My Wholesaling Journey-- hopefully this will be a LONG thread.

My Wholesaling Journey-- hopefully this will be a LONG thread.

Real Estate Investor · Weehawken, NJ · Member since 2012 · 79 posts · 19 votes

Hi all,

I am in the process of starting wholesaling. After a previous stint financing a couple real estate projects in '08, I petered out. Recently, I've since decided to focus again, but this time in wholesaling. My intent with this thread is to keep me focused. I've been inspired by many of the success stories on various threads and hope being engaged on this thread will help push me through the trials and tribulations.

I've read a TON of posts and here's where I am:

Knowledge: Reading the BP blog, BP posts & BP Podcasts have been very valuable. I have also read every blog post by Sharon Vornholt ( [REMOVED]) & Seth Williams ( [REMOVED]). I have also read a couple books and recently very stupidly bought a $700 guru course in my local REI club on subject to. It was stupid because the course overpromised and really under delivered. There was no substance whatsoever.

Interestingly though, it was a good thing I bought this course because it was a good reality check: I can spend a ton of money on books/courses that may or may not be worthwhile, OR I can spend that money on marketing and gain real knowledge when I need it. I learn much quicker when a potential check is on the line. I recently heard that "Knowledge without action is entertainment". So, I'll figure it out as I go.

Marketing: I will be sending a monthly DM YL campaign to absentee out of state SFR owners. I plan to hit this group every month as a sustained effort over time. Initially, I will be sending ~1200 per month broken up weekly. My first drop will be end of next week. My goal is to effectively work as many leads as possible and will be testing my CRM, phone dialogue and negotiation. Once I get up the learning curve, I want to scale my marketing up much more. I plan to focus on other criteria as well.

Because there is a huge learning curve in too many aspects, I am outsourcing my YL campaign (thanks Jerry Puckett). Yes, I could do it cheaper myself, but I want to leave this aspect to someone who is an expert. I do not want to wait months and money to find out I had the wrong starting point (wrong list, wrong message, wrong font, wrong stamp, etc). I really admire the people handwriting many YL's weekly-- there's no way I could do that and learn the other aspects of the business well. My goal is to become successful at wholesaling and I am fully aware of the many difficulties. I want to accelerate my learning curve and suspect too many newbie's give up because there's too much to chew on.

Lead collection: I am using Zoho as my CRM. It is free, has a lot of features and gets some pretty good reviews. I use salesforce.com in my normal dayjob and Zoho seemed comparable in terms of features. Salesforce isn't worth the monthly cost for a one man shop, IMO. Zoho handles direct mail campaigns and lead tracking. What I like is that I can automatically attach correspondence via email and can really focus on my leads.

Website/Squeeze page: In the process of building both. I bought Chris Cho's squeeze page and for $67, it seemed like a no brainer-- no need to reinvent the wheel. I will be building a more detailed and elaborate website for buyers/sellers and investors.

Networking/Mentors: I've met a number of people at my local REI clubs. Some more helpful than others. I have one full time wholesaler that is willing to help me through deals. She and I farm different areas, so it seemed like a good fit. I also have a rehabber that wants to "help" me wholesale deals, in return for 1/2 fee. I may use him as I know that he is a local player and the education on tougher deals may be worth it. I also want to rehab, so I am thinking that I can get him to teach me to rehab for a first look at my deals.

Where does that leave me?
1. Need to learn the process a little better
2. Need to get comfortable on the phone talking to seller
3. Need to learn comps and rehab costs better
4. I don't have a buyers list, but am i wrong in thinking that in this market, a good deal will sell itself? I do have a few contacts from my REI club.

That's about it for now. Sorry for the long post, but hoping that there's many more to come.

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Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
13y

Its just life making sure you really want it badly. I look back at those days now and smile, I'd be lying if I didn't also remember those days of being nearly in tears over a situation or a deal just taking me out at the knees.

This is a business for the warriors, you have to want that first check more than you want to breathe. It will happen, keep it up!

See this reply in the discussion

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  • Flipper/Rehabber · Greeley, CO · Member since 2013 · 2k+ posts · 1k+ votes
    13y

    Carlos Ayuso,
    You have to check your local laws. In Colorado a licensed Real Estate agent cannot pay any referral to someone who does not have a Real Estate license unless they have nothing to do with Real Estate business. If my cousin Bob sends me a lead and Bob is a pilot who has never had anything to do with RE than I can pay him a referral. If a wholesaler sends me a lead for a listing I can pay them no referral whatsoever.

  • Wholesaler · Phoenix, AZ · Member since 2013 · 36 posts · 7 votes
    13y

    Mark Ferguson Thanks I will defenitly look into getting a RE lic but thats not what I want to do, I want to be like a repersentitive/Advisor to the seller, I just want to figure out a way to get leads rather it be in wholesaling or getting a percentage from a RE agent for a retail sale on a property. The situation with Brian L with that 14M Property really got my wheels turning those deals is what I want to focus on, what if that customer would settle for 13M cash like he told them, Im pretty sure he would figure out a way to get that lead. I'll do my research. Thanks for the input.

  • Real Estate Investor · Cleveland, OH · Member since 2013 · 173 posts · 18 votes
    13y

    Brian L., Great job Brian, very interesting journey. I look forward to seeing more post and wish you much success in this business.

  • Real Estate Investor · Weehawken, NJ · Member since 2012 · 79 posts · 19 votes
    13y

    Jerry Puckett asked that I update, so here's where I am....

    Still looking for my first deal. Have come VERY close twice. One time, I botched it by scaring the seller off. I misspoke and am kicking myself for it.

    The second time, I wasn't quick enough on the draw. I hesitated and didn't get it under contract. I stupidly thought I should line up the moon and the stars before getting it under contract. Another investor swooped in and got it under contract. I subsequently saw them post about it on a FB group I belong. Screwed myself out of 12k.

    Not surprisingly, the vast majority of callers aren't motivated. Very few are. I cannot stress how important building rapport is. It's easy to tell motivation now. I was very nervous in the beginning and now, not at all. Been called many insulting names. I had one guy today tell me that he receives 4-6 letters a month and mine stuck out because it was personalized and struck a cord with him. Each letter builds on each other. Told me that he saved my letters and tossed the rest. Think it was the 3rd (or maybe even second?) letter in the rotation ....ask @jerry Puckett for more info. I cannot stress how much positive feedback (and great response rates!) I have gotten from his letters. Anyways, I had a great conversation with him and who knows if it leads anywhere.

    I need to improve on my lead capture and VA phone system. Unfortunately for my wholesaling biz, my day job has taken off. May be in London for a month either in late August or September. It has made it much tougher to make calls. I'm looking to upgrade my VA. Currently, they only get the house details. I need to find someone who can better gauge motivation and then pass me the leads. I cannot stress how important it was for me to handle as many calls as possible initially. You cannot run a wholsaling business without being on your A-game on the phone. You can't learn phone skills without being on the phone. That said, I'm now ready to improve my VA support. Any tips for training a VA or better yet, a great VA recommendation would be much appreciated. :)

    Where does this leave me? Hungrier than ever. I want a deal. I want it badly. I spend every waking moment working. I don't watch a lick of TV anymore and barely go out. I spend as much time as possible on the phone. When I'm in the car, I listen to a RE or business audiobook. I read articles on negotiation. I study phone calls that my mentor has recorded for me. I listen to podcasts. E-myth revisited? Yep. The magic of thinking big? Yep. The 4 hour work week? Yep. BP Podcasts? Check. My fun will come in the form of a check. Hopefully sooner rather than later.

  • Real Estate Investor · Hagerstown, MD · Member since 2013 · 276 posts · 107 votes
    13y

    Brian L., Thanks for the update. I have been following this post and was wondering about your progress recently. It sounds like you are being persistent and consistent...I am hoping you get your check soon.

  • Real Estate Professional · Salt Lake City, UT · Member since 2010 · 608 posts · 163 votes
    13y
    Originally posted by Brian L.:

    Where does this leave me? Hungrier than ever. I want a deal. I want it badly. I spend every waking moment working. I don't watch a lick of TV anymore and barely go out. I spend as much time as possible on the phone. When I'm in the car, I listen to a RE or business audiobook. I read articles on negotiation. I study phone calls that my mentor has recorded for me. I listen to podcasts. E-myth revisited? Yep. The magic of thinking big? Yep. The 4 hour work week? Yep. BP Podcasts? Check. My fun will come in the form of a check. Hopefully sooner rather than later.

    This is why you will succeed.

    I still get very agitated when my competition gets one from me. I am talking about the competition that markets the same niches you do. The guy that is always there when sellers schedule us all at the same time. The guy that negotiates with the seller better than you did and they get the deal even after a verbal acceptance. Just makes me want to be better.

  • Hawthorne, NJ · Member since 2013 · 10 posts · 1 vote
    13y

    I think I have, all of BP behind me when I say, Go Brian Go! Here it is almost 12 AM and I can't go to sleep because I am up, having read this entire thread. Brian I'm so excited for your success for right now, I believe it is right around the corner.You've given me such encouragement in the reading of this thread. I am in insurance sales and I know how hard it can be to speak on the phone and develop rapport with individuals but as your example proves, true learning is in the doing. Because I don't think any book could've taught you the way experience teaches. You give much hope to the individuals who are just starting out just like you, who are spending day and night scouring the pages of bigger pockets looking for answers. I believe what you're doing, is the full embodiment of what bigger pockets stands for. An online community seeking to develop and add value to its fellow members. Brian, thank you for the example that you have left in the pages of this thread. Thank you again and keep pressing on.

  • Real Estate Investor · Weehawken, NJ · Member since 2012 · 79 posts · 19 votes
    13y

    Thanks gents. Stay tuned. :)

  • Real Estate Investor · Weehawken, NJ · Member since 2012 · 79 posts · 19 votes
    13y

    Well, I did tell you to stay tuned: 1st property under contract!

    Probably not going to get rich off this deal, even if I didn't have a 50/50 split with my mentor. All my energy will be focused on getting this one sold.

  • Real Estate Agent · Milwaukee County, WI · Member since 2009 · 3k+ posts · 525 votes
    13y

    Brian congrats on 1st property under contract

  • Real Estate Investor · Weehawken, NJ · Member since 2012 · 79 posts · 19 votes
    13y

    Verbal agreement on price for 2nd property. However, running into a snag as my seller has tenants and doesn't want to agree to showings. Thoughts?

  • Rental Property Investor · San Diego, CA · Member since 2011 · 1k+ posts · 1k+ votes
    13y

    Pretend to be an insurance guy or appraiser for a refi.

    Doesn't scare the tenants then.

  • Real Estate Investor · Weehawken, NJ · Member since 2012 · 79 posts · 19 votes
    13y

    Thanks Tim. Seller is awfully demanding now that we agreed on price.

  • Real Estate Agent · Austin, TX · Member since 2013 · 14 posts · 1 vote
    13y

    @Brian L. this is a great thread. Thanks for sharing. No updates in a while. How's it going? Any success moving that deal?

  • Real Estate Investor · Weehawken, NJ · Member since 2012 · 79 posts · 19 votes
    13y

    Been very busy on the phone... Geesh, who has time for BP? :)

    Here's where I am:

    -2 deals that have hit snags. Trying to resolve both. Will post more details when I can.

    -2 more promising potential deals I am trying to get under contract.

    Right now, I am running into an issue in which I may need to be in London for all of September for my day job.

  • Anson YoungBusiness Member
    Flipper/Rehabber · Denver, CO · Member since 2009 · 1k+ posts · 726 votes
    13y

    Great work Brian!!! I'm following this closely!

  • Real Estate Investor · Weehawken, NJ · Member since 2012 · 79 posts · 19 votes
    13y

    I'm pissed off. One of the deals that I had a verbal price agreement on hit a huge snag. Seller is absentee landlord who is motivated. She was very concerned about having buyers come through and scare her tenants. She was offering one showing. So, I gave her an option of:

    1. Allow me to show a limited number of times. Five to be exact.

    OR

    2. Keep it at one showing and give me a 30k price reduction.

    Either way, i could move this and easily make 20k. I was convinced she would just give me 5 showings. What did she do? She put it on Craigslist for much more than she was gonna sell it to me for. At the price she is listing it on CL, it is about a 7% cash on cash return. No doubt she will get people looking at it, but will likely take many showings to get it done and likely not at her listed price.

    This sucks.

  • UT · Member since 2013 · 164 posts · 55 votes
    12y

    Have not seen an update on this. Still going at it? Did your under-contract deal go through? How about the absentee verbal price who then posted it on Craigslist?

  • Burleson, TX · Member since 2014 · 4 posts · 0 votes
    12y

    Just read entire thread!! Update please!

  • Investor · Dallas, TX · Member since 2013 · 1 post · 0 votes
    12y

    Agreed would love to hear the latest. @Jerry Puckett it sounded like you were a part of the marketing efforts of the OP. Can you let us know anything that has transpired?

  • San Diego, CA · Member since 2013 · 14 posts · 2 votes
    12y

    Read the entire thread. I am also interested in the outcome of this effort! Cheers!

  • Chicago, IL · Member since 2014 · 75 posts · 28 votes
    12y

    Learned a ton from this thread, Thanks for being open with the BP, Go Brian!

  • Accountant · Denver, CO · Member since 2012 · 154 posts · 61 votes
    12y

    Amazing thread, but I wonder if Brian ever got a deal?

  • Jerry PuckettPro Member
    Wholesaler · Fort Worth, TX · Member since 2010 · 1k+ posts · 1k+ votes
    12y
    Originally posted by @Brian Sims:
    Agreed would love to hnetworkhe latest. @Jerry Puckett it sounded like you were a part of the marketing efforts of the OP. Can you let us know anything that has transpired?

    Hey Brian,

    wow, I havent visited this thread in quite a while, looks like Brian got his wish for a long thread!

    So many of you eager for updates, I don't think Brian L would mind me sharing.

    Just as he was starting to get some really good traction as well as beginning to master some key skills, Brian had to leave the country for an extended period of time, so we suspended his campaign.

    When he came home, he found that he was going to be moving within a couple of months. We did not restart the campaign, but in the end, before he moved he reported getting two deals. I don't know the numbers, but apparently he got more out than he put in besides getting one hell of a good education and developing skills he can use any time any where.

    He is currently studying his new market, building a new network and getting ready to jump back in.

  • San Diego, CA · Member since 2013 · 14 posts · 2 votes
    12y

    Thanks for the update @Jerry Puckett . We hope to hear from Brian soon and keep documenting his experience. So far me and my brother have been sending direct mail yellow letters for 2 months in the San Diego area. Lots of calls and lots of unmotivated sellers, but we are gaining a lot of experience with the calls and will continue to market at full force! We will soon be marketing to a different area and a different criteria. We continue to learn from the site and all the amazing podcasts that Josh and Brandon put together. Thanks for helping the BP Nation!

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