what options do i have as a beginner?

Question

*no cash & bad credit*

i read a little about bird dogging. wholesaling has really intrigued me that i have purchased a course. what other investing areas could i venture in safely?

Ken Spohn · Answer

1. Become a bird dog for a seasoned wholesaler. This will teach you how evaluate properties, learn the neighborhoods that are selling and you don't have to risk any of you own money. In case your not familiar with the term "Bird Dog" It's simply finding properties for a investors and let them handle the contract negotiations and putting up the deposit to secure the property. He will then pay you a set fee when the property closes. (While in most states this is legal please seek legal advise) DO NOT ask for a up front fee! This will show desperation and possibly ruin the relationship.

2. Partner Up With an Experienced Wholesaler.  Like any business transaction he will want to know what your bringing to the table. If your just getting started this is probably not a good option because it will only frustrate you. You must have some experience or things just won't work out. You may even quit before you close a deal. My suggestion is start off as a bird dog and learn the ropes. Wholesale deals have been around since the beginning of Real Estate and they will still be there next week. Take your time and you will make plenty of money.

3. Find a good Realtor. All Realtors are not created equal. Most Realtors have a specialty. Some specialize in Luxury homes, some the buyers side, some the sellers side...ect. The one you want that specializes in Foreclosures and Bank owned properties. Why? They can help you when analyzing the property, give you comps and give you an idea what the bank mite take. Notice I said "mite"! If they are the listing agent for the bank they do have an obligation to the bank as a  seller's representative.

Jon Holdman · Answer

Really?  I see lots of wannabe wholesalers come and go and forward either zero or one possible property.  I know of one wholesaler who actually seems to move properties, and I can't tell how many properties he actually moves.  I do look at his weekly e-mail and the listings on his web site, and from that it would appear he moves one or two listings per week.  Most net him about $4000.  He openly states his cut.  OTOH, I've seen listings linger for weeks and I've also seen listings appera, then disappear from his list without being sold.

1.5 listings a week x $4000 a listing x 52 weeks is a little over $300K.  That's a nice payday, but not a million a year.  As far as I can tell, and I get a LOT of wholesaler mailings, he's one of the most successful in Denver.  So, where's the evidence "many" investors make a million a year wholesaling?

Drenda Holmes · Answer

If you have more time than money , Wholesaling is the way to go. All your really doing is flipping paper. I really didnt believe it until I had done 2 deals and now I am more motivated than every. This is a great place to be ...I love it here. I have found out some much here at bigger pockets than any place eles.

Everywhere else you go someone wants to always sell you something but the people here are giving you vital information with nothing in return. Thank you so much for starting bigger pockets. It is a GOD send. Sam I suggest you ask as many questions as possible and you will get a reply.

Nick J. · Answer

Drenda, I love your name, it's unique.

Sam T, also consider the search function here on BP, I'm sure a lot of your questions may have already been answered. I'd spend a few days to a week or so thinking of questions and writing them down and searching for them. As you go you'll come up with more questions.

This way once you've got a grasp, you can ask more specific questions and get more helpful answers

Joe M. · Answer

That kind of common sense thinking will get you in trouble :D

I guess you didn't know that you could make millions with no money down, a 420 credit score and little to no knowledge of what you're doing........
 
Seriously though, the best investment you can make right now is in your real estate education.  Fortunately here on BP you can learn a tremendous amount about the business without shelling out hard cash to some two bit hustler.

I only started active investing in real estate this year, but I spent the previous 5 educating myself and building up funds to be able to pull the trigger.

Terry Drake · Answer

Birddog/referrals and wholesale/quick turns would be the best way to get your foot in the door with no credit and little money.

You can always take on more later.

Brian P. · Answer

K.C.

Bird Dogging is covered by the licensing laws of several states. I don't know about yours but a good rule to start with is not to use the title real estate consultant unless you are licensed. Stick with the generic investor nameplate.

Even though I used bird dogs I would never suggest you become one. Start off as a wholesaler from day one. I hate to type so I won't give the 20 reasons why.

The million a year wholesaling, never seen it done. I have done the million but it required adding some rehab and end buyer deals I cherry picked while wholesaling, and also I was doing business where the average home was a million dollars plus so walking away from escrow with a $200k check was not a stretch. Plus being a broker didn't hurt either.

Learn to talk to the sellers, at the least spend a buck or two on an option. dig into the archives on bird-doging, options, etc. but don't become one. become a principle in the deal on some basis.

Brian

Jeffrey K. · Answer

You should get a job, save your money, and work on your credit.  Read a lot on BP and in books.  In a year or two you will have a plan and have to tools to get it done.

Account Closed · Answer

So this may be a stupid question - do you have to have a RE license to "bird dog"?

Being new to BP - have there been threads in the past dedicated to "bird-dogging"?

Thanks!

Bryan Balk · Answer

It is possible to make a million wholesaling even though these people don't believe it.  We came close about 2 years ago.  Then moved to flipping where the money is a little better.  But back to wholesaling, if you want to make that kind of money you will have to work 80 hours a week and have a great team.  We had rehabbers, leasing agents, banks, hard money lenders all in place for our customers to use for our product.  We went out for drinks dinner almost every night with a new potential investor that may buy our product. We didn't go out and find established investors to purchase our great rentals we built them.  This took a lot a lot of servicing, phone calls, emails, dinners, drinks. But It can be done investing in Real Estate is really an easy sell.  Just don't hold yourself back to only selling to current investors.  Talk about the advantages of buying real estate to everyone you know NETWORK.  This is a common mistake wholesalers make.  They only sell to current investors when you can take your neighbor and make him and investor.

what options do i have as a beginner?

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