Brand New Wholesaler!

[Kaitlyn Robinson]

Hello all! I wanted to go ahead and introduce myself here in the forums. I'm a beginner investor hoping to start in wholesaling with plans to expand from there if things go well. I've organized and jotted down my short-term and long-term goals which I'm sure will change as my journey goes and my motivations change. Honestly, I hope to break into the luxury real estate biz haha! Go big or go home, right?

Anyway, I'm very enthusiastic and very determined to work this out one way or another, and hoping to get some good advice and even better relationships along the way. 

Now, I'm off to analyze my market! Wish me luck 

[Patrick Kaiser]

I work with wholesalers. Unlike the videos which tell you how easy it is and how you'll become a millionaire (those people are just trying to sell you their programs) most people fail at wholesaling. I've seen 3 back out in the last month. Just for background, I'm an agent, not a wholesaler, but they get recommended to me a lot for some reason. 

My opinion on why most fail, and how, to succeed, is to keep it simple. 

#1) Find a house and put it under contract for less than it's retail value. Part of this is being extremely good at valuing properties. You might spend some time researching what houses in your area sell for, and more specifically, what the houses that sell to corporations sell for, in cash. 

#2) Once you know what the house is able to be sold for to a corporation in cash, approach all the corporations in the area and tell them you have a house to sell them at X price. 

#3) Sell the contract. 

That's it. I talk to a lot of new wholesalers and they ask me questions like "Whats the market value of this house you've listed and/or have for sale?" I have people ask me probably every week "What does the seller want for the property?" Well, I get why they ask, but I tell them the same thing every time "Seller wants a million bucks, make me an offer and if its the highest offer, we'll take it." So you need to be prepared to know the market values of houses, make offers, and know the you can sell that contract to whoever the end user is, flipper, long term rental, or AirBNB, thats pretty much it.

So you need to get good at those things. The successful wholesalers I work with can pull comps and have an offer ready in 15 minutes. When you're approaching sellers, it "I can buy your house for this amount of money." In whatever avenue you're finding them it doesn't matter. You need to know how much you'll pay for a house and how much you can sell it for. Quickly. And IMO that's the primary reason most new people fail. There's obviously to it that that, but if you can make offers and get them under contract, at a good price, there are always buyers available.