Questions about Wholesaling

10 Replies

Good Morning everyone, I am a 28 year old from Baltimore, MD. I have a beautiful wife and a silly but very lovable four year old daughter. I have been a police officer for almost four years now and I am looking to gain financial freedom. Based off of the research that I have done, I have come to find out that real estate investing is one of the most prominent ways to achieve that freedom that I am seeking. Furthermore, my studies have taken me to the area of Wholesaling, which is said to be an easy way to becoming an investor. I am not a naive person at all and I know that it will take a lot of time, patience , and consistency as far as marketing, building a reputation, buyer’s list, etc. The question that I am asking is, is Wholesaling, if done correctly with integrity still the best way to begin investing? If so, are there any good REIA’s that I would be able to attend to network and start making the right connections? Mentors? I just want to be a social butterfly in Real Estate, I am looking to learn all that I can and make real life changing money along the way.

@Artavius Williams Wholesaling is NOT easy. It is hard to find good deals.  It is really hard to find  deals so good both you and the investors you sell to can make money. 

People say wholesaling is a good way to start because it can theoretically be done with virtually no money. That is not realistic as you need money for marketing etc.

You should find the best way for YOU to start. It will be different for different people.  It depends on your goals, your resources; mainly time, knowledge and money and your tolerance to risk. 

There are lots of investing groups in the area. Google REIA or real estate meetup.

You also need to know your state laws  and what is legal or not legal. 

I am of the camp that wholesalers should have a LOT of experience in real estate. They need to be good at locating deals, contracts, finding and vetting buyers, estimating repair costs, estimating ARVs, etc... 

Thank you everyone for the timely response and I expected those exact answers. I am not looking for the get rich quick schemes because unless you hit the lottery I believe that there is no such thing. However, I am re-assured that Real Estate is the Avenue that can generate great wealth if the work is put in over time. Thank you all again.

As with most things related to real estate, just dive right in!  Network, tour neighborhoods, learn the real value of properties block by block, ask investors what kind of deals they prefer, make a list of contacts (the sooner you do this, the better!).  Then just play with the numbers and practice.  We've all wasted hours and money on deals that never work out.  It sucks, but it's the way this business is.  The ones who keep going are the ones who make money doing it.  BP is a HUGE resource.  Goodluck!

I agree with what everyone has said, but yes remember it is hard work. A very small amount of people will actually sell that low.

A lot of people try to do this, my recommendation is to commit to a sector of real estate and really get good at it. Any strategy is possible to do well in!

@Artavius Williams , do you really want a second job (which is what wholesaling is)?

The point is: if you have the income/credit to be able to close on any good deal yourself (which Wholesalers should be able to do) if you can't find a Buyer quickly enough, then why not just buy those good deals - yourself!

Why should you help other buyers make more money out of deals than you aspire to? (ie. Because, if it's not a good enough deal for them, they won't buy off you!) All the best...

Originally posted by @Brent Coombs :

@Artavius Williams , do you really want a second job (which is what wholesaling is)?

The point is: if you have the income/credit to be able to close on any good deal yourself (which Wholesalers should be able to do) if you can't find a Buyer quickly enough, then why not just buy those good deals - yourself!

Why should you help other buyers make more money out of deals than you aspire to? (ie. Because, if it's not a good enough deal for them, they won't buy off you!) All the best...

 That was my plan with wholesaling. I'm actually looking for my own deals first (and maybe some listings). If I can give one away for a fee, great, but otherwise I'm not going into it unless I'm willing to make the purchase myself. But that requires one to be able to rehab and/or rent out, which most newbies don't want to mess with.

Originally posted by @Shawn Clark :
Originally posted by @Brent Coombs:

@Artavius Williams , do you really want a second job (which is what wholesaling is)?

The point is: if you have the income/credit to be able to close on any good deal yourself (which Wholesalers should be able to do) if you can't find a Buyer quickly enough, then why not just buy those good deals - yourself!

Why should you help other buyers make more money out of deals than you aspire to? (ie. Because, if it's not a good enough deal for them, they won't buy off you!) All the best...

 That was my plan with wholesaling. I'm actually looking for my own deals first (and maybe some listings). If I can give one away for a fee, great, but otherwise I'm not going into it unless I'm willing to make the purchase myself. But that requires one to be able to rehab and/or rent out, which most newbies don't want to mess with.

Mess with it! [Everyone who does it is a newbie - their first time!] All the best...

Originally posted by @Brent Coombs :
Originally posted by @Shawn Clark:
Originally posted by @Brent Coombs:

@Artavius Williams

Mess with it! [Everyone who does it is a newbie - their first time!] All the best...

 Haha, I have! I've done several rehabs/flips. But I came from a construction background. Not sure I would've had the guts to try it otherwise.

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