Real Estate Broker · Ocala, FL · Member since 2015 · 9 posts · 4 votes
Getting into real estate with low access to capital, I've read that there's 2 primary options: bird-dogging and wholesaling.
Essentially, a bird dog points an investor towards a deal. They have low skin in the game and it doesn't cost much to send a lead. Often times these leads are what investors call "Phantom Points," meaning the dog points at a bush with no birds in it. As I see it, this is one of the more common mistakes from bird dogs.
But what about wholesalers? What are there common mistakes starting out? What advice would you experienced wholesalers give yourselves starting out? What do your biggest mistakes early on and how can I learn from your experience?
Investor · Houston, TX · Member since 2014 · 242 posts · 81 votes
10y
Not building a rapport with the seller is a huge mistake! Wholesalers get to excited to talk money before hearing what the seller's story is. Treat them like your grandma or a ww2 vet who is telling you the story of how they stormed Normandy.
Investor · Houston, TX · Member since 2014 · 242 posts · 81 votes
10y
Finding bad deals gives us a bad name. Don't over mark up your deals and make sure your numbers are right or conservative in the favor of your buyers. Making a killing on 1 deal in a shady way is not as good as making a good fee on a good deal and being known as someone who provides good deals.
Investor · Houston, TX · Member since 2014 · 242 posts · 81 votes
10y
Not building a rapport with the seller is a huge mistake! Wholesalers get to excited to talk money before hearing what the seller's story is. Treat them like your grandma or a ww2 vet who is telling you the story of how they stormed Normandy.
Investor · Fair Lawn, NJ · Member since 2014 · 384 posts · 189 votes
10y
I'm not a wholesaler but what I've found marks the starting wholesaler is a lack of appreciation for the sophistication needed to put together a successful deal. What @Tim Shinsays is super important. Learning to estimate the kind of rehab needed and pricing it along with developing an ability to asses a realistic ARV are what is going to prove to potential buyers that you are bringing value to the table. Building relationships with a limited number of buyers where they learn to trust your analysis is what is going to lead to success.
I'm not a wholesaler but what I've found marks the starting wholesaler is a lack of appreciation for the sophistication needed to put together a successful deal. What @Tim Shinsays is super important. Learning to estimate the kind of rehab needed and pricing it along with developing an ability to asses a realistic ARV are what is going to prove to potential buyers that you are bringing value to the table. Building relationships with a limited number of buyers where they learn to trust your analysis is what is going to lead to success.
Right! Get the book on Estimating rehab costs and the book on flipping houses both by J Scott and learn to properly estimate or slightly over estimate repair costs. And if you can't figure it out, bring a seasoned rehabber with you and split the wholesale fee! Don't be greedy.