Wholesaling. Might be harder than I thought.

[Greg Odom]

From what I have been reading a lot of newbies gravitate towards Wholesaling.  I am certainly a newbie real estate investor.  The whole reason I am here is because a read an ebook on wholesaling that i got free access to on my local library's webpage.   After reading different things on here and the webinar on Thursday night about wholesaling, I think it might actually be harder than a lot of newbies might think.  And certainly harder than the "gurus" tell you it is.

That being said, harder doesn't mean impossible.  It just means you might need to spend more time learning, networking, building capital, etc.  At least that's the vibe I have been getting from most of what I have read here on the BP forums.

So will I still gravitate towards wholesaling?  Honestly, I don't know.  I don't think I have enough information just yet to choose which niche in real estate investing would fit me best in the market that I am in.  I think am way to new to say that I am definitely going to be a wholesaler, or a flipper, or a buy and holder.

My first goal is to really just start making friends with people in the real estate world.  Hang out with them, learn from them.  Maybe I even get to go walk some houses or something.

I'm finding out that this is definitely a marathon not a sprint.  So I'm not quitting my day job (unless somebody wants to pay my bills for me...lol).  I'm not going to spend a ton of money on TV infomercial "guru" crap.  I'm going to just take it step by step and day by day.  I'm going to be diligent in learning and meeting people that are successful.  

So I think from one newbie to other newbies out there.  Concentrate on learning and networking (aka meeting people).  The rest...the deals, the money, and the success will follow.  

*If I'm completely off base somebody please correct me...lol

**What are YOUR two most important things a newbie should do when they are just starting out?

-Greg Odom

[Karl Krentzel]

Originally posted by @Greg Odom:

From what I have been reading a lot of newbies gravitate towards Wholesaling.  I am certainly a newbie real estate investor.  The whole reason I am here is because a read an ebook on wholesaling that i got free access to on my local library's webpage.   After reading different things on here and the webinar on Thursday night about wholesaling, I think it might actually be harder than a lot of newbies might think.  And certainly harder than the "gurus" tell you it is.....*If I'm completely off base somebody please correct me...lol

**What are YOUR two most important things a newbie should do when they are just starting out?

-Greg Odom

Hey Greg! 

You know, that is a great observation... here's what I tell myself when I think about stuff like that.

"If it were easy, everyone would do it, and there would be no money in it."

The truth is, while a lot of "newbies" gravitate towards Wholesaling because it is the easiest way to get involved in Real Estate investing; they are seldom taught the sales skills necessary to know what to do.

At the end of the day, this is a sales business.  To answer your question as succinctly as possible, my two suggestions that are the most important things a newbie should do are these.

1.  Learn Sales Skills.  

Without learning the "Five Core Competencies" (Lead Generation, Lead Followup, Prequalification, and Closing Skills), you are already at a disadvantage.  Most "guru's" teach Marketing.  Not Sales.  

When you are new, you are not as confident as you could be.  Fear causes you to "not do" the things that you know will get you business.  For example, calling For Sale By Owners, For Rent By Owners, Expired Listings, Cancelled Listings, Door knocking Notice of Defaults, etc.  is virtually impossible for the newer practitioner (aka. "newbie").  

Why?  Not because he is scared, it's because you don't know what to say! 

When you learn what to say, the fear goes away.  

So for a newer practitioner, I would say it is critical that you learn sales skills.

2.  Take Action!

One of the very best things about wholesaling is that it is virtually impossible to screw up if you understand a few basics.  You have an inspection period, and if it isn't what you want it to be, cancel! 

You will never get paid reading a book.  The only thing that has any value is a signed contract.  Therefore, devote 75% of your available time to completing the 5 Core Competencies and take action!

*** Additionally, the best Rehabbers, and Landlords I know are also great wholesalers.... it's not a "beginning step".  It is just another niche... Get awesome at finding a great deal in your town and you will never be without a friend in need.

Some basic thoughts about wholesaling for the new...

a.  The Seller's Motivation must be at the highest level possible.  A useful question to use to determine their motivation is "What happens if it doesn't sell?"

b.  The closer you act like a real buyer does, and less like an investor, you will get more deals done.  Avoid the trap of "push button" wholesaling.

c.  Price fixes everything.

d.  Those who control the Inventory, control the market.

e.  If you get a property under contract, the buyers will follow.

f.  If you aren't getting any action on your property for sale, the price is too high.

g. No matter what, fail forward faster! 

Hope that helps, and sorry for the long post!

Have a Powerful Sales Day!