Is knowing market & competition level important b4 wholesaling?

Question

From what I understand, you can wholesale in any market. Is there a way to gauge the competition level in a particular market? And what are the key factors that determine the level of ease/difficulty of wholesaling in that market?

Basit Siddiqi · Answer

@Terry ThomasSetting up multiple LLC's, Holding companies, land trusts is OVERKILL.The only person making money off that is the attorney who is setting that up.If you are wholesaling, you want your protection in the wholesale contracts.They will be a better line of defense instead of the entities.

Jerryll Noorden · Answer

This is the wrong attitude to have my friend.

Do you think I guage my competition? No. I have no competition, my competition don't even gauge me. It is like pepsi and coke. No one tried to kick coke off the first place. I hate coke. it is bitter and too much gas. Pepsi is sweet, like me!

Yet no one touches coke, it is a lost battle. They are not going anywhere so they all fight for the 2nd spot.

Why do you need to gauge the competition? If they are strong will you not fight? You will fight anyways right? If they can be beat THEN you will fight right?

I don't CARE what my "competition" does. I am bigger, better, stronger, smarter, sexier and that's all. True or not is irrelevant. I believe it and that gives me my superpower of confidence... and once you are confident... you my friend are a power to be reckoned with.

So, frog them. Frog them all up the frogbutt and take control.

Now believing you are the poop is not enough. Now you need to act like you are the poop and go take over!

Will Barnard · Answer

Your competition and knowing them is so less important than knowing the market. If you know your target market inside and out and know the numbers, you can be successful. For wholesaling, you need to be good at marketing (regardless which road you take) know your numbers (rehab costs and exit values), know your buyer's criteria, and know the laws as most do wholesaling illegally. Do that and you WILL be successful.

Jerryll Noorden · Answer

You make a very important point here. And I do have to be careful what I say not guiding people making the wrong decisions. Now consider the following:

If you knew you could take on Gods and Dragons, would you try taking on bears first?

You are not wrong. Small steps first. There is nothing wrong with that.

It is all about leveraging "knowing your abilities" and "keeping realism in check".

I have been giving advice based on knowing "my" limitations, drive, obsessive drive to succeed, and my abnormal amount of self-confidence.

Some people are B students no matter where they are placed (these people are a power to be reckoned with). They are placed in a low ranking school, and they get B's. Then they get placed in MIT, and they get B's. They perform based on the level of stress put on them.

If their stress and difficulty level is low, they put little into it. They are subjected to a higher demand and they will perform harder always still giving their 80% of results worth.

Anyone can only give you advice based on their POV.

I know I can do anything and everything. Know this, it is important you don't just say this and hope it is true, because it doesn't become true simply because that is what you want. It will bite you in the butt FAST! You need proof. Not for anyone else but you. Once you see you can do anything, your mind believes it. And when that happens... you are powerful! I believe I can do anything I put my mind to. I know what I have accomplished in my life and proof is there (as in, I see the proof myself...this is about me, not for others to stroke my ego).

Now, let me tell you about my FIRST ever REI meeting. At one point we all stood in a circle and you introduce yourself and state your goals. I was a NOBODY in the REI (not that I am a someone now..). I said I will dominate the CT market, and take on the entire CT. EVERYONE giggled. Can you blame them? This half ape looking dude barely even knows what ARV stands for talks about how he will kick everyone's ass in that room in their own markets. They told me, "Dude, start with your city first, CT is too big, you will drown before you get anywhere". Were they wrong? Nope, that is absolutely sound advice, because the average person would drown.

But I am not your average punk! If I tell you I will make something happen. It WILL happen!

So, what kind of person are you? If you need to take care of the bears first, you take down those bears. Nothing wrong with that!

Be careful that when you go to war with the bears you don't engage in an eternal war with the bears. Destroy and aim the cross hairs higher and higher.

BTW, competition doesn't matter. Irrelevant where they are and what they do. You know why? Because you are smarter, better, want it more and nothing will stop you!

Jerryll Noorden · Answer

Exactly. It doesn't!! That is the point I was trying to make.

You take first what ever market you want. It shouldn't be based on "Gauging your competition", which is what you were saying, and I quote:

"But if I can gauge the competition in particular markets, why compete against the Michael Jordans when there’s 3 Dan Majerles waitin’ to get dunked on?"

I am telling you, no need to be afraid of the "Michael Jordans" when you are a God! My point is, and you obviously do what you want.. but as for ME... I am not going to pick my markets based on the fact that someone else that is "strong" is already in that market. I do not "compete" with anyone. I take over!

Again, that is me. I am really good at what I do, and not many people can stand against me when it comes to marketing. I know my worth. As long as you know yours, you decide on THAT, not the competition.

Good luck!

Jerryll Noorden · Answer

No idea if it is correct either. All I can say is that is how things work for me. Everyone is different.

And thank you!

Don Konipol · Answer

@Jerryll Noorden

I don’t know if everything you say is correct, but I LOVE your confidence!

Basit Siddiqi · Answer

@Terry ThomasYou heard incorrect regarding the tax implications of sole proprietorship vs LLC.

Terry Thomas · Answer

@Basit Siddiqi

Thank you for the response!

I’ve heard that if I’m sued the plaintiff can potentially have access to funds and other assets acquired as a sole proprietor, and in some cases, even if my REI assets are held in a single LLC.

I’m thinking long term and would like to also flip, buy and hold, the brrrr method etc. eventually.

That said I would like to remain anonymous as a landlord, and a sole proprietorship won’t cut it. Nor does it have many tax advantages, I’ve heard.

The best tax advantages, anonymity, and asset protection from lawsuits. Is there such a combo or am I thinking too much into it?

Terry Thomas · Answer

@Jerryll Noorden

How you doin’ my dude? Hope all is amazing. Quick question: How is your business structured?

I’d like to know what’s the best way to structure my real estate business for anonymity, asset protection, and the best tax advantages?

I’ve heard of several setups: LLC’s within a Wyoming-based holding LLC, LLC in a land trust, etc. Do you have a similar setup or are you familiar with such?

Is knowing market & competition level important b4 wholesaling?

Is knowing market & competition level important b4 wholesaling?

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