Wholesaling Newbie/Identifying Cash Buyers

17 Replies

Okay, I feel at this point I’m on information overload with nowhere to go. I want to start wholesaling to raise capital so that I can finance my first rehab property. Financing is impossible to get and I have no personal investor contacts, so my next option is to enter the wholesaling world because it takes no to very little cash up front to wholessle properties. I was also taught that you should wholesale with the integrity/the ability to purchase a property in case you can’t find a cash buyer. Of course, I don’t have the money to buy a property either. I feel like I’m stuck, no personal financing options, don’t know any investors, and can’t secure a hard money loan until I have at least one successful property under my belt. A random investor wouldn’t trust me off the bat bc I have no experience. I would love to start wholesaling but I don’t have a list of cash buyers ready to take on a property, so heading out there with no investors, no money, and no ability to purchase a property myself would be financial suicide I think. Will someone please share any strategies and pissibilities that I may be overlooking. Any and all feedback is greatly appreciated!

@Lisa Parker  

My most important question is have you been to your local REI meeting?

You should be able to buy a property if you dont have a cash buyer, but you dont HAVE to be able to. Just understand that there could be financial consequences for backing out of a contract, as well as having that stain on your reputation.

Im positive there is a hard money lender out there who will lend to you. You may need to start an llc before some of them will lend. I have never used hard money but the lenders are out there. You will just be charged a much higher rate because of your lack of experience.

If you find a good deal and present it to an investor, whether they know you or not, if its actually a good deal, they will be interested.

@Lisa Parker I hate to be that person to throw cold water on your face but with that kind of attitude you aren't going to get anywhere in real estate. Stop focusing on the negative and dwelling on what you lack or don't have. That isn't going to serve you in any way shape or form. You need to focus on what you should be doing and asking "How can I do this?" As @Heath Ryans wisely asked have you been to your local real estate meet ups? I can guarantee 200% if you go and network and talk with others you will find someone willing to hep you, partner with or refer you to someone who can do those things. Have you looked up people BP members  in your area and message them asking for help, wisdom or advice? Have you joined all the real estate groups on Facebook in your area and posted in them and messaged the people within the group asking for help? If you are serious you will find a way, if you aren't you will just keep making excuses and let those excuses hold you back from your potential. I hope you change your mindset and view on things and start taking action. Mindset is the most important thing in this business, and relationships is a close second. Get your mind right and start going out and making friends and relationships. 

@Michael Guzik you must have me confused!  i am not negative...just felt like i am hitting a wall.  i thought i WAS asking for help by posting in this forum!  Clearly, i’m not giving up but trying to find other solutions to get started.  I’m sure it’s ok to get frustrated sometimes and post about it without getting everything but cursed out about it!  I appreciate healthy feedback so thank you, @heath ryan

No excuses made here...just looking for alternatives and seeing if i might be missing some avenues.  @heath ryan said the same thing but respectfully. There are no children on this post, ok?  

@Heath Ryans undefined

@Sanae Speed no you do not. Most meetups are open to anyone, in any career field, at any stage of life.

@Lisa Parker I'm not sure that you answered my question. Have you attended any local meetups? That will be your main contact with investors. 

Another alternative would be to contact a realtor and ask for them to pull a list of all recent cash sales in your target area. From there, filter through and find repeat buyers. You can contact them and ask if they would be interested in off market deals. Just tell them what your doing, theyll likely say yes.

Finally, tell everyone you know what you do. I would say that every third person you tell probably knows someone who invests in real estate in some form or fashion. Reach out and expand your network.

@Heath Ryans My apologies.  I just got into rei as of June of this year and just trying to get some footing.  I revently discovered rei meetups, so I’ve  been through a walk through meet up, but i haven’t been to rei meetings yet - just joined a little bit ago.  I’ve also reached out to FB members and am a part of investment FB groups.  The ones that i have reached out to thus far have either not gotten back to me or did communicate but never followed all the way through, meaning never got to have an in depth talk.  I will keep reaching out and build my network.  I will take your advice and attend more rei meetings/meetups as well and network more often.  i just passed my state test to become a real estate agent, which i’m very excited about, so once i join a brokerage, i will have even more access.  i’ve alresdy been to a meeting and will be joining within the week.  

Thank you so much for for your input and advice.  It is really appreciated!

You need to find a job in real estate. You should work for someone until you figure this out and are ready to go off on your own. Everyone assumes you can wholesale with little to no cash, but this is the biggest fallacy in real estate. Often taught to benefit the teacher. I'm sure there are people out there who started with no money and lucked into a deal, but there's also people who have won the lottery. It doesn't make it a repeatable business model. 

I can't think of another industry where people who know nothing about it want to start out by starting their own business. Every other industry you need to work in the industry first, learn everything you can, then go out on your own. 

@Lisa Parker uh oh. You left that detail out. Once your an agent, im about 95% sure you are no longer legally allowed to direct mail to people which is the main source of leads for wholesalers. Maybe someone else will chime in but im pretty positive that being an agent throws that technique out the window, even if you disclose that your an agent. Absolutely fact check that though. You don’t want to get into that type of trouble, and you dont want to not be able to direct mail if there is a way around it. 

@Heath Ryans Welp there goes that, but i will definitely fact check, but now that i’m recapturing my real estate training, you might be right.  @Nick C. That’s exactly where I am.  I think I will cool my heels just a bit, focus on becoming a great agent, and then venture out as I increase my knowledge!  So glad I made this post!  Thanks guys!!  

@Lisa Parker that sounds like a plan. Crush it as an agent. Build a massive network. Then if you decide you want to switch sides one day, you’ll have plenty of connections to make things happen. Good luck. And remember, your first year as an agent will likely be hard. But once that network expands, youll do great.