Advice for 18yr old beginner wholesaler?

Wholesaling
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Advice for 18yr old beginner wholesaler?

Nicardo Mundell
Member since 2019 · 1 post · 0 votes

Hey to everyone. I just created this account so my bad if I wrote this incorrectly.

I've always had some sort of aptitude to invest to get rich now, not later. investments like stocks aren't my thing because I don't want to buy a stock and have to wait 10+ years to potentially sell it. I don't want to have financial freedom when I'm old. I want it now so I can actually enjoy it moving forward. That's when I came across wholesaling. I did extensive research on it and it really intrigued me. The fact I can make a profit with barely any money got my attention. I know all the basics to it, but I feel like I'm missing tiny details. I don't plan on using this long term, but as a stepping stone into more real estate investments like buying and renting out a property, or a fix & flip. I currently reside in Richmond, VA. I don't know anything about the market & I'm kind of scared to actually Start finding sellers, because I feel like I'm going to mess up the Purchase and sales agreement contract and having to actually buy the property when I don't have the money, and I don't even know where to start to find cash buyers. Help

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Lydia R.
Investor · Austin TX · Member since 2016 · 1k+ posts · 2k+ votes
6y

@Nicardo Mundell Most people who learn about wholesaling and decide that they want to do it are basically looking for the same things: A get rich quick scheme that costs no money but allows you to make millions in a short period of time. I understand that you are 18 and you want everything right now. Wholesaling doesnt work that way. It requires more specialized knowledge and skills than other methods of real estate investing. It does require capital. It requires time. You have to make a substantial investment on your part, time and or money. You have to know what you are doing. You have to understand your market. You need to be able to run comps, accurately calculate rehab costs, understand the difference between fix and flip rehab costs and rental rehab costs. You need to be able to find these motivated sellers in the first place. You have to compete against the bigger players in your market and find sellers that want to sell at a discount. You obviously havent spent enough time on BP to know this yet but wholesalers get a bad rap. They get labeled as liars, predators, scammers, scumbags etc. and its because the majority of them are just looking for a get rich quick scheme. If such a thing existed everyone would do it. If you want to get into wholesaling then please take the time to educate yourself on the entirety of the process, not just the theoretical bags of cash that you think it will generate.

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  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    6y

    Signing contracts with no ability and intention to close is called FRAUD

    1Reply
  • Stephen Glover
    Property Manager · Richmond, VA · Member since 2018 · 204 posts · 297 votes
    6y

    @Nicardo Mundell you mentioned that you are missing the tiny details, but also mention you don’t know the market, which is a massive detail!

    I think you’re on the right track looking at it from an 18 yr olds perspective, but you don’t know what you don’t know. You know you want to invest in RE which is way ahead of where I was when I was 18.

    This isn't what you want to hear, but (in my opinion) the best route for you would be to continue learning and meeting local people. Get to meetups, REIA meetings, shake hands, grab coffee with investors, etc. Do what you can to offer value, and get valuable knowledge in return. This will guide you naturally to your first deal, whatever it ends up being.

    One thing you’ll learn is that cash buyers are everywhere in Richmond, Va. They buy from people who have good deals. People who have good deals are generally connected, experienced, have invested heavily in leads, and have paid their dues over the course of a few years. Long term success does not happen overnight.

    1Reply
  • Trey Kern
    Lender · Richmond, VA · Member since 2019 · 11 posts · 11 votes
    6y

    Yes, best to continue learning. In addition to what Steven Glover said, read up on all of the real estate books you can find. The books written and published by the Bigger Pockets founders and associates are actually some of the more comprehensive real estate investing books I have come across. Read them cover to cover multiple times. There may even be one on wholesaling.

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  • Lydia R.
    Investor · Austin TX · Member since 2016 · 1k+ posts · 2k+ votes
    6y

    @Nicardo Mundell Most people who learn about wholesaling and decide that they want to do it are basically looking for the same things: A get rich quick scheme that costs no money but allows you to make millions in a short period of time. I understand that you are 18 and you want everything right now. Wholesaling doesnt work that way. It requires more specialized knowledge and skills than other methods of real estate investing. It does require capital. It requires time. You have to make a substantial investment on your part, time and or money. You have to know what you are doing. You have to understand your market. You need to be able to run comps, accurately calculate rehab costs, understand the difference between fix and flip rehab costs and rental rehab costs. You need to be able to find these motivated sellers in the first place. You have to compete against the bigger players in your market and find sellers that want to sell at a discount. You obviously havent spent enough time on BP to know this yet but wholesalers get a bad rap. They get labeled as liars, predators, scammers, scumbags etc. and its because the majority of them are just looking for a get rich quick scheme. If such a thing existed everyone would do it. If you want to get into wholesaling then please take the time to educate yourself on the entirety of the process, not just the theoretical bags of cash that you think it will generate.

    2Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    6y
    Originally posted by @Lydia R.:

    @Nicardo Mundell Most people who learn about wholesaling and decide that they want to do it are basically looking for the same things: A get rich quick scheme that costs no money but allows you to make millions in a short period of time. I understand that you are 18 and you want everything right now. Wholesaling doesnt work that way. It requires more specialized knowledge and skills than other methods of real estate investing. It does require capital. It requires time. You have to make a substantial investment on your part, time and or money. You have to know what you are doing. You have to understand your market. You need to be able to run comps, accurately calculate rehab costs, understand the difference between fix and flip rehab costs and rental rehab costs. You need to be able to find these motivated sellers in the first place. You have to compete against the bigger players in your market and find sellers that want to sell at a discount. You obviously havent spent enough time on BP to know this yet but wholesalers get a bad rap. They get labeled as liars, predators, scammers, scumbags etc. and its because the majority of them are just looking for a get rich quick scheme. If such a thing existed everyone would do it. If you want to get into wholesaling then please take the time to educate yourself on the entirety of the process, not just the theoretical bags of cash that you think it will generate.

    Indeed they are! Skirting laws to broker without a license certainly earns the titles FRAUDS and SCAMMERS. State of FL investigators call them predators and the uninformed that deal with them are victims.

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