Newbie at real estate wholesaling?

Question

Hello to all BP members. My name is Melvin Muckeray and I am a chemical operator at dow chemical. I am a husband with four kids. (I love very much) I love fishing and playing video games.(big kid at heart :) ) I am new to the whole real estate scene. I just started getting into the idea of wholesaling. I have been reading alot about it and I enjoy what I have been reading so far. I am very nervous because I do not know how to start. Some people or "gurus" say put signs up and others say make phone calls. Now the question I propose to everyone is what was your first time like and what method of advertising did you use?

Ned Carey · Answer

The first time will be scary.

Get an education how to do this. You can do that here on BP

Get an education on your local market. Go out and look at 50 to 100 properties  and learn the values.

The more you know especially about valid the more you will be confident on your first deal.

Nii Okai · Answer

@Derek

Congratulations on your purchase. But if I may ask, what  if after sending your letters out, say 2 owners called you to say they want to sell to you,  what will be your next step?  Do you already have a team to support you? If you do not have a team yet, get one asap. Be prepared before you set your foot out.

Wishing you the best

Nii Okai

Nii Okai · Answer

@Melvin,

I take this opportunity to welcome you to the REI world. In my opinion, what you need most, is to find an experienced investor to be your guide/mentor. If there is a REI Club where you live, join the club, make friends. Invite a few people to lunch and pick their brains and ask if you could call for advice. Eventually get a mentor Having a guide will boost your confidence tremendously. The guide/mentor will help you create your team (yes, this is a team game) and from there, all else will be easy.

Experience is the best teacher, yes, but not your own. Learn from other people's mistakes.

I wish you good luck

Nii

Andy M. · Answer

Handwriting your first set of letters is probably a good learning experience, but I wouldn't recommend it for your long term success. But it is a right of passage.

Good luck! When people call follow up is key, make it happen!

Account Closed · Answer

i am also new and am just starting. i got a mailin list from listsource.com.  http://www.youtube.com/watch?v=-bUvhySwMOE and i just got 400 people and now i am going to send them all a letter. i just got my 400 stamps and envelopes a few hours ago. now i just need to start writing!

goodluck.

Andy M. · Answer

There has been some great advice on here already, but let throw my two bits in.

1. Education is key (already mentioned here and I second it) read on BP, find good books, surround yourself with others who are where you want to be.

2. Don't get caught in the trap of, "I don't know enough". You will learn by TAKING ACTION. The failure rate is pretty high for new real estate investors because most are afraid to take action. The best way to learn real estate is to jump in. Everything works if you do. Don't be afraid that you don't know enough, fail forward.

This business works and you can make a lot of money, the difference I see in people who make a lot of money in real estate and those who fail is action.

Melvin Muckeray · Answer

Thanks for all the awesome feedback.

Mary B. · Answer

Hey Melvin,

Everyone is nervous on their first deal no matter which form of real estate investing. It goes away as you gain more experience. My first deal was a fix and flip. I found a motivated seller in the daily newspaper and it was a headache because although I had 720+ FICO I couldn't get conventional financing because the house was under $25K. The owner would call me every two or three days to see if I found a lender.... and why not and so on... My mortgage broker got her mother-in-law to loan me the money and I refinanced it immediately to repay her.

Kudos,
Mary

Melvin Muckeray · Answer

What was your first time like.?  I thank you for the reply.

Braden C. · Answer

Melvin Muckeray It's not as simple as putting signs up or making phone calls. You need to have several other things in place prior to marketing for deals.

Wholesaling is a business and while there are a lot of "gurus" who oversimplify the business, it's not as easy as it looks. It's not extremely difficult but you need a certain foundation of knowledge before you blindly go out and start making offers. The failure rate is extremely high, not because of it being difficult but because people get started without the proper knowledge. They lose steam quickly because putting deals together without any training or education on the business is very difficult.

I would spend a great amount of time here on BP reading through threads and asking questions. Good luck!

Newbie at real estate wholesaling?

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