I often get asked the same simple questions about starting out in wholesaling. I am not talking about strategies that get you closer to doing deals; I am talking about the basic things needed to do a deal. There questions often confuse newbies because they are location specific and vary based on where you’re looking to wholesale.
With sites like BiggerPockets around, these questions really should not be a hold up to investing. I’ve already mentioned multiple times that if you are new, then BiggerPockets should be your study guide. You also have a chance to ask a questions on the new BiggerPockets podcast, #AskBP, as well. And you’ll get insight from BiggerPockets’ own Brandon Turner!
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.
Common Questions About Wholesaling
“How do I find an investor friendly title company/attorney?”
We have multiple ways to do this. People tell me all the time they’ve called different attorneys and were told they do not do assignments or double closing. To resolve this issue, BiggerPockets has a way for you to search for local investors in your area. I’ve used this a lot to build relationships with buyers in my area.
Anyway, you can find someone in your area and send them a colleague request simply asking them what attorney/title company they use to close their investor transactions. In the event that’s too easy for you, then you can always find your local real estate club and ask someone there.
Please keep in mind that the latter requires you to get up from behind the computer and actually take time out to do something productive to get you closer to your goals. These are just two simple ways you can find an investor friendly title company or attorney.
I live in NC, so this is an attorney state. We use an attorney to close our real estate transactions. In your state a title company might be fine. Also please keep in mind some of these attorneys do not have time to talk to a newbie about of preliminary stuff. I told a local new wholesaler what attorneys I closed deals with. The new wholesaler then called the attorney asking to look over his contract. The attorney responded with, “Just go get a deal first, then once it’s filled out, I will look over.” Please respect the attorney’s time if you are in an attorney state.
“Which Area Should I Market to?”
Another common question I get asked that is specific to an area is, “What part of town should I market to?” Again, you can use BP to find local investors and ask them, “What zip codes do you like?” And in return, if you find something, you can let them know first.
I’d say 7 out of 10 people won’t mind sharing this information. Some investors think they are helping their competition and won’t answer. Don’t worry about them; just move on. I am now doing better than many of the people who did not help me starting out. However, when they call me asking for help, I have no problem helping them because I don’t have a scarcity problem. I believe my giving gets me further than others. And of course you can go to a real estate meeting and ask who is doing deals, then proceed to ask that person the same question.
Now, I do tell newbies to focus on your majority landlord areas. It seems that deals come out of those areas more quickly because the wrong tenant could make you want to fire sale your whole portfolio, especially if you are landlording as a hobby and not a business. I have a property now in a low income area I am willing to take a loss on just to walk away with my sanity. Things happen; you just get better with time.
In conclusion, the answers to most common newbie questions can be found on BiggerPockets or by going to your local real estate club meeting. However, BiggerPockets makes a lot of things very convenient. You just have to take time out to learn how to use it. It’s a great tool once leveraged correctly.
Also, taking investors to lunch can be constructive, but have a series of questions to ask and be willing to take action. People have helped me succeed on this journey, and they’ve all said they wanted to help me because they see me actually doing. In return, I try to help others, but I love helping fellow doers — not people who are asking me the same thing they asked me back in 2013.
Real estate newbies: Have any questions about executing a deal you’ve been unable to get answered?
Leave a comment below!