All Forum Posts by: Sarah Castor

Hi Sarah!

Have you looked up Wholesaling Inc. on YouTube? Or look up Lauren Hardy as well (I think she is associated with wholesaling inc but also has her own courses)! 

She teaches all about wholesaling virtually and I know she has some coaching programs as well. :)

I hope this gets you going in a good direction! Good Luck!

-Lexey 

@Sarah Castor I think most would agree that the deal comes first. You often hear that finding an end buyer should be fairly straightforward if you have a solid deal under contract. Most cash investors have similar criteria when it comes to SFH off-market investments. Nevertheless, it takes time to find a deal, in the meantime, you should also be networking with buyers regardless and start establishing relationships upfront. Hope this makes sense and helps!

I do student rentals so proximity to $2 vodka is my #1 driver.

@Sarah Castor getting your RE license will help you get started and get a better understanding of the RE Law. Nope, you can not wholesale with an active license in most states and as an license, all your transaction goes over your affiliated brokerage and BIC. 

a lot of people think that Wholesaling is an easy start in the RE industry but I think it's the opposite. Much easier is to get a license to work for a flipper or broker get experience and the funding ready and house hack. Wishing you an amazing start to your real estate career!

 In most states you can't market a property you don't own, unless you are acting on behalf of the seller as an agent. That rule exists whether you are a realtor or not, but being a realtor means you have been trained on ethics. Most wholesalers violate the marketing rule, because it would be impossible to wholesale a property without marketing it. They just use private buyers lists as a way to conceal their activities. Marketing by definition is any sales activity, so sending people an address, pictures or price are all marketing. 

One way you can do both is if you are buying the property. Some realtors do this. They say, here is my listing price and listing fee or here is my cash price. Obviously the listing price is much higher, but it takes more time and effort. You really want to have cash or line of credit if you are doing this. In this situation you are marking a property you own, so it is different. There is no rule against realtors buying properties.

Why are you doing it? Virtual wholesaling is not real for most who try. To be good at it you have to fully inundate yourself in your target market to understand where everything else, block dynamics, new builds, etc. Do you have experience understanding repair costs and even if yes, how are you going to get all the photos you need to property evaluate the repairs so that your offering is correct? Contractors are not in the habit of just going out and giving you estimates because you aren't going to complete the work. How are you going to determine the true ARV in your target market? How are you going to get sellers to sell to you? Do you have proof of funds to buy any of the properties? How will you build a virtual buyers list as a new wholesaler? These questions will help you get started, but wholesaling in general is a hard fail for 95-99% of those who try, doing it virtually is even less likely although it is possible.

You have to build relationships first which means you are building both lists at the same time. People say if you have a deal, people will find you, but that isn't always true, especially not when you are new and have no contacts. You should spend 6 months making relationships in your wholesale market and surveying who else is doing deals to see what they are doing wrong and how you can do better. If you have deals and no buyers, you have no business. If you have buyers and no deals, you have no business. Build investor and seller relationships at the same time and it all comes together.