Newbies: Master These 4 Major Areas of Real Estate Wholesaling FIRST


I have often heard from many investors that real estate wholesaling is a great way to gain a handle on real estate investing. Although I am not opposed to this philosophy, I do believe that in any area or niche, you must be willing to perfect the minute aspects before being responsible for greater areas.

You may be asking how is this applicable to real estate wholesaling and how can this be applied to me directly? Before diving into the areas of wholesaling, I want to preface this article by stating that you must become a student and a master on every level before truly excelling in your craft. There are many facets to real estate wholesaling: marketing, negotiating, property valuations, networking and team building.

Perfecting these skills and building a team does not occur over night. Many newbie investors want to forgo the process of becoming successful and jump to the end result. We’ve been programmed to believe that in our society, everything is done instantaneously: WE WANT IT NOW. We have to have our microwaves and direct deposit accounts, we even hate when it takes our computer too long to boot up — but the process is often more important than arriving.

The great guru pitch is that you can become a successful wholesaler NOW!!! I can say that you may close a deal or two fairly quickly, but this does not make you a “success.” With success comes sustainability, and anyone who is deemed successful had to go through the levels of student and master on each step along his/her path. I bring this to your attention because everyone believes that they can be an overnight sensation in real estate with a few clicks of a mouse and a few dollars spent on direct mail or pay per click advertising.

When I speak with some of the local wholesalers in my area, they often tell me about the failures and the small success before being recognized as a successful wholesaler. I would like to inform you on some of the areas you will need to be astute in and a master of in wholesaling to have any measurable level of success.

How to Purchase Real Estate With No (or Low) Money!

One of the biggest struggles that many new investors have is in coming up with the money to purchase their first real estate properties. Well, BiggerPockets can help with that too. The Book on Investing in Real Estate with No (and Low) Money Down can give you the tools you need to get started in real estate, even if you don’t have tons of cash lying around.

Click Here to Download

4 Major Areas of Real Estate Wholesaling to Master FIRST

1. Master Your Market

Starting out wholesaling, the most important step is to master your market. You need to know what sells, how long it takes to sell, and who the buyers are. Again, practice makes perfect. This is not the glamorous side of wholesaling, but it takes knowledge and skill in order to know what a deal looks like. Comparing properties is an exercise that must be perfected.

I recently met with a buyer on a wholesale deal, and we were discussing how wholesalers get two areas in structuring a deal wrong: they have a skewed knowledge of the after repair value (ARV) or they minimize the repair cost. Not knowing these two things can kill your credibility as a wholesaler fast in any market.

Related: The Ultimate Beginner’s Guide to Real Estate Wholesaling

2. Master Your Marketing

Direct mail is the most successful way in my opinion to source deals. Direct mail marketing is providing an opportunity to assist someone who may be in need. In order to be successful in this area, there are two options: you can hire a professional who has a successful track record or you can do it yourself.

I would suggest outsourcing this task, but again, you will need to have an idea of who you would like to mail to. This is done by sending mail to pre-foreclosure leads, expired/cancelled listings, absentee owners etc. In each market there are different ways to source this information, so you will need to know how to pull this data in your area.

3. Be a Master Negotiator

The best negotiators are those who can listen intently and understand what the other person’s needs are. It is good to learn negotiating from observing others. Many people fail in this area because they are only thinking of what is best for them in a negotiation, and they minimize the reasons of the other party. Win-Win solutions are an opportunity to provide a valuable experience for both parties.

While negotiating, I often repeat what is important to both sides. Although I may place more emphasis on what’s in our best interest, I never discredit what the seller or buyer wants. In negotiating you have to be willing to walk away if the negotiations are not going to produce a win-win.

4. Master Your Team

No one can stand alone wholesaling, especially just starting out. I often hear many newbies say, “I can’t find a mentor” or “How can I start building my team?” The first thing to do is to always be optimistic and remember you need to reciprocate some value to someone else. If you are not willing to swallow your pride and let go of your ego, you will not be able build a formidable team.

No matter what your credentials are, there will always be someone smarter than you, better than you, and more experienced than you. These are the people you need to continually be around and learn from. You have to be able to assist in building the team. You may not be the captain or the quarterback, but remember, you are a member, and on this team, you might have to start as a ball boy. Many groups are not teams; they are a collection of individual players that have different aspirations, but once you decide to help someone else build, then you will begin to build your team through genuine relationships.

Related: Introducing: The BiggerPockets Wholesaling Calculator (and Cash Buyer Reports!)

One of the main things I try and advise those starting out wholesaling is to remember: this is a business that is being created, and it does not happen overnight. The effort that is put into it is what you will get out of it. Closing 2 or 3 deals is good, but building a sustainable business is the start of generational wealth. There is one critical difference between being rich and wealth — those who are wealthy can lose everything and gain it back again because of their resources and relationships.

Master these 4 skills, and you will be on your way to building a sustainable wholesaling business. Although there is more to share, I believe these are critical.

Do you know of any other areas that need to be mastered in order to be a fruitful and successful wholesaler?

Please share your experiences!

About Author

Marcus Maloney

Marcus Maloney G+ is the Executive Officer of 3rd Generation Management & Holding LLC, which is a family owned and operated real estate investment firm. The firm's goal is to provide affordable solutions in real estate while providing exceptional opportunities for community redevelopment for the residents of Phoenix, Arizona. You can follow Marcus on Twitter


  1. David McDonald

    Hello Marcus, great post on wholesaling for beginner’s. And I agree that direct mail is the very best way to get leads. And If I may Marcus, I would like to add a 5th and very important thing here and that is, that in the beginning of your wholesaling business you need and have to have some sort of a marketing budget put in place even if it’s a small budget at first. I started out with just $100.00 a month for my Direct mail marketing and raised my budget after my first deal and after each deal there-on. Great post!

    David McDonald
    CEO / BlueHousePropertiesLlc

    • Awesome Article Marcus. Enjoyed reading. As a wholesaler, the way I attracted realtors into my circle was that I would give them leads that wanted cash offer for market value, people that didn’t want owner finance or lease purchase or give them list of houses that needed tenants. That way, they would find me pocket listing or run comps, access to the MLS.
      Another thing I learned in my journey as wholesaler is that leads that you think are dead can be structured or outsourced to another investor for a fee. Depending on the flexibility of the seller.
      Thank You.

    • Marcus Maloney


      You are absolutely correct, this is area where beginners believe they need to have a lot of money to get thing started. I was always taught to master the level you are on and you will begin to develop and grow from there. Great point!!!

      “Enjoying the Journey”

      • Kent Arrendell

        Ive taken the time to more than educate myself on investing in real estate. My focus is on wholesaling and flipping houses.
        I’m located in the DFW, Tx.
        What should I do first to launch my business? Send.out direct mailers? Attend a REIA meeting? I have a business phone line already…waiting to hear.

        • Marcus Maloney


          I would suggest you send your direct mail so you can get your lead funnel started. If you comfortable on the phone then start there, especially since you have your telephone # ready to go. Attending REIA meetings and networking can be done throughout the process. Hope this helps

          “Enjoying the Journey”

  2. Great article. I continue to be amazed at how many NEWBIES thing wholesaling is an easy place to start-with no money, no experience, no skills, no buyers. Get rich quick by wholesaling. The good thing about your article is you gently said, “This is not an overnight success plan.”

    • Marcus Maloney


      Thanks for reading. Wholesaling is hard place to start but with great tutelage, patience, and passion anyone can be successful if they possess these characteristics. I see so many “investors” come and go because: 1. Its not their passion and 2. They are only focused on money and not building relationships.

      “Enjoying the Journey”

  3. Mark Beno

    Thanks for the article, Marcus. I’m not afraid to say that I’m a brand new wholesaler, and will take it slow and steady at first. Your 4 steps are great reminders of what we need to master in order to succeed. Thanks again!

    • Marcus Maloney


      I incorporated morning meditation and prayer as the first thing I do in the morning it helps me gather my thoughts and gives me a purpose for the day.

      Absorb as much as you can but make sure you put theory (education) into practice (action).

      “Enjoying the Journey”

  4. Richard G. Hyatt

    Hello Marcus, I found your article very helpful on how to structure my wholesaling business in New York City. I have a marketing budget of $1,000.00 with backup money of $500.00, I want to use it wisely, I will be Launching my business next month in March. If there any wholesaler in NYC area that is willing share their experience I can be reached via email [email protected] Thank you Marcus and fellow wholesalers, good luck!


    • Marcus Maloney


      I wish you much success you should be starting your wholesaling endeavors now. Network, network, network will help you build your team and provide you with the opportunity to glean information from others in the RE Industry.

      “Enjoying the Journey”

  5. Chase Keller

    Great post Marcus. My favorite thing you said was “There is one critical difference between being rich and wealth — those who are wealthy can lose everything and gain it back again because of their resources and relationships.”
    I believe I could run up a good pile of income quickly by doing whatever it takes to make a buck, but there’s no way to make that last without putting in the effort to be a value to someone else. It may take longer for me to build up the wealth, but as Zig Ziglar used to say “you can have anything you want in life, as long as you help enough other people get what they want”
    Thanks again!

    • Marcus Maloney


      You definitely have the right outlook, currency is build on relationships. Currency is a repetitive action and only way for it to continue to repeat is having those relationships where what you give will eventually come back around to you.

      Continue on your journey. Much success to you

      “Enjoying the Journey”

  6. Terrell Sapp

    As a wholesaler this is on point !
    For sure something all wholesalers should know, your market, being an asset to your realtor (passing along leads that you cant wholesale on), networking/building your team, and budgeting. This is surely not an overnight gig.

    thank you for this honest post

    • Marcus Maloney


      Thanks for reading, many people go into this thinking that they will hit a home run on every deal, I like to give the unadulterated truth so people can build a business and not just fast money here and there.

      “Enjoying the Journey”

  7. Megan Carpenter

    This was a very helpful article in keeping the reality of the goal in the forefront of my mind. You have to learn to crawl before you can walk or run. It was also helpful reinforcing the fact that a few deals doesn’t make you successful.

    I live in CO and I am having a hard time finding a niche to market to and was wondering if anyone had any advice they wouldn’t mind sharing.

    • Marcus Maloney


      Thanks for reading first off;

      Finding a niche can be difficult but I found that its great to find an area right outside where there is a community with a lot of SFR that are rentals. I do this because it gives you some diversity once you get a property under contract. You can wholesale the property as a flip or you can wholesale it as a buy and hold. Target these areas and you will be able to work 2 groups of investors. Remember it does not have to be the worst area of the city. Happy Hunting

      “Enjoying the Journey”

  8. Geoffrey F.

    Excellent post Marcus.. I to have been dibbling and dabbling in the Wholesale world, and the advice given was very helpful. Knowing your targets, areas, comps and negotiating skills can make you a success.

    Any other wholesalers here in Charlotte NC that would like to bounce deals off each other please contact me.

    Thanks again,

    “Your friendly Wholesaler”
    [email protected]

  9. Thank You Marcus,
    Straight forward information is the hardest thing to find and easily the most valuable kind to pay attention to. This is the reminder that we nod our heads that we understand and do something crazy stupid anyway in the beginning. After that we read articles like yours 2 or 3 times and scroll back up the page to make sure we read it right.
    Thanks Again, Gary O

    • Marcus Maloney


      Straight forward is the only way to give it. I would hate to have someone waste time, and money trying to build something with misinformation. I’m glad you’re doing your research and learning before jumping out there. I have seen a lot of guys/gals sit through a 2 hour informational seminar and believe they have everything they need to be successful. You are building something and the most important aspect of building is ensuring you have a solid foundation.
      Much success to you!

      “Enjoying the Journey”

  10. Donald Placide

    Awesome post!! I’m a fairly new landlord and wholesaler in th NY/NJ area. So I’m trying to learn as much as I can to wholesale correctly out of the gate, but sometimes feels like drinking out of a fire hose lol. Articles like this helps to clear up some of my concerns!

  11. Gabe Garibay

    Hello, i am new to real estate and looking to get into wholesale. Im reading non stop and losing sleep over it lol. I also just joined 2 rei clubs. Alot of people say i shoud start marketing now before anything else. Do you agree with that? Should i start marketing before i do anything else?

Leave A Reply

Pair a profile with your post!

Create a Free Account


Log In Here