How should I start/approach becoming a wholeseller no license?

13 Replies

I'm 19 starting off by saying my main goal is to be financially free so I can live a good life. Moved from Wisconsin to Raleigh NC need help finding mentor or a person that would help guide me through deals and become wise of real estate strategies.

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 free methods are driving for dollars, door knocking, wholesalers, craigslist, Realtors, FSBO sites, expired listings, foreclosure sites, put out bandit signs,

If you have the funds you can use billboards, newspaper ads, other offline publications., TV commercials, radio ads, do pay per click/adwords, facebook, Linkedin, Youtube, and other forms of online advertising and boosted/promoted 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.

Why not get your real estate license, and sell houses, focus on investor buyers, and learn what to do and what not to do while watching others that are out there making it happen? 

@Greg Dickerson This is some great advice @Phillip Hooks-Wright . My question is if you wanna sell houses why not just get your license? If you are dedicated to it you can be licensed in about a month and working your butt off as an agent can get you the money you need to run wholesale marketing campaigns with the commission you make. You can also wholesale as an agent, you just need to make sure you do it correctly and make sure everyone involved understands you are not and will not enter into an agency relationship with them and that you have an interest as an investor and you are not representing them. It’s also a lot cheaper than people think to get a real estate license. The course can be taken online for about $200 and then here in Virginia the state test costs $60 to take.

(Let me make it clear I am in Virginia so local laws may vary so be sure to check your state and local laws do not take this as concrete advice. Just think of it as something else to consider)

@Phillip Hooks-Wright I would attend the local triangle dealmakers session. Learn and network. At the end of the day you’ll need some sort of income as wholesaling requires money to be spent

Originally posted by @Phillip Hooks-Wright :

I'm 19 starting off by saying my main goal is to be financially free so I can live a good life. Moved from Wisconsin to Raleigh NC need help finding mentor or a person that would help guide me through deals and become wise of real estate strategies.

Wholesaling as it's taught is a myth. You need a license to Broker real estate. That's all wholesaling is as it's typically taught. It's simply brokering real estate except instead of being up front & telling the distressed seller that you'll sell their property for X amount & take X amount as your commission / fee you are taught to lie to the seller & pretend you are going to buy the property while you secretly attempt to "assign" your contract.

It doesn't work. Nobody has any respect for wholesalers. Whenever a wholesaler contact me I simply get the information about the property & reach out to the owner myself cutting the wholesaler out of the deal entirely. If you do business above board as a licensed agent that won't happen to you. The only people making money wholesaling are the guys selling the education.

@Phillip Hooks-Wright you would say you are a wholesaler. At that meetup I mentioned you say if you have the property you are pitching under contract and are assigning that contract or if you own it and you’re selling it.

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