How can I bring value to any investors while wholesaling?

Question

So I’m new to real estate and I thought that wholesaling would be a good place to start since I don’t have the capital yet.

If you are currently an investor and you deal with wholesalers, what are some of your criteria’s. Also, what are some bad habits that I should avoid as a beginner?

Don Konipol · Answer

@Mohamed Abdirahman

If you have no capital, then you need superior knowledge.  Besides a firm education on real estate basics, I would suggest becoming an expert in a niche, whether that niche being a neighborhood, property type, or functional area like probate, bankruptcy, etc.  when you have knowLedge and expertise others don’t have, you will be able to utilize it to add value.

Barry Pekin · Answer

@Mohamed Abdirahman,

All good advice above.

If you want to know what criteria buyers are looking for, you need to ask that of your buyer pool.  You will find these people at your local REI meetups, local online REI groups, and wherever you run into someone who's a local investor.  Get to know them and what they're looking for.  One investor's treasure may be another's trash.

Bad habits?  Do NOT force a deal.  A deal comes from a seller who is motivated to act quickly in return for a discounted sale.  It is also a seller that you are HELPING, and not taking advantage of.  If you find a potential deal, and the numbers are too lean, don't start thinking things like maybe the buyer can do this for less on the rehab side, of like maybe they can sell it for more.  If the buyers see you coming up with deals that are too lean, you're going to get a bad reputation.  Find good deals.  Don't try to force them.

Ryan Luby · Answer

@Mohamed Abdirahman

Welcome to BP, glad you're here trying to get started.

This is a very common question and very common approach. Unfortunately because the barrier to entry for wholesaling is so low it appears to be the best place to start. And.. it CAN be done. Especially listening to this weeks Podcast you hear about a 20year old who is killing it, and started with a wholesale on his very first deal. ** This is the exception to reality, by no means the rule, or the way most people get started. I try to steer everyone away from wholesaling when getting started because you are far more likely to ruin your chances of investing successfully long-term than you are to jumpstart a great investing career.

Obviously this is just my opinion so take it for what it's worth. You have to find out what works for you but I would encourage you to keep learning, saving, working on your personal finances, while educating yourself in real estate and networking with other real estate professionals. Eventually you'll find someone you can either work with and learn from, or someone you can have enough of a relationship you can model what they're doing to increase your chance of success.

99% of people who successfully get started and make a habit of investing in real estate got started because they found someone they could learn from, who is already investing. If you listen to this week's podcast ep. 371 even William Brown who made a ton of mistakes on hist first wholesale, got started and he mentions a couple of times how some very experienced investors who helped him out.

Long story Long...

- Network to find someone you can add value to, learn from, or model their success.

- Educate yourself and house-hack to start small, and learn all phases of investing while minimizing the risk

- Find a partner with experience who will let you follow them through a deal to learn for free

Hope this helps

How can I bring value to any investors while wholesaling?

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