Real Estate Broker · Fontana, CA · Member since 2018 · 8 posts · 1 vote
Hi,
I have heard many things about wholesaling, but I don’t know where to begin. My dream has always been to invest in real estate, and I was setting myself up for that financially. Unfortunately, last year I went through some pretty hard times that dragged me into credit card debt.
Now, I am waiting for my brokers exam date and I’m excited to get started, but I don’t know where to start.
How can I make money with no capital, and with my income barely covering my credit card payments and living expenses?
Any advise will help. Also, I want to add that I have started working on a mailing list for wholesaling, but I’m not very confident in that.
Thanks,
Karla
Real Estate Investor · Buffalo, NY · Member since 2013 · 227 posts · 318 votes
8y
Hey @Karla Bazan Don’t wait. Get started and here are a few suggestions to get you thinking. 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 skills needed to be a Pro at wholesaling. They are marketing; estimating repairs; contracting; appraisals; and negotiating.
Last, spend 80% of your time marketing. For beginners I like driving for dollars because it’s concrete. You can see the distress house that is vacant and feel it. It make visualization much easier and seeing success is so important. Focus on finding the owners of those distressed houses and expect to fail. Then fail some more. At that point you are well on your way to success.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
8y
Your best bet is to pay down your credit card debt, it isn't sexy but paying it down gives you a guaranteed return of 15% or more depending on your rate, that sounds like a no brainier to me. Working for money is fine but in your current position investments should take a back seat until the credit card debt is paid off in my opinion.
Your best option is to defer any thoughts you may have regarding investing and concentrate first on getting your life back on track. Clear your debts and start saving to invest. Investing requires cash, there are other approaches to starting without cash however they are usually much more work than a iindividule is prepared for and are rarley successful.
Ypu need to be in a position of having no debt, significant savings, a good credit score and high consistant income for 2 years running to qualify for financing.
Real Estate Investor · Buffalo, NY · Member since 2013 · 227 posts · 318 votes
8y
Hey @Karla Bazan Don’t wait. Get started and here are a few suggestions to get you thinking. 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 skills needed to be a Pro at wholesaling. They are marketing; estimating repairs; contracting; appraisals; and negotiating.
Last, spend 80% of your time marketing. For beginners I like driving for dollars because it’s concrete. You can see the distress house that is vacant and feel it. It make visualization much easier and seeing success is so important. Focus on finding the owners of those distressed houses and expect to fail. Then fail some more. At that point you are well on your way to success.
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
8y
Without knowing your personal situation, my advice is to spend every waking hour working. Get 2,3,4 jobs if you have to. Until you are out of debt and have cash to invest, do nothing but work. It might be tough for a while, but it'll pay dividends in the long run.
I could not agree more with paying down credit cards. Everything cost money in this business from gas to ink for your printer. Nothing about wholesaling is "free" like you may have read somewhere.
If you insist on starting right now then what I recommend is building your buyers list and then reaching out to other wholesalers to see if they want to JV (joint venture) a deal with you. They find a motivated seller, you find a buyer. Go to your local library and it will just cost you your time. $1k or $2k here and there can really ad up. Just my two cents.
Real Estate Broker · Fontana, CA · Member since 2018 · 8 posts · 1 vote
8y
@Jason D. I would love to get another job or two, but I already work full time, and I’m a single mother. I would end up paying more in child care, and I would never see my kids. That is why I’m trying to be successful in real estate, so that I can provide for my children and be able to, eventually, set my own schedule.
Rental Property Investor · St. Petersburg, FL · Member since 2017 · 3k+ posts · 4k+ votes
8y
@Karla Bazan fair enough, everyone is in a different situation. Using real estate to get out of debt rarely ends well. It costs more money than you think (even wholesaling) and you fail 99% of the time so you need extra cash in case your first few attempts fail. I wouldn't say ignore your real estate goals until you are debt free, but my first focus would be debt pay down before spending significant money on real estate