What mistakes did you make wholesaling?

Question

I am looking to become a "Wholesaler", but there are a few things that I want to make sure I do right. There are alot of so called Wholsalers out there, and I would rather not go down that path. I know that it takes time and money to do anything in this world. I am willing to put in both, but I want to make sure I invest my time and money in the right areas. If you have any advice shoot away.

What helped you to succeed?

What mistakes did you make?

What was your main method that helped you to succeed?

Thank you =]

What helped you to succeed?

What mistakes did you make?

What was your main method that helped you to succeed?

Thank you =]

Travis Daggett · Answer

Good mentors and relationships w/ agents, contractors, inspectors, appraisers, attorneys, and title companies helped me succeed.

The biggest mistake I've made (I'm sure I'll make more) is buying properties to rehab and retail instead of focusing on wholesaling. Then, my funds were tied up w/ the retail deals and I had to pass on wholesale deals.

I've had the most success w/ wholesaling HUD's and courthouse deals.

Arktavious Sally · Answer

Ryan Outon 1. Networking with other wholesalers, Forums like Bigger Pockets, Educating myself about wholesaling.
2. Not enough marketing. "Great marketing drives leads and sales".
3. Belief and Faith... then taking massive action.

Wholesaling is simple, but not always easy....

Wayne Woodson · Answer

The mistakes that I have noticed and corrected in the beginning of my business are as follows.

1.	Making offers that were not low enough.
2.	Not marketing a property thoroughly (or not at all except on Craigslist).
3.	Not evaluating properties correctly (use the right comps).
4.	Not enough marketing pieces to make a deal (100 yellows letters a week vs. 50 or 10).

Ryan Outon · Answer

Will Barnard Agreed, I will do my research. Thanks will

Will Barnard · Answer

Knowing what homes are worth would require you to know your market area and know the comps and how to adjust them. That is an art and takes practice. There are some formulas, but as a whole, you need to learn the art and can only do so by driving your areas, learning the market, walking lots of homes, and having access to real comps. Then, you need to learn how to adjust those comps.

For instance, with cars, if the condition of the Ford Explorer was perfect, but the same year, same model Explorer was in poor condition, it would have a different value. You know how to adjust for that. Same with RE. You need to adjust for discrepancies in beds/baths, lot size, home square footage, ammenities, location, etc. many more factors go into adjustments in RE

Ryan Outon · Answer

Will Barnard Yeah, your probably right. I just thought it might help me understand what certain homes are worth, in turn helping me to make more acurate bids on homes. After I sold cars for about a year. I could give you a very close estimate of what any car would be worth trade in. It probably doesn't work that way with homes though haha

I probably could go about learning that info another way too...

Will Barnard · Answer

With all that said, getting your license can have some advantages to you, but not in the training department.

Ryan Outon · Answer

Wayne  Woodson That is very interesting. I haven't given them a shot yet. I just joined an investor club in Phoenix and they seem to think that mail marketing is a waste of time haha. I will give it a shot anyway.

Will Barnard I'm thinking maybe I should try to get my RE license and become an agent to learn more about the anatomy of RE. It seems most people that have become investors in the business have started there.

Wayne Woodson · Answer

As corny as they look they surprisingly do work. It's kind of like bandit signs. The nice professional looking ones that you would think work don't but some hand drawn sign on posterboard that says "we buy houses" does.

Will Barnard · Answer

What helped me succeed was the fact that I was already a successful rehab flipper so I knew the numbers inside and out, new how to accurately price exit values and rehab costs.

The only mistakes I made were not keeping several of the deals I wholesaled. I could have killed myself finding more money and time to complete them myself making more of the spread. I only say this because of the lack of deals found today, none the less, each and every wholesale deal was profitable and without the rest of the headaches of doing the rehab and selling it.

What mistakes did you make wholesaling?

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