I’m currently new to Real Estate and I want to get into wholesaling. Working a 9 to 5 doesn’t do it for me anymore and I want to change career paths and be financial free. I’ve attended a few seminars and webinars and also been reading a lot. I haven’t made any deals yet because I’m still in the learning stage. Any tips or advise for a newbie like me?
Thank you all it’s much appreciated!
First step is to make sure you understand the laws in your area regarding wholesaling which is the assignment of a contract and double closes. Several states have passed laws calling wholesaling brokering and are requiring a real estate license to wholesale.
You should talk to a real estate attorney or title company that works with investors in your area to ensure you are in compliance with any laws. They will also have the proper contracts as well.
Next you need to educate yourself on the business and your market. You really need to immerse yourself and learn all you can. Attend REI groups and meetups and network with other experienced investors.
Start with finding cash buyers. You want professional legitimate cash buyers so you know you can close on the deal and do what you tell the seller you will do. I can’t emphasize this point enough. You do not want to contract a property unless you know you can close it or take it down yourself.
Different types of cash buyers are flippers, buy and hold, subject to and lease option. You need to find several of each of these types of buyers and learn what they are looking for.
Best way to find cash buyers is networking at local REI meetups, masterminds, Facebook groups, Realtors, title companies, closing attorneys, property management companies, auctions, Craigslist, and bandit signs.
You can search real estate transactions in your tax database. Look for entities and individuals that have bought multiple properties. You may need to search by the address of the buyer as they may change their name or the name of the entity on each purchase. You can also buy lists from companies like list source and there are some REI software companies that have a cash buyer search feature.
Best way to find motivated sellers is to purchase lists and compile lists from city and county for 60-90-120 days late on mortgage, pre-foreclosure, delinquent taxes, water cutoff, code violation, probate, divorce, high equity, etc. and mail or cold call.
Other methods are driving for dollars, door knocking, wholesalers, craigslist, Realtors, FSBO sites, expired listings, foreclosure sites, put out bandit signs, billboards, newspapers, other offline publications.
If you have the funds you can run TV commercials, do pay per click/adwords, facebook, Linkedin, Youtube, and other forms of online advertising and social media postings.
Bottom line is consistency. You need to take consistent focused action every day, answer the phone when it rings and follow up and follow through.
@Morgan Brown Mailing is probably the best way to find your own off-market deals. These are people who share motivational characteristics of people ready to sell, but haven't yet done all the work they think they need to list property. The best way to find them is to send out mailers.
Some good lists to target are Absentee Owners with Equity, Seniors with Long-time Ownership and Homeowners with Low Financial Stability Scores.
You can work with a list broker to optimize your list for your area. From there, there are a lot of companies that can help with the printing and mailing. Be sure that you highlight that "selling your house can be easier than you think" with the advantages of working directly with you instead of the more traditional route.
@Greg Dickerson Thank you sooo much for all your advice! I definitely will follow it.
@May Emery Thank you sooo much for the advice!
Hi @Morgan Brown - I started my real estate career wholesaling. I know there are others that disagree (wholesaling gets a bad rap) but I think it's a good way to get your foot in the door. You'll learn a lot. One thing to keep in mind is it's not as easy as the gurus/books make it seem. The capital needed to get your wholesale career off the ground comes in the form of TIME or MONEY (or combination of both). If you don't have money to spend on marketing for leads then you better be willing to "spend" your time. The less money you spend the more time you have to spend (networking, driving for dollars, knocking on doors, Craigslist, researching tax records etc). I think it's helpful to know ahead of time it's not easy. Because if you think it is going to be and after a few months you don't have any leads you're likely to give up. Don't. If you are motivated you 100% can make it happen. You CAN make money wholesaling and you CAN use those dollars to start moving up the food chain in real estate. Persistence and patience. It pays off. I went from wholesaling, to flipping, to holding SFR, holding MF, holding commercial, holding office, to townhouse subdivisions... and I am not some genius. Not even close. Just a properly motivated, persistent and patient person.
@Salvatore Lentini thank you so much for your honesty. Yes the books does make it seem like it’s the easiest thing to do. I really appreciate your advice!
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