How to Start Wholesaling

Question

Hello everyone. I am new to BP and new to the idea of wholesaling real estate. I would like to know more about the basic start up things to do as well as resources in the Central Florida area to learn more. I am also looking to work with a mentor maybe during the week after work or on weekends outside of my Home Staging business. Any advice, tips, or beginners information would be great. I would love to expand in the Real Estate industry outside of my company! Any and all tips would be greatly appreciated!!

Thank you all in advance

Brett Snodgrass · Answer

Hi @Sabrina Hill , Have you read The Ultimate Beginner's Guide to Wholesaling? It details the in and outs. There was also a blog written about it this week by a very wise investor;) that's a quicker read (it's here). As far as the mentoring goes...1. Set up a keyword alert for your specific area.2. I'd then create a post on BiggerPockets saying where you are from and that you're looking for advice on how to find an ethical mentor in your area. ^This will help promote you with other people who have keywords set up for your area. (I know that your post is similar, but this is why you post it) 3. Then I'd be on the lookout for established wholesalers and investors in your area that pop up from your keywords.4. Once you find a few that look interesting, take them out to coffee. Make sure you interview them and get a feel for them. (working with them is a mutual agreement)5. If you like them, and they seem like a good fit, then ask if you were to find some deals, if you could bring the deals to them for them to buy and then offer a 60/40 split (they get 60%) if they'll agree to walk you through the process of closing on it/selling it. And state that you'd obviously do a lot of the leg work, you'd just need to be shown what to do.6. Then offer, if they have any other needs in their business, that you're really hungry to get involved and to learn the business, so if they needed help answering phones, general help or maybe even working out something with your staging skills, that you'd love an opportunity to work with them and help out.7. Then actually do it, if they offer you something.8. Begin looking for deals via free resources, (here's a good guide to get you in the right direction: https://www.biggerpockets.com/renewsblog/2014/04/23/acquisitiondomination/). Also consider driving for dollars, posting signs at coffee shops, etc.9. Learn how to run comps and analyze deals the best you can (search on the BP blog for 65% rule for wholesalers) and then when you think one might be a good deal, bring it to the investor who has agreed to purchase the property, and ask him to confirm your comps and give you feedback.10. Then if he likes it, boom: you now have a real estate mentor and you just rinse and repeat moving forward.

Account Closed · Answer

My advice to new investors is to start wholesaling properties. First pick a neighborhood that you are either in or close to. Driver around all the streets and look for vacant houses. There should be some. Then look in the county assessors website to find the owners. it should give their name and mailing address. Send them a letter telling them you found their house to be apparently vacant. But if it is obviously abandoned, say so in the letter. Tell them you will pay them cash for a quick close. When you do all that, then contact a local RE Agent to give you a list of all the houses in that neighborhood that have sold in the last 5 years with all cash. This typically is investors. Then again go to the assessors website and find their name and mailing address.Once you get a response from the seller of the vacant house, negotiate a deal to buy it for all cash. Then immediately contact all the cash buyers you just found that buy properties in that neighborhood and tell them about the house and would they be interested in buying it. Once you have done all that with that neighborhood, go to the next one and 'rinse and repeat.'I hope this helps.Steve Anderson

Sabrina Hill · Answer

Thanks so much everyone for all your helpful input. Very interesting points. I've taken the Florida Real Estate exam once and fell two point short. I am arranging to take it again!

Account Closed · Answer

When you find a vacant house, remember we are in Florida. What this means is the might not be abandoned, but owned by northerners. This will be their winter home. Once you figure this out you will send a different letter than the ones that are obviously abandoned.

Account Closed · Answer

I am getting an average of 8% calls on my 1 letter or email.

Brett Snodgrass · Answer

@Tim Johnson sounds good.

Tim Johnson · Answer

@Brett Snodgrass, wow way to stay commited. This month I will send out 500 due to my budget and hoping to double and triple that next month.I will keep you posted on my numbers!Thanks

Sabrina Hill · Answer

@Brett Snodgrass I most definitely will keep you posted and contact you if i have questions. Thanks

Brett Snodgrass · Answer

@Sabrina Hill , happy to do it and that you're finding what you need on BP. Yes wholesaling and other strategies take work, but they're doable and the more you do the more you can implement systems that make it simpler and more efficient. Looking forward to hearing about your successes. Don't be afraid to let me know if you have any other wholesaling questions along the way. @Tim Johnson thanks. How many letters are you sending out? I average around one deal for every 1000. Curious to know what you'll find in Ohio compared to Indiania.

Sabrina Hill · Answer

@Stephen AndersonThis most definitely helps a great deal. I found 2 homes actually today that look to be vacant over by Disney in a very nice area. I wanted to make a U-Turn to get the address to do some research but I was in a hurry to get somewhere. I am actually going by there tomorrow. I am going to take all your advice to see what can happen with these properties. I actually know a realtor who may help me with that information as well. I am so excited and thoroughly thankful for your input! I will keep you posted on what happens! :)