Wholesaling: Starting Out

Wholesaling
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Wholesaling: Starting Out

David Denzy
Real Estate Agent · Columbus, OH · Member since 2019 · 60 posts · 30 votes

Hello everybody,

I’ve done all the reading and practice analyzing deals and I am finally comfortable to start taking action. Because I don’t have any money to throw at marketing yet, my plan is to drive for dollars and write all personal letters to distressed properties that I see in my specific market. I feel like personal letters are the most impactful, yet I fear that homeowners will be offended by me reaching out asking them to buy their house? Has anyone felt this way before?

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Jerryll Noorden
Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
6y

I remember when I started out, wholesaling.

I had no money either. Boy have times changed.When I came to BP with my questions, people actually were happy to help me out.

Now everyone sets out to insult others or try to sound more like they know more than the other by stepping and pushing the other down.

You all should really take a look at yourselves. Pathetic!!

Dude, pay no attention to all these clowns.

I started with no money, and I wholesaled my way to success.

The mistake all you negative "smart people" are making is simply this.

Wholesaling  is NOT lying to people telling them "I will buy your house" when you have no cash to buy their house,

Get it through your ignorant skulls. FOR ONCE AND FOR ALL!!

I FLAT out told my leads that I am NOT going to buy their house and that I was going to wholesale it. Spare me the BS whether it is legal or not. Cry me a friggin river!

I simply do not give a crap about your sand in your KooKoo about your wholesaler hate you got going on.

That is what I did. The sellers happily gave it a go! If you need to get a private money lender to back you up so you can make it "legal" just do what you need to do. I did it and I had no money of my own to buy anything. I was honest so the seller knew exactly what they were risking and it all turned out great

Now, I have plenty of success and I started with no money!

So go figure!

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

    If you have no money how can you honestly tell a seller you are buying their house? Just curious....

    8Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    6y

    Why would anyone sell their house to you if you can't close on the deal if you don't find a third party? From your post, you have no money, no buyers, and no real-life REI experience so what is your value proposition in the letters to distressed homeowners?

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    3Reply
  • Greg Dickerson
    Developer · Charlottesville, VA · Member since 2018 · 4k+ posts · 4k+ votes
    6y
    Originally posted by @David Denzy:

    Hello everybody,

    I’ve done all the reading and practice analyzing deals and I am finally comfortable to start taking action. Because I don’t have any money to throw at marketing yet, my plan is to drive for dollars and write all personal letters to distressed properties that I see in my specific market. I feel like personal letters are the most impactful, yet I fear that homeowners will be offended by me reaching out asking them to buy their house? Has anyone felt this way before?

    You really need to start with cash buyers. I wrote a blog post here going into detail how to wholesale the right way. 

    https://www.biggerpockets.com/member-blogs/12624/87948-how-to-wholesale-real-estate-the-right-way

    7Reply
  • David Denzy
    OP
    Real Estate Agent · Columbus, OH · Member since 2019 · 60 posts · 30 votes
    6y

    @Greg Dickerson

    Thank you for your help

    1Reply
  • Dennis M.
    Rental Property Investor · Erie, PA · Member since 2018 · 6k+ posts · 9k+ votes
    6y

    Oh geez another investor in here with nothing to invest 

    6Reply
  • Noah Smith
    Contractor · Gadsden, AL · Member since 2019 · 23 posts · 5 votes
    6y

    @David Denzy if you have plenty of Hussle you could make it happen, BUT you don't want to get a reputation for saying something and not following through, best bet make sure you have a clause in any contract making it easy to back out, or always have a backup plan. Or perhaps find buyers that want specific kinds of properties and try to find them. (Be careful make sure your not breaking any laws)

    2Reply
  • David Denzy
    OP
    Real Estate Agent · Columbus, OH · Member since 2019 · 60 posts · 30 votes
    6y

    @Noah Smith

    Thanks for your constructive advice. I am involved in meetups and have a network. I guess my confusion was that you needed a deal to interest cash buyers in working with you so that was my focus. I’ll reach out to my network and see if I can help them.

    0Reply
  • David Denzy
    OP
    Real Estate Agent · Columbus, OH · Member since 2019 · 60 posts · 30 votes
    6y

    @Dennis M.

    Thanks for your expert, yet better response. Much appreciated!

    0Reply
  • Zeke ListonBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    6y

    @David Denzy Are you planning on wholesaling these deals? Homeowners are usually turned off by wholesalers and will often just throw away personalized letters. I would suggest investing time in cold-calling but after you have found a buyer. That way you look professional and aren't scrambling to find a buyer when you find that distressed property an owner is willing to sell. Also, I would look into the rules and regulations of wholesaling in your area.

    Best of luck! 

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    2Reply
  • David Denzy
    OP
    Real Estate Agent · Columbus, OH · Member since 2019 · 60 posts · 30 votes
    6y

    @Zeke Liston

    That answers my question. Thank you!

    1Reply
  • David Denzy
    OP
    Real Estate Agent · Columbus, OH · Member since 2019 · 60 posts · 30 votes
    6y

    @Zeke Liston

    Yes- I do plan on wholesaling these deals. Like I said above, I’ve been reluctant to build a buyers list without having any deals to provide. I’ve learned from this discussion that the route that I should take instead is to find cash buyers and figure out what they’re investment criteria is.

    1Reply
  • Zeke ListonBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    6y

    Yeah and that makes sense. It'll just be a lot easier for you to try to sell the homeowners on selling their place if you already have a buyer in place. Do you plan on investing yourself? 

    [email protected]614-665-5793
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    1Reply
  • Seth Mceleney
    Rental Property Investor · Buffalo, MN · Member since 2019 · 23 posts · 11 votes
    6y

    @Jonathan Greene not sure if you've ever heard of wholesaling or what the steps are but you never actually buy the house so that's why he's starting with that. If you would like to learn more about it there's a ton of good threads on bigger pockets about why it's a great method of starting. Also it's not really REI, just figured I would try inform you a little better so you don't look confused.

    3Reply
  • Alex KhanPro Member
    Specialist · Southeast Michigan · Member since 2015 · 300 posts · 244 votes
    6y
    Originally posted by @David Denzy:

    Hello everybody,

    I’ve done all the reading and practice analyzing deals and I am finally comfortable to start taking action. Because I don’t have any money to throw at marketing yet, my plan is to drive for dollars and write all personal letters to distressed properties that I see in my specific market. I feel like personal letters are the most impactful, yet I fear that homeowners will be offended by me reaching out asking them to buy their house? Has anyone felt this way before?

     Would you be offended? You won’t make far in the business if you fear rejection or Think too much about wether or not someone will be offended if you offered to buy their house. (personally I get very annoyed with solicitations) 

    On the other hand, personal letters are great, Haven’t really put too many out myself but I have done 2 deals this way and 1 was a keeper that I sold on Land Contract. 

    There’s also many other free lead generation tactics. It’s just about taking action. 

    248-979-8119
    1Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    6y
    Originally posted by @Seth Mceleney:

    @Jonathan Greene not sure if you've ever heard of wholesaling or what the steps are but you never actually buy the house so that's why he's starting with that. If you would like to learn more about it there's a ton of good threads on bigger pockets about why it's a great method of starting. Also it's not really REI, just figured I would try inform you a little better so you don't look confused.

    They represent themselves as buyers and then walk away if they cannot sell the deal and screw over the sellers using lies to get out of the contract. Sorry way to operate leaving victims of deceit as they walk away.

    1Reply
  • David Denzy
    OP
    Real Estate Agent · Columbus, OH · Member since 2019 · 60 posts · 30 votes
    6y

    @Alex K.

    Thanks for the response. I agree, it all comes down to action. The best way to do it is simply to do it.

    0Reply
  • David Denzy
    OP
    Real Estate Agent · Columbus, OH · Member since 2019 · 60 posts · 30 votes
    6y

    @Zeke Liston

    The end goal to wholesaling is to save a little cash, get some some hands on deal experience, and eventually invest myself.

    1Reply
  • David Denzy
    OP
    Real Estate Agent · Columbus, OH · Member since 2019 · 60 posts · 30 votes
    6y

    @Seth Mceleney

    Thanks for providing more information, Seth.

    1Reply
  • Zeke ListonBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    6y

    @David Denzy That's great! Definitely make sure you get into investing yourself, that's where the real money is! Keep me posted on how everything goes! 

    [email protected]614-665-5793
    Forge Real Estate Advisors535 Reviews
    View Page
    1Reply
  • David Denzy
    OP
    Real Estate Agent · Columbus, OH · Member since 2019 · 60 posts · 30 votes
    6y

    @John Thedford

    That’s what a bad wholesaler does. It’s unfair for you to assume that I don’t already have a cash buyer behind me. It seems to me that “wholesaling” is a trigger of yours, but there’s a whole world of honest and successful wholesalers out there who use the hands on deal experience as a bridge to get into investing.

    4Reply
  • Alex KhanPro Member
    Specialist · Southeast Michigan · Member since 2015 · 300 posts · 244 votes
    6y

    @David Denzy @John Thedford 

    Wholesaler meets hard money guy charging 28% interest 😂. 

    All you need is John backing you and you can close on all the deals, do a prehab or clean out and list it on MLS.
     
    this is what I’ve been doing now for a lot of them minus the hard money of course. 

    248-979-8119
    3Reply
  • David Denzy
    OP
    Real Estate Agent · Columbus, OH · Member since 2019 · 60 posts · 30 votes
    6y

    @Alex K.

    Lol

    0Reply
  • John Thedford
    Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    6y
    Originally posted by @Alex Khan:

    @David Denzy @John Thedford 

    Wholesaler meets hard money guy charging 28% interest 😂. 

    All you need is John backing you and you can close on all the deals, do a prehab or clean out and list it on MLS.
     
    this is what I’ve been doing now for a lot of them minus the hard money of course. 

    I would love 28% any day LOL

    0Reply
  • Alex KhanPro Member
    Specialist · Southeast Michigan · Member since 2015 · 300 posts · 244 votes
    6y
    Originally posted by @John Thedford:
    Originally posted by @Alex Khan:

    @David Denzy @John Thedford 

    Wholesaler meets hard money guy charging 28% interest 😂. 

    All you need is John backing you and you can close on all the deals, do a prehab or clean out and list it on MLS.
     
    this is what I’ve been doing now for a lot of them minus the hard money of course. 

    I would love 28% any day LOL

    You and I both. The best I’ve been able to do so far was 11% on a land contract. 

    What is the Norm you see in your market for owner financing/ land contracts ? 

    248-979-8119
    1Reply
  • Jerryll Noorden
    Flipper/Rehabber · Wilton, CT · Member since 2015 · 4k+ posts · 4k+ votes
    6y

    I remember when I started out, wholesaling.

    I had no money either. Boy have times changed.When I came to BP with my questions, people actually were happy to help me out.

    Now everyone sets out to insult others or try to sound more like they know more than the other by stepping and pushing the other down.

    You all should really take a look at yourselves. Pathetic!!

    Dude, pay no attention to all these clowns.

    I started with no money, and I wholesaled my way to success.

    The mistake all you negative "smart people" are making is simply this.

    Wholesaling  is NOT lying to people telling them "I will buy your house" when you have no cash to buy their house,

    Get it through your ignorant skulls. FOR ONCE AND FOR ALL!!

    I FLAT out told my leads that I am NOT going to buy their house and that I was going to wholesale it. Spare me the BS whether it is legal or not. Cry me a friggin river!

    I simply do not give a crap about your sand in your KooKoo about your wholesaler hate you got going on.

    That is what I did. The sellers happily gave it a go! If you need to get a private money lender to back you up so you can make it "legal" just do what you need to do. I did it and I had no money of my own to buy anything. I was honest so the seller knew exactly what they were risking and it all turned out great

    Now, I have plenty of success and I started with no money!

    So go figure!

    13Reply
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