Complete newbie to wholesaling. SOS

12 Replies

I’ve recently Started reading about wholesaling and I am desperate to get into investing. I have read four books on the topic, watched probably hundreds of YouTube videos, and talked to just about everyone I can reach. The only problem is that everyone has different advice and I can’t seem to gather a cohesive set of steps to follow. I’ve been driving for dollars and found just over 70 distressed homes on my list, and all I do all day is try to learn but I’ve just gotten no clue how to take the first action step or what it is.

I have no capital to invest (yet) which Is why I figured wholesaling was my best path, but I just really need some help. I’m willing to split my profits 50/50 with anyone willing to help show me what to do/how to close a damn deal !!😩 I just downloaded this app and I really hope that this isn’t against the rules to ask for, but I’m just so lost and I’m trying to do whatever I can to find someone who can help me learn. 

A wholesaler does the same work as an agent, the only difference is in how you get paid.  Follow up on all your prospect houses, and act as their agent. An agent can sell a house fast, within a week, and Net the seller more money, when selling “fixer uppers”.

Remember that the properties you are looking to wholesale (distressed) shouldn't qualify for a traditional mortgage loan. This is a huge value point. Also, buying in "as-is" condition is a huge benefit to the seller. Half of the people who own these properties never think to sell because they know they will have to fix everything on the property first to list it. This can be a major value point to a property owner/seller.

Think of these people being in a problem and needing to sell their home but can not afford to fix everything nor has the time to list it.

I suggest keeping this mindset and finding a way to talk to the owners of these properties. That's your first step: Talk to the owners of the properties on your list that you've built and offer to buy their home in cashhh.

Originally posted by @Carl Flint :

Remember that the properties you are looking to wholesale (distressed) shouldn't qualify for a traditional mortgage loan. This is a huge value point. Also, buying in "as-is" condition is a huge benefit to the seller. Half of the people who own these properties never think to sell because they know they will have to fix everything on the property first to list it. This can be a major value point to a property owner/seller.

Think of these people being in a problem and needing to sell their home but can not afford to fix everything nor has the time to list it.

I suggest keeping this mindset and finding a way to talk to the owners of these properties. That's your first step: Talk to the owners of the properties on your list that you've built and offer to buy their home in cashhh.

 That is actually wrong. 87%+ of our deals are from people that have ZERO issues. House is totally OK. They just don't want to deal with agents. So this is misleading. And to show you that I am not just a random guy that just gets 3 leads a year.... my numbers are extremely accurate.

We get about 4 to 12 free motivated seller leads every single day organically. (So no paid ads. This is important because these are true leads.  Facebook ads and any other form of paid marketing (except, to certain extent, PPC) , bandit signs, cold calling, driving for dollars, door knocking, are not! Those are "opportunistic" leads. They just happen to see your sign or ad, and then say "hmmm... I'll check it out".

I see a lot of investors seriously doing things wrong just because of a simple erroneous definition of a lead.

Here is my definition of a lead.

A lead is not someone that wants to sell their house.

A lead is not someone that needs to sell their house.

A lead is not someone that desperately begs you to please please please buy their house otherwise they are screwed.

None of that.

A lead simply is anyone willing to sell their house below market value regardless the reason.

So every time you do marketing from a purchased list... wrong. You are gambling with your money.

Now Samantha, you are severely overthinking the wholesaling process. Wholesaling is simple.

Find a motivated selelr, explain in full transparancy what the wholesaling process is (yes tell them you have no intention to buy their house), get the hoiuse under contract then sell the contract.

It is THAT simple!

BTW, BECAUSE we tell our sellers we have zero interest in buying their house( when we think that deal is a better fit for wholsaling  as we usually flip) they prefer us to wholesale rather than buy it ourselves.

As you can see, the only challenge when it comes to wholesaling is, getting leads. MOTIVATED seller leads. Once you have that you WILL be filthy (rich).

Get a website, make it credible work on SEO and you are set.

Also, don't push the whole search for mentorship too hard. Psycologically it will limit self confidence in your abilities.

There are 2 kinds of people out there. (well there are amny.. but go with me on this).

Those that immediately throw their hands upo in dispair when stuck and ask for help, and those that will simply NOT ask for help and they will figure it out even if it cost them their lives.

I am the latter, good or bad, I have now trained my mind my entire life there is nothing I can't handle and this has made me extremely successful in REI, and my personal life.

You don't just NOT need a mentor, you SHOULDN'T get one.

It is really pretty damn simple. (I didn't say easy) I said simple!.

Good luck

Your first STEP is to get a house under contract to buy.  This is simple, ask them what they want, negotiate the best price and TERMS you can get.  Then put that house on the market. There is no need to be deceptive here. I tell sellers right off the bat, "this house isn't for me, but I might be able to get you a buyer who will pay that price. IF I bring you a buyer, I wont charge you a penny. The buyer will pay me. so let me ask you, am I the only person on the plant you will sell this house to at this price?" NOBODY has ever said yes to that question, and I have now established my relationship to the seller. We are essentially partners in this deal. You are now equipped to be a wholesaler !!! 

To get em

Josh 

Originally posted by @Josh Caldwell :

Your first STEP is to get a house under contract to buy.  This is simple, ask them what they want, negotiate the best price and TERMS you can get.  Then put that house on the market. There is no need to be deceptive here. I tell sellers right off the bat, "this house isn't for me, but I might be able to get you a buyer who will pay that price. IF I bring you a buyer, I wont charge you a penny. The buyer will pay me. so let me ask you, am I the only person on the plant you will sell this house to at this price?" NOBODY has ever said yes to that question, and I have now established my relationship to the seller. We are essentially partners in this deal. You are now equipped to be a wholesaler !!! 

To get em

Josh 

I wouldn't ask them what they want. You give them the idea that what they want actually matters. It absolutely does not.

We get a ton of calls from sellers that ask how the process works. Here is what I tell them.

1) We figure out the ARV

2) Then we schedule an appointment where we figure out how much it will cost to bring the house to ARV condition.

3) From those 2 numbers "We will make you an offer that works FOR US. IF that offer also works for you, great, we can close within 3 days bla bla bla

4) Not only will this set the scene that the numbers are the numbers. There is no negotiating!! But also, that is the truth!! This is us being 100% transparent.

If they don't like it.. guess what...

I have 43 more leads to handle for that week. Don't care. I am not going to fight and sit and wrestle with anyone to make a deal. We are the ones THEY need, we don't need them. Investors usually have a scarcity mindset... that they need sellers. That is SO not the case. Don't like my offer, move out of the way, there are 40 more people that want an offer from us. Good luck to you.

THIS is the mindset you need to have. And this is why it is so simple for us, and so complicated for so many of you. It is hard and complicated because y'all MAKE it hard and complicated. You need to put yourself in a position where YOU call the shots. This is through market dominance through SEO.

If you want to know more about how to do it, go tot he biggerpockets conference. I will be speaking there exactly how to do this step by step!

wouldn't ask them what they want. You give them the idea that what they want actually matters. It absolutely does not.

IF you dont ask them what they want, then you have deprived them of the opportunity to say something that is lower than you offer. That is how I occasionally buy houses for one dollar.  

Originally posted by @Josh Caldwell :

wouldn't ask them what they want. You give them the idea that what they want actually matters. It absolutely does not.

IF you dont ask them what they want, then you have deprived them of the opportunity to say something that is lower than you offer. That is how I occasionally buy houses for one dollar.  

1) have you EVER asked anyone what they want for their house and they gave you a lower number than you were going to offer them? Doubt it.

2), it is not about getting the house for as low as you possibly can. It is about throughput. It is about a system. Don't fret the details, it is about how many houses to put under contract and make money as soon as possible and move to the next.



From the answers and advise you give I really doubt you have wholesaled before (don't mean it as an offense. But I do feel that people that have not done wholesaling and are not experts at it, shouldn't give advise.

I really get that you are trying to help and that is very admirable, but I constantly see people give advice that is simply regurgitated stuff that is just bad advise and people take advise from non expert just because they have heard it mention before and thus assume it is correct.

Again, this is not a jab at you, I just feel strongly about this.

Instead of asking what they want for the house, ask them what they would list it for if they were an agent, or what they would buy it for if they saw someone else selling the property.

This forces them to see things the way they really are and not focus on what they want for the house.

I would focus on finding a buyer first and then finding them a deal. Your license can be a huge benefit if you throw your commission in to the deal or list for 1%

Originally posted by @Danny Jenkins :

I would focus on finding a buyer first and then finding them a deal. Your license can be a huge benefit if you throw your commission in to the deal or list for 1%

 No, do not focus on finding a buyer first.

No don't focus on getting a contract first.

You focus on getting both!

See again a lot of you are making that mistake.

Instead of finding a buyer first or selelr first, here is what you need to do.

Make ABSOLUTELY SURE you do not sign a contract UNLESS it is a good deal. THAT is the trick.

What does this have to do with finding a buyer vs. seller first?

I'll tell you.

NO buyer is going to pass on a contract that simply makes sense. So.. if you simply get a good deal, regardless you having a buyer ligned up or not is irrelevant. BECAUSE of that contract you will have no problems finding a buyer when you do get a contract signed. Get it?

So instead of focusing what you should find first... you focus on both.

If you find a buyer and have no deal, no big deal.

If you get a contract signed but no buyer, no big deal ... as long as the contract is a good deal

I really hope this will FOR EVER silence that stupid ridiculous debate on whether to find a buyer vs seller first. It is a stupid debate!

Hope this helps!