with the county so you may get the letters returned. I use beenverified.com to get the most updated info. It costs me $24.95 a month but it is well worth it because it also gives me email addresses and phone numbers.
If you are going to buy the property, fix it up and then either sell it or rent it then you are through.
But if you want to wholesale the property to another investor, then contact a local RE Agent to give you a list of all the houses in that neighborhood that have sold in the last 5 years with all cash. This typically is investors. Then again go to the assessors website and find their name and mailing address. And again use beenverified.com to get the best and latest contact info.
Once you get a response from the seller of the vacant house, negotiate a deal to buy it for all cash. Then immediately contact all the cash buyers you just found that buy properties in that neighborhood and tell them about the house and would they be interested in buying it.
Once you have done all that with that neighborhood, go to the next one and 'rinse and repeat.'
Investor · Novi, MI · Member since 2016 · 72 posts · 31 votes
9y
Hello @Luke Diem first get a good understanding of the process. second dive in. start marketing, get the phone ringing, learn as you go is the fastest and best way. Also check some tips and shared in BLOG few weeks ago. Best of luck
Investor · MI · Member since 2016 · 82 posts · 16 votes
9y
My only fear on diving right in and getting the phone ringing is that I will waste money on good leads and calls. I work 10-12 hours a day and drive 2 hours each day to work. As you can imagine my free time is limited during the week. I would really like to become a full time wholesaler, but I would like to have a smooth transition into it and limit my risk of failure by not just quitting my job. Any recommendations for my specific situation?
Investor · Orlando, FL · Member since 2016 · 1k+ posts · 780 votes
9y
You have the perfect opportunity to find vacant houses because you are driving for 2 hours each day. Take a little extra time and drive different routes to and from work. Drive through a targeted neighborhood and look for vacant houses. You will have to spend time to make this work unless you have the money to hire people to find the houses, to do the research to find the owner and determine if it is a good deal or not, contact the owners, look at the house to determine it's condition, get it under contract, and then market it to buyers. If you don't have a list of ready buyers already then you will have to create one.
Investor · MI · Member since 2016 · 82 posts · 16 votes
9y
Stephen Anderson great idea. That would be a slower paced transition while still working full time, which is what I am looking for. I will give it a shot.
Flipper/Rehabber · Clinton Township, MI · Member since 2014 · 71 posts · 12 votes
9y
Hey @Luke Diem. I'm a wholesaler in the SE MI area and do it around my job.
@Account Closed had really good advice. I still drive for $$ looking for ugly vacant houses or houses with tax default notes or code violation notes stuck to the door. And then what I do is I send the owner a hand written letter if public records have a different address for them, or if public records say they still live there, I stop and knock on the neighbors door give them my RE Investor business card, explain that Id like to buy the house and put an owner in there so it's not ugly anymore and see if they know how to get ahold of them. I closed one of these last year doing exactly this.
If you ever wanna chat or have any questions on the topic, PM me anytime.
Investor · MI · Member since 2016 · 82 posts · 16 votes
9y
Hi guys! Just wanted to give an update, I started marketing to motivated sellers and handling the incoming phone calls. I've been to several properties and have made a few offers already, leading to one property in Brighton MI under contract. I am now trying to build up my buyers list and assign the property i have locked up. Thanks for all the advice from before everyone, it was a big help! any further advice from here?
Investor · MI · Member since 2016 · 82 posts · 16 votes
8y
Hi folks! thought I would update you on the progress. Currently have closed 5 wholesale deals and may close 8 total by the end of the month if all goes well. Also am now Wholesaling full time. Thanks everyone for the advice! Happy investing!!
Traverse City, MI · Member since 2014 · 15 posts · 0 votes
8y
Hey Luke. That’s awesome! Do you still find wholesale deals in the Genesee or Livingston county areas? I would like to get some buy and hold properties around that area.