New to Starting Wholesaling

19 Replies

Hi, my name is Ashley and I am 25 years old. I’m very eager to start wholesaling in real estate. I’ve searched the web and intended to everyone’s success stories and even invested money into trying to understand the wholesaling process. Every less has left me stomped. My biggest concern would be closing the deal, I have all of my resources to find properties and contact the property owners but I become lost at the closing deal.

I drive for dollars as well as utilize dealmachine.com and other websites and tools that have been said to be useful for beginning and starting wholesaling.

Any information would be greatly appreciated.

@Ashley Berry ,

Oh, how I wish I started at 25!  Reverse that number, and I hadn't even started by then.  :(

There are really three phases to this business, and each phase itself can even be broken down further. 

Phase one is marketing, and it sounds like you have that well in hand.  I suggest you make sure you do not let up on the gas pedal while you're running your business.  This part of the business has to be continuous.

Phase two is negotiation.  As a wholesaler, you have to build rapport (as with any business, really) and get to the heart of what they want.  This is a people skill.  Are they looking to sell for the highest possible price and they're in no rush?  If so, this isn't a wholesale deal.  This is a retail deal.  You can always establish a relationship with a local Realtor and pass those leads off to them.  Don't expect to get paid for that, expect to build a close relationship.  If they're more flexible, find out what their priorities are.  They might need to move yesterday.  They might be facing foreclosure.  They may have gone through a divorce and they need to get rid of this right away.  There might be a ton of repairs that they just can't deal with.  Once you know what they really need, create a solution (or solutions) that help them meet their needs.  At this point, they might need persuasion as well.  Not to get them to do something they don't want to do, but possibly to get them to realize that this really is good for them.  For example, my wife persuaded me to get my annual physical.

Finally, once you make the offer and it's accepted, you need to be able to execute the deal.  You should already have a title attorney (or whatever it's called in CA) on your team.  These are the people who will do the title search, provide title insurance, and effectively complete the deal and distribute the funds.

While I don't think this book is perfect, I do recommend, "If you can't wholesale after this... I've got nothing for you."  It takes you through the process pretty well.

Of course, none of this mentioned finding a buyer. You should always be building your cash buyers list. If you aren't already, attend as many local REI meetings as you can. Go religiously. You will meet local investors active in the community, build your buyers list, and get some great education along the way.

Good luck!

Originally posted by @Ashley Berry :

Hi, my name is Ashley and I am 25 years old. I’m very eager to start wholesaling in real estate. I’ve searched the web and intended to everyone’s success stories and even invested money into trying to understand the wholesaling process. Every less has left me stomped. My biggest concern would be closing the deal, I have all of my resources to find properties and contact the property owners but I become lost at the closing deal.

I drive for dollars as well as utilize dealmachine.com and other websites and tools that have been said to be useful for beginning and starting wholesaling.

Any information would be greatly appreciated.

 Dudette.. NEVER do this:

"that have been said to be useful"

Look. Everyone does DMM... its crap

Every beginner investor does, D4D, Door knocking, Bandit signs.  CRAP.

Think about it. How many investors fail? Most. How many investors do DMM, D4D, Bandit signs, cold calling.. MOST.

These strategies simply suck! Why do you want to base your success on methods where the odds are severely against you? Seriously don't even do it.

Keep this in mind.

Nike. They have money right? They can do what ever they want when it comes to marketing.

Do a search for Nike online.

They do PPC. They do Facebook ads.

If D4D was better, Nike would be all over it. They could pay 3000 people to start coldcalling or D4D.

Companies like Nike, spend millions of dollars on marketing research. They know what they are doing and if they don't use methods like D4D and the like, well it is a good indication those methods do not work (well).

I get what you are thinking. Well I don't have money to do PPC. Well I rather save up the money and do a solid campaign and get a deal GUARANTEED, than spending 500 a month for 5 months without getting anywhere.

Remember every month you do not make a deal, you lost money, rent, gas, mortgage, food, insurance, crab legs... 

I have been here long enough to see EVERYONE making the SAME mistake. And the weirdest thing of all... PEOPLE DO NOT LEARN.

For some reason they think they are the exception. For some reason they think they are special and for them it WILL work.

Answer this question for yourself.

How Do You Expect To Become A Successful Real Estate Investor When You Are Doing The Exact Same Thing That 97% Of Investors That Fail Are Doing?

Listen do a google search for "Forced Traffic & Conversion". And check out that plan. People have purchased a house to start to flip it in about 60 days from starting as a newbie following that system.

Look I know you think I am just some dude talking a good talk and I know everyone claims they know better, that their system works better.

Well.. let anyone that tells you their system works best  match these results:

All these leads are organic leads, and thus are high equity highly motivated free seller leads.

It is up to you, but this coming from someone that started without money, and developed my own system, through logic experiment, testing and tweaking, we really DID crack the lead generation code. Our results are second to NONE!

And it is free. You can do this yourself, No need to pay anyone.It will take a significant effort, drive and patience to set it all up, but do you honestly think I regret doing it?

Hell I can have crablegs for breakfast now!

Be smart. Do NOT follow the masses. NEVER EVER decide on doing something because:

"that have been said to be useful"

People get friggin 3 leads a month and they think those are amazing results. Yeah OK.


Get a website, set it up, work on credibility, work on SEO, and keep at it. Success is up for grabs. You know why?

Because just like you are probably thinking "OMG  monkey boy I am NOT going to dabble in SEO are you insane?". Well so is EVERYONE ELSE! That was my MAIN reason that made me do it. No one does it no one wants to do it. And now I dominate my market! 

Here read this:

https://www.biggerpockets.com/forums/12/topics/771584-rei-success-recipe-do-not-follow-the-masses



Well.. hope you make the right decision. Good luck!

BTW, closing the deal is easy. Really easy. After the contracts are signed, submit it all to your lawyer and they will do the rest.

Originally posted by @Barry Pekin :

@Ashley Berry ,

Oh, how I wish I started at 25!  Reverse that number, and I hadn't even started by then.  :(

There are really three phases to this business, and each phase itself can even be broken down further. 

Phase one is marketing, and it sounds like you have that well in hand.  I suggest you make sure you do not let up on the gas pedal while you're running your business.  This part of the business has to be continuous.

Phase two is negotiation.  As a wholesaler, you have to build rapport (as with any business, really) and get to the heart of what they want.  This is a people skill.  Are they looking to sell for the highest possible price and they're in no rush?  If so, this isn't a wholesale deal.  This is a retail deal.  You can always establish a relationship with a local Realtor and pass those leads off to them.  Don't expect to get paid for that, expect to build a close relationship.  If they're more flexible, find out what their priorities are.  They might need to move yesterday.  They might be facing foreclosure.  They may have gone through a divorce and they need to get rid of this right away.  There might be a ton of repairs that they just can't deal with.  Once you know what they really need, create a solution (or solutions) that help them meet their needs.  At this point, they might need persuasion as well.  Not to get them to do something they don't want to do, but possibly to get them to realize that this really is good for them.  For example, my wife persuaded me to get my annual physical.

Finally, once you make the offer and it's accepted, you need to be able to execute the deal.  You should already have a title attorney (or whatever it's called in CA) on your team.  These are the people who will do the title search, provide title insurance, and effectively complete the deal and distribute the funds.

While I don't think this book is perfect, I do recommend, "If you can't wholesale after this... I've got nothing for you."  It takes you through the process pretty well.

Of course, none of this mentioned finding a buyer. You should always be building your cash buyers list. If you aren't already, attend as many local REI meetings as you can. Go religiously. You will meet local investors active in the community, build your buyers list, and get some great education along the way.

Good luck!

 Dude, You are old!!

I can build you an exoskeleton if you need help walking the houses you make offers on!

WAIT A SECOND.

How many deals would I close If I went like this:

DUDE...

DUUUUUDE!!!!!

Imatryit

If you need a buyer I would either (long route) go to your local county records office and pull every property in the county and filter it for duplicates and call or send mail this will get you your buyers and sellers honestly or (short route) go to a couple title companies and asked for a list of properties that had all cash purchases this will give you some local buyers. I've never done the later. I'm a techie so I do the long route but the easier option is the short route from what I hear. 

If you are having a hard time finishing the entire process. Bring deals or valuable information to local real estate investors in the area and if they are cool enough they will walk you through the process. If you don't want to do that then take risk you will always fall forward. Keep building your confidence and you will make it happen. 

@Ashley Berry it all begins with cash buyers. You need a solid list of serious cash buyers first before you go any further.

Some of the best ways to find cash buyers is networking at local REI meetups, masterminds, Facebook groups,

Realtors, title companies, closing attorneys, property management companies, auctions, Craigslist, bandit signs, google search etc.

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 subscribe to software that will show you who the cash buyers are. You can skip trace addresses with a service like datazap and calm them up.


Originally posted by @Jerryll Noorden :
Originally posted by @Barry Pekin:

@Ashley Berry ,

Oh, how I wish I started at 25!  Reverse that number, and I hadn't even started by then.  :(

There are really three phases to this business, and each phase itself can even be broken down further. 

Phase one is marketing, and it sounds like you have that well in hand.  I suggest you make sure you do not let up on the gas pedal while you're running your business.  This part of the business has to be continuous.

Phase two is negotiation.  As a wholesaler, you have to build rapport (as with any business, really) and get to the heart of what they want.  This is a people skill.  Are they looking to sell for the highest possible price and they're in no rush?  If so, this isn't a wholesale deal.  This is a retail deal.  You can always establish a relationship with a local Realtor and pass those leads off to them.  Don't expect to get paid for that, expect to build a close relationship.  If they're more flexible, find out what their priorities are.  They might need to move yesterday.  They might be facing foreclosure.  They may have gone through a divorce and they need to get rid of this right away.  There might be a ton of repairs that they just can't deal with.  Once you know what they really need, create a solution (or solutions) that help them meet their needs.  At this point, they might need persuasion as well.  Not to get them to do something they don't want to do, but possibly to get them to realize that this really is good for them.  For example, my wife persuaded me to get my annual physical.

Finally, once you make the offer and it's accepted, you need to be able to execute the deal.  You should already have a title attorney (or whatever it's called in CA) on your team.  These are the people who will do the title search, provide title insurance, and effectively complete the deal and distribute the funds.

While I don't think this book is perfect, I do recommend, "If you can't wholesale after this... I've got nothing for you."  It takes you through the process pretty well.

Of course, none of this mentioned finding a buyer. You should always be building your cash buyers list. If you aren't already, attend as many local REI meetings as you can. Go religiously. You will meet local investors active in the community, build your buyers list, and get some great education along the way.

Good luck!

 Dude, You are old!!

I can build you an exoskeleton if you need help walking the houses you make offers on!

WAIT A SECOND.

How many deals would I close If I went like this:

DUDE...

DUUUUUDE!!!!!

Imatryit

I don't know if I'm going to cry because of your mean words, or go out and get me one of those!

You kids and your fancy gadgets!  Back in my day, um... uh... what was I saying?

Originally posted by @Barry Pekin :
Originally posted by @Jerryll Noorden:
Originally posted by @Barry Pekin:

@Ashley Berry ,

Oh, how I wish I started at 25!  Reverse that number, and I hadn't even started by then.  :(

There are really three phases to this business, and each phase itself can even be broken down further. 

Phase one is marketing, and it sounds like you have that well in hand.  I suggest you make sure you do not let up on the gas pedal while you're running your business.  This part of the business has to be continuous.

Phase two is negotiation.  As a wholesaler, you have to build rapport (as with any business, really) and get to the heart of what they want.  This is a people skill.  Are they looking to sell for the highest possible price and they're in no rush?  If so, this isn't a wholesale deal.  This is a retail deal.  You can always establish a relationship with a local Realtor and pass those leads off to them.  Don't expect to get paid for that, expect to build a close relationship.  If they're more flexible, find out what their priorities are.  They might need to move yesterday.  They might be facing foreclosure.  They may have gone through a divorce and they need to get rid of this right away.  There might be a ton of repairs that they just can't deal with.  Once you know what they really need, create a solution (or solutions) that help them meet their needs.  At this point, they might need persuasion as well.  Not to get them to do something they don't want to do, but possibly to get them to realize that this really is good for them.  For example, my wife persuaded me to get my annual physical.

Finally, once you make the offer and it's accepted, you need to be able to execute the deal.  You should already have a title attorney (or whatever it's called in CA) on your team.  These are the people who will do the title search, provide title insurance, and effectively complete the deal and distribute the funds.

While I don't think this book is perfect, I do recommend, "If you can't wholesale after this... I've got nothing for you."  It takes you through the process pretty well.

Of course, none of this mentioned finding a buyer. You should always be building your cash buyers list. If you aren't already, attend as many local REI meetings as you can. Go religiously. You will meet local investors active in the community, build your buyers list, and get some great education along the way.

Good luck!

 Dude, You are old!!

I can build you an exoskeleton if you need help walking the houses you make offers on!

WAIT A SECOND.

How many deals would I close If I went like this:

DUDE...

DUUUUUDE!!!!!

Imatryit

I don't know if I'm going to cry because of your mean words, or go out and get me one of those!

You kids and your fancy gadgets!  Back in my day, um... uh... what was I saying?

 You know I am only mean to you because I love you!

Originally posted by @Jerryll Noorden :
Originally posted by @Barry Pekin:
Originally posted by @Jerryll Noorden:
Originally posted by @Barry Pekin:

@Ashley Berry ,

Oh, how I wish I started at 25!  Reverse that number, and I hadn't even started by then.  :(

There are really three phases to this business, and each phase itself can even be broken down further. 

Phase one is marketing, and it sounds like you have that well in hand.  I suggest you make sure you do not let up on the gas pedal while you're running your business.  This part of the business has to be continuous.

Phase two is negotiation.  As a wholesaler, you have to build rapport (as with any business, really) and get to the heart of what they want.  This is a people skill.  Are they looking to sell for the highest possible price and they're in no rush?  If so, this isn't a wholesale deal.  This is a retail deal.  You can always establish a relationship with a local Realtor and pass those leads off to them.  Don't expect to get paid for that, expect to build a close relationship.  If they're more flexible, find out what their priorities are.  They might need to move yesterday.  They might be facing foreclosure.  They may have gone through a divorce and they need to get rid of this right away.  There might be a ton of repairs that they just can't deal with.  Once you know what they really need, create a solution (or solutions) that help them meet their needs.  At this point, they might need persuasion as well.  Not to get them to do something they don't want to do, but possibly to get them to realize that this really is good for them.  For example, my wife persuaded me to get my annual physical.

Finally, once you make the offer and it's accepted, you need to be able to execute the deal.  You should already have a title attorney (or whatever it's called in CA) on your team.  These are the people who will do the title search, provide title insurance, and effectively complete the deal and distribute the funds.

While I don't think this book is perfect, I do recommend, "If you can't wholesale after this... I've got nothing for you."  It takes you through the process pretty well.

Of course, none of this mentioned finding a buyer. You should always be building your cash buyers list. If you aren't already, attend as many local REI meetings as you can. Go religiously. You will meet local investors active in the community, build your buyers list, and get some great education along the way.

Good luck!

 Dude, You are old!!

I can build you an exoskeleton if you need help walking the houses you make offers on!

WAIT A SECOND.

How many deals would I close If I went like this:

DUDE...

DUUUUUDE!!!!!

Imatryit

I don't know if I'm going to cry because of your mean words, or go out and get me one of those!

You kids and your fancy gadgets!  Back in my day, um... uh... what was I saying?

 You know I am only mean to you because I love you!

 I know!  <3

Everyone is a wholesaler! What does that mean. Do you intend to be the middleman on a deal, bring buyers and sellers together, and make the split. That is BROKERING. That is brokering in MANY states. Also many states prohibit marketing properties you do not own unless you are licensed. Many unlicensed brokers operate illegally and do exactly that. If you are not licensed how can you successfully and legally wholesale? Get on title. Buy the property (or part ownership) and then market market market. That is legal. Using false escape clauses is a disservice to sellers. Many people see no problem with that but WOULD have a problem if it was pulled on them. Signing contacts representing that you are buying the property with no intention of and having no means to do so is called FRAUD IN THE UNDUCEMENT. That is a legal term. Look it up. 25 is a great age to get started. I bought my first one slightly before that. Do the right thing for the sake of the industry. MANY people are victimized by unlicensed brokers. They have a very bad reputation with me and many others. Good luck youngster.

@John Thedford just when I was about to say where’s John...Always a pleasure.

@Ashley Berry welcome to the community, you'll get good advice and some bad advice here and what may work for some may not work for others, but take everything you receive in BP as a stepping stone to dig in a do research. My drive towards education was going to one of those REI "Get Rich Quick" free seminars, I took a lot of notes but realized it was all ambiguous just to update you to learn more. I took my notes and did a deep dive on my own and found Bigger Pockets and continue to learn. Like I said everything you read here take what you can but always see how it can be applied in your market, run if by players in the REI meetups and see what's working in your area, you may even bring up a solution or strategy that haven't thought of and will give you a bit of credibility and value with in the group.

Originally posted by @Ray A Delfi :

@John Thedford just when I was about to say where’s John...Always a pleasure.

@Ashley Berry welcome to the community, you'll get good advice and some bad advice here and what may work for some may not work for others, but take everything you receive in BP as a stepping stone to dig in a do research. My drive towards education was going to one of those REI "Get Rich Quick" free seminars, I took a lot of notes but realized it was all ambiguous just to update you to learn more. I took my notes and did a deep dive on my own and found Bigger Pockets and continue to learn. Like I said everything you read here take what you can but always see how it can be applied in your market, run if by players in the REI meetups and see what's working in your area, you may even bring up a solution or strategy that haven't thought of and will give you a bit of credibility and value with in the group.

 Thanks! I will put you down on my ESP list (emotional support posters):)

Hi @Ashley Berry . Congrats on getting started!

We wholesale and invest in a few different states (Florida, Alabama, Michigan, and Ohio).  The same holds true for every market we go to as we continue expanding.... Investors love connecting with credible deal providers, if you take the time to source great deals. At the risk of oversimplifying the process... if you acquire quality deals, the investors will come.  This is especially true if you live in a place with an active investor community.  

If you have the ability to source quality investment deals then you are way ahead of the curve, and can be of tremendous value to investors, other wholesalers, and end buyers. Having the ability to properly analyze, source and negotiate investment deals is a very valuable skill set and probably the hardest part of the wholesaling process. I just wanted to emphasize this point, because you should be proud if you have this ability already and you should feel confident if you acquire a good deal can sell.

Our acquisition team is constantly in various stages of negotiation with 100's of sellers every month. Depending on the type of lead it can sometimes take filtering through, analyzing and negotiating 100+ leads to provide 3 to 5 quality deals to our investor network. Analyzing and sourcing deals are the most intensive parts of the process and where you really earn your money.

There are some great insights provided by others in the post about how to find buyers. When you meet those buyers, letting them know that you have a property to sell that is worth 50-80% of its after repair value is an easy convo to have.

Here is what I would do:

  1. Step 1. Do research on the tax records, ask other wholesalers, and members of REI groups and bigger pockets to gain insight. Find out what investors are buying in your area, and their desired returns, before actually acquiring anything. It's the equivalent of doing market research before starting a business. Example: Lets say investors seem to be buying homes for $500k in the neighborhood you are targeting and flip them for $750k. Then you can feel confident that if you acquire a home in that neighborhood for $450k, it will sell quickly.
  2. Step 2. Make a list of cash buyers that have purchased from the tax records, plus wholesalers that have a reputation for selling a lot of properties in your area and start compiling their contact info.
  3. Step 3. Get to work, acquiring a quality property.
  4. Step 4. When you are finalizing your negotiations with a seller, put a little teaser out to that list compiled in step 2. "Hi _____ I noticed you recently purchased and flipped/wholesaled a property in the ____ neighborhood. I have a similar deal that I may have coming up that is at a similar price point. Would you have an interest in picking up another?"
  5. Step 5. Acquire the property with the seller, and sell to any interested parties from step 4.

Hope this helps! DM if you want help with any parts of the process. We actively partner, JV, and mentor wholesalers throughout the country.


Thank You to everyone who took the time out to respond to my post and comment with very very useful information! I really appreciate all of the advice as well as learning about everyone's experiences and success!

As mentioned before I am new to this but I will definitely utilize all the information that I was given from all of you. I will definitely post more and be more involved as there is lots of learning and new skills to adapt to along the way! 

I can not wait to share my success and hopefully give advice to someone as well :)

Originally posted by @Marlon Jackson :

Try myreipro.com Ashley 

Thank You Marlon! I visited the website and it looks like a website that I can definitely get help and lots of information from. Thank you again! I really appreciate it:)

 

@Ashley Berry

Hi Ashley ! Wholesaling is not illegal in CA as long as your not doing more than 8 a year, if it was "illegal" title company's wouldn't even allow this to be possible (:

I wish you the best of luck on your journey ! If you ever need help finding an end buyer send me a message! we can JV I will help you close

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