How To Start Wholesaling

[Andrew Khiev]

19 years old. Looking on your guys thoughts on the Clever Investor. Im interested in entry level real estate investing. His program on wholesaling looks somewhat promising. Want to close my first wholesale deal this year! Where do I start??

[John Hixon]

@Andrew Khiev Welcome to BP.  I would stay away from any programs.  Wholesaling or assigning really is not difficult.  Find a property for $50,000 that once it is fixed up is worth $100,000 sell it to an investor for $60,000.  The investor gets the house you get $10,000. That is a basic summary but pretty much how it works.  

Just read on BP about it and you will learn plenty. But do not be like so many wholesalers out there.  If you cannot actually close on the property then you do not need to be in this business.  Hate to bust your bubble but there are too many wanna be wholesalers out there with no money just screwing over home owners.  They think their house is sold then come to find out the wholesaler cannot afford it and walks and they are left sitting there.  

Every house I put a contract on I put $3,000 earnest money and I have the ability to close on it if my buyer walks.  People think that this is somehow different from all other types of business, that you do not need money to do this.  Well, you could not be more mistaken.  This business requires a lot of money.   I spend about $1,600 a month on marketing and that number is getting ready to go way up. 

Probably not the answer you wanted but I just see so many people get on here and think that wholesaling is their ticket to fame and fortune.  I also deal with those same fools in real life when I have to fix the issues they caused because they wasted a sellers time with thinking their house was sold then 20 or 30 days later the wholesaler backs out and the seller is screwed.