Flipper/Rehabber · Tampa, FL · Member since 2008 · 403 posts · 109 votes
I'm interested in hearing what new wholesalers, or those that are thinking about entering this business, are most concerned with, or struggle with the most. Some suggestions below...
1. marketing - finding motivated sellers
2. marketing - finding buyers
3. acquiring and using the correct contracts
4. pulling comps and determining value
5. determining repairs
6. motivation
7. inspiration
9. lack of confidence
10. negotiating
11. evaluating a deal
12. working with title companies/closing attorneys
13. creating relationships with other investors and realtors
14. finding a mentor
15. fear
16. other (please explain)
I'm trying to get a feel for what's on your mind these days. Specifically, what is holding you back, or what is keeping you from putting action behind information you've acquired.
Investor · North Richland Hills, TX · Member since 2011 · 789 posts · 403 votes
13y
Although I don't wholesale, I think this is a very very important post, regardless of what your area is.
Starting off, (keep in mind, I just do lease options) I think my biggest struggles were:
having the drive to "stick to it" despite not knowing what the hell I was doing.
Being able to keep forging ahead even though sellers would ask me questions that I didn't have the answers to.
Realizing that I had to "keep tweaking" until I figured out how to make the pieces fit for me.
Not having fear of knowing all the answers to all the questions...(fake it till you make it!)
I think this is a great post, as I think the hardest part is getting traction. It's so easy to give up, or think, "well, I tried that, but it didn't' work" and move on to selling vitamins via a MLM.
No matter the business, you have to have a certain fire in the belly that keeps you going.
Investor · Tampa, FL · Member since 2012 · 14 posts · 0 votes
13y
I would say lucky number 13 on your list...creating relationships with other investors and realtors has been a challenge. But also, the fear of not knowing what I don't know always creeps into my mind (that statement made sense before I typed it and read it aloud).
Flipper/Rehabber · Tampa, FL · Member since 2008 · 403 posts · 109 votes
13y
Anthony Woodland
You can't just do ARV x .65 and get your offer. It needs to be ARV x .65 - repairs - closing costs - holding costs - your fee = offer. And, to find out if they are motivated, just ask them one simple question:
"Why do you need to sell your house?"
Their response will tell you their motivation. If they are truly motivated (or better yet, in distress), their reply will begin with, "Well, I need to sell because..." If they aren't, their reply will be something like, "Well, I don't really need to sell. I am just looking to..." Or, "I want to..."
For the latter, refer them to a realtor. No need to waste your time on unmotivated sellers.
In addition, you need to know the seller's price expectation. So, make sure you ask them. In this case, the seller wants $50k. And, from crunching numbers, you know your offer is going to be much less. In this case, I would not take the time to meet with him. Rather, I would fill out a purchase contract and send it over to him. It will be rejected initially. However, after this guy wastes a ton of time failing to get his $50k, he'll see your cash offer contract on his desk... and all of a sudden it won't look so bad, anymore.
Demos Loizides
100 absentees is good. When you said "farm area," I thought you meant that you just picked an area, or zip code, and began sending letters. You are actually mailing to a targeted list. And that's what you want. Now, to take it a step further, you should narrow that list. So, for example, instead of sending to all absentees, you're sending to absentees who have at least 40% equity in the house, plus at least 3 beds, single family, etc, etc, etc. That way, you don't waste your advertising dollar, but maximize the effort.
Flipper/Rehabber · Tampa, FL · Member since 2008 · 403 posts · 109 votes
13y
Leon D
When creating relationships with other wholesalers and realtors, just make sure you know that you are there to help them, and to work with them, not as competition. If you can show them how your relationship can help them make money, they will welcome you.
And, you're never going to know it all. Don't worry about making mistakes. There are no mistakes, but only opportunities to learn, grow and expand. So just get out there and do it.
Flipper · Hammond, LA · Member since 2012 · 2 posts · 0 votes
13y
Thank you, Andrew!
This information is very helpful. It is always appreciated when someone who knows what they are doing is willing to help the rest of us that are just getting started and needing an extra boost of confidence.
Acworth, GA · Member since 2012 · 2 posts · 0 votes
13y
Finding a mentor is my biggest problem. I mean I just don't have the funds to give them upfront. I want to learn the process. You can give a man a fish and feed him for a day, or teach him how to fish and feed him for a lifetime. (the saying didn't mention go out and buy a fishing pole,bait, or whatever else to go fishing). I would love to go with them and see what they do and ask questions and even do the legwork for them. That way I can learn to do it. I could bring them 10 deals n they could keep the $$$ for payment because that will help me with the deals afterwards.
Flipper/Rehabber · Tampa, FL · Member since 2008 · 403 posts · 109 votes
13y
Charlie Thommy
Sounds like you need to advertise your services as a bird dog. Instead of getting paid for bringing deals, ask if you can take your pay in education and training. There are challenges, though.
One, you are going to need to bring in deals that are going to close. We flip one or two for every hundred we look at. And, most investors are not coaches and mentors. It takes a specific type of individual to be able to teach, mentor and grow talent. Why are great athletes very rarely even good coaches? So, just because some investor agrees to teach you a few things for putting out his bandit signs, doesn't mean you're going to learn the business like you need to. Bottom line, you're going to be low priority, ans possibly be hooked up with someone who has no idea has to effectively convey information.
My advice is to get the funds needed and pay a proven coach to teach you. That way, you're guaranteed to learn the business in a way where you can take it and be successful. Save money, make more money, borrow money, use a credit card or find another way to get it done. IMO, that's the best way to approach this.
Indianapolis, IN · Member since 2012 · 3 posts · 0 votes
13y
my biggest struggle is just where to start i recently purchased a not so good Ecourse that just left me with more questions. I dont know where to start or what to do if certain situations were to arise. Also there is alot of gray areas for me that i need answers too before I would confident enough to market for my first deal. I need a good hands on mentor!
Flipper/Rehabber · Tampa, FL · Member since 2008 · 403 posts · 109 votes
13y
Nancy SmithCharlie Thommy
Because you won't close any deals. I get emails every single week from individuals asking... begging... me to take them on for nothing, which they will pay back from the profit of their first deal. And, when I was just getting started as a coach, I would sometimes oblige them. The end result is that not one of these people ever came close to closing a deal. They go through the trouble of typing up an incredibly long and engaging email, about how they can do this... if someone would just give them an opportunity. And, more often than not, as soon as I would give them that opportunity... I'd never hear from them again. The ones that stayed only did so for a week or two.
The fact is that if you have nothing invested, you have nothing to lose. And, when you find out that this business is challenging, and times get tough, you can easily just walk away. I've seen it happen, and personally experienced it, many, many times.
You, as the pupil, want to pay for coaching. Trust me. That way, you'll be invested and will fight instead of quitting. And, you will be a top priority to your coach. It's a win-win. So, stop looking for discounted coaching, and begin putting together a plan to come up with the needed funding. You'll be better off in the long run.
@nancy smith
You can't learn this business from a book or e-course. You can gain knowledge. But, ultimately, you must put action behind that learned information. And, who do you go to when you have questions? That e-course? You need a person...
Indianapolis, IN · Member since 2012 · 3 posts · 0 votes
13y
i get to ask the "mentor" questions via email but it takes forever to get an question answer maybe i shouldnt have used the term Ecourse this is an actual online mentoring program by someone who is out here making deals... i see ppl like to use the ACTION word and i believe that's just what im going to have to do take action and learn along the way...Im lacking confidence and fearing making a costly mistake that could ruin my reputation before i even have one or even worse lets say I dont have the correct contracts and something doesnt line up and i end up getting sued...im working on getting past this fear...i agree you need a person to actually talk to or meet with not an online course to help
Flipper/Rehabber · Tampa, FL · Member since 2008 · 403 posts · 109 votes
13y
Originally posted by Nancy Smith:
Im lacking confidence and fearing making a costly mistake that could ruin my reputation before i even have one or even worse lets say I dont have the correct contracts and something doesnt line up and i end up getting sued...
That's what your mentor is for, Nancy. With a mentor, those fears should be gone. If they aren't, you need a new mentor.
Indianapolis, IN · Member since 2012 · 3 posts · 0 votes
13y
your right im currently seeking a new mentor right now...im ready i just need that help from and a sucessful mentor to guide me and stop me from making costly mistakes and get me to making cash sooner than later...can you help Andrew PM?
Wholesaler · Charlotte, NC · Member since 2012 · 6 posts · 4 votes
13y
My biggest difficulty has been finding more information about the actual paperwork, contracts and forms that need to be filled out and/or exchanged in order to close and complete a wholesale deal. It seems like this is different in different states. I'm a new investor out of Charlotte, NC and feel like I understand most of the other parts of wholesaling, except this potentially most important part. Thanks for anything you can add to help!
New York City, NY · Member since 2012 · 4 posts · 0 votes
13y
I need to partner up with someone that has knowledge on the basics of creating the opportunities for a wholesale flip (New Jersey / Hudson CO.). I need to know how I can find buyers to work with, and how do I maintain them? What are the best strategies to use to generate buyer / seller leads?