Wholesaling houses is appealing to many beginning investors because it can be done with minimal risk and little to no upfront cash. Following are some of the most frequently asked questions I receive from folks who are looking to jump into the wholesaling arena.
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6 Key Wholesaling Frequently Asked Questions
Do I need a lot of money to get started wholesaling?
While it is much easier to get started if you have some cash set aside for marketing expenses, deposits, etc, it is still possible to complete wholesale transactions with little to no upfront cash. When I got started, I was a struggling bartender barely scraping by. I was able to complete my first few wholesale deals by marketing for motivated sellers on a shoe string budget, and only putting down a small deposit when I finally got a property under contract.
Do I need to hire a mentor in order to succeed as a wholesaler?
While I am personally in favor of hiring a competent, experienced, successful mentor to shorten your learning curve, it is definitely not a necessity. There is more than enough information available on the internet for FREE to get you through your first deal. BiggerPockets, for example, has an excellent wholesaling forum where you can go and ask any questions that you may have about the wholesaling process.
Should I build a buyers list before I start looking for deals?
While it is a lot easier to sell your deals if you already have some investors lined up to buy them, this shouldn’t stop you from getting started. In fact, you can be working on building your buyers list while simultaneously looking for deals. The fact is, if you get a smokin’ deal under contract, even if you don’t have a buyers list in place, you will not have a hard time finding an end buyer for it with just a little bit of marketing.
How many buyers should I have on my buyers list?
When it comes to your buyers list, keep in mind that quality is much more important than quantity. I know of wholesalers who have thousands of names on their buyers list, but the reality is that only a handful of the people on it are actively buying properties. Don’t get hung up on thinking you must have a huge list in order to be successful- the truth is, you only need a handful of active buyers to get the ball rolling. (To learn three fast, easy ways to build your wholesale buyers list, check out this article).
Do I need to have good credit in order to wholesale houses?
You can wholesale houses whether your credit is good, bad, or downright ugly. When you are wholesaling, you are simply putting a great deal under contract, and then assigning that contract to an end buyer. Your credit does not come into play since you will not be obtaining financing on the properties that you are wholesaling.
What do you think is the key ingredient to becoming a successful wholesaler?
If you want to become a successful wholesaler, you’ve got to be willing to hustle! Deals don’t generally fall out of the sky and into your lap, and if you aren’t willing to take massive action to find those deals and put them under contract- you aren’t going to get very far. You can buy every wholesaling course known to man, and read every single wholesaling article on the net, but none of that information is going to do you any good unless you get off your behind and TAKE ACTION!
If you have any other questions about wholesaling houses, feel free to leave them in the comments section below, and I will be happy to answer them for you.