This is basically what the idea of wholesaling has become. Everyone wants to do it and everyone thinks they can do it. Everyone thinks it's a stepping stone to becoming a real estate investor. Everyone is wrong. Some people get lucky, most don't. Some people become really good at the business of real estate and scale out of wholesaling, most don't. The amount of posts from new prospective wholesalers is mind boggling.
My grandmother (not really, they are both dead) called me last week and told me she wants to be a wholesaler because it's easy. I asked her if she had any money for marketing. She said no. I asked her if she had any real estate experience or special knowledge. She said she listened to one podcast and read half of an article online and that's how she decided to become a wholesaler. I asked her if she could close the deals that she couldn't assign. She asked me what an assignment was.
She then asked me the new wholesaler standard questions, but also told me that she posted them in a forum on BP without checking whether or not 1,843,012 people asked the same question before. She asked if she should build a buyers list first or a sellers list first? I asked her what her plan was for doing either. She didn't have one. I have to be honest, grandma was getting annoying at this point, but I let her continue. She then asked if she set up an LLC now for her wholesale company. I threw up in my mouth and just ignored that one.
My grandmother told me she heard that wholesaling was easy and anyone can do it. I asked her how she was going to calculate ARV. She said she doesn't ride those vehicles because they are dangerous. I asked her how she was going to assess repair costs. She told me she would just call a contractor and ask him or her to come out on every appointment with her, for free, just to give an estimate. I rolled my eyes and she pinched my cheeks because she can't see that well and thought I was advocating for her idea.
Oh, one more thing. My grandmother lives in New Jersey, but is sure she wants to wholesale in Austin, Texas because she heard it was a hot market. I tried to explain about how a hot market would be really hard to break into for a virtual wholesaler with no experience and no money and no real estate knowledge. She wasn't having it. She said the book she ordered was going to teach her everything even though it was free and to unlock the true knowledge you had to go to a $10,000 weekend Masterclass, which is why she called me in the first place. I pretended like our connection was failing. I'm skipping Thanksgiving with her tomorrow because I can't go through this all again.
You have hit on Rober Kiosaki's new book. My granmother's 1-2-3 steps to Wholesaling.
For every 100 people who tell me they are wholesalers, I probably meet one that is consistent and making money...and maybe 10 out of 100 that have ever done one deal. I think most think they can do it with no money and no risk including grandma.
@Jonathan Greene I didn't see in your post where your Grandmother asked you for any advice or help "Building her brand" so she can scale nationally in a few months when she gets rolling and has money in the bank.?? Or did I miss that?!?!
I so love those posts...
cf. "When will the real estate market bubble pop?" topics.
@Doug Pintarch , actually, you are on to something. I did end up going to Thanksgiving and while grandma was asking me for the 10k, she also started to talking about building her brand, especially on Instagram, even though she still has a flip phone. The details are coming...
@Lesley Resnick Rich Dad, Unrealistic Grandma I think it's called