Is It Really That Easy To Become A Wholesale Investor?
Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
Curt Davis - KAIZEN Realty538 Reviews
Is It Really That Easy To Become A Wholesale Investor?
Most Popular Reply
Wholesaler · Amarillo, TX · Member since 2008 · 1k+ posts · 659 votes
16yNC Mark, you just met several "real" wholesalers.
Yes, wholesaling attracts the idiots like flies to a bug zapper, but that's because it does require the least knowledge and the least capital investment to be successful.
To be a successful landlord you will need to know lease laws, tenant rights, and property management inside and out. That's on top of having skills in finding deals, deal analysis, negotiations, contract law, financing options, networking, marketing, and accounting. And on top of normally needing excellent credit and a large amount of capital.
To be a successful rehabber you will need to have a strong grasp on contractor management and/or remodeling in general. That's on top of having skills in finding deals, deal analysis, negotiations, contract law, financing options, networking, marketing, and accounting. And on top of normally needing excellent credit and a large amount of capital.
To be a successful wholesaler you will need to have skills in finding deals, deal analysis, negotiations, contract law, marketing, and accounting, just like landlords and rehabbers, but you will NOT need to know lease laws, tenant rights, or property management like the landlords and you will NOT need to understand contractor management or much about remodeling in general like the rehabbers. And you will NOT need any credit or much capital. That along with doing it all with little or no financial risk or liability.
The thing is that wholesaling IS the easiest aspect to learn in this business, and it is IMO an excellent way to start off in the business. It allows a new investor to get acquainted with and learn the business and build their network with little or no risk. All the while making or at least trying to make money at it.
Do the village idiots flock to wholesaling? Yes, but that's because of what wholesaling honestly offers. A way to learn the ropes and make money in this business with little or no risk and little or no capital investment.
Does successfully wholesaling require hard work, diligence, and commitment? ABSOLUTELY!!!!!!!! Success in ANY business will require these things, and wholesaling is no different.
56 Replies
- Real Estate Investor · Las Vegas, NV · Member since 2008 · 1k+ posts · 447 votes16y
Curt, are you serious? Of course it’s easy! Just go to any guru seminar and they’ll tell you how you can make zillions without using any money of your own. You don’t need any hard work or knowledge either. Just sit back drinking your PBR while eating potato chips and watching your peers acting like idiots on Jerry Springer (maybe you can get on that show someday).
There is one thing you do need – the $5,000, 8 CD set that will tell you all the secrets that big investors don’t want you to know. If you buy right now this set can be yours for only $1995. But wait – there’s more! Just use your credit card to order immediately and they’ll throw in a bunch of useless contracts to get started.
How could it possibly be any easier than that?
:cool:
- Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes16y
Richard,
OMG!!! You are so right. I forgot about the late night courses that all armchair investors can get. How can I buy that course right away!!
Thanks!! I needed your post, it made my day.
Curt Davis - KAIZEN Realty538 Reviews - Real Estate Investor · NE · Member since 2009 · 7 posts · 0 votes16y
I agree with you two about the ridiculousness of the guru wholesaling marketing technique.
On the other hand, it sounds like you two might be wholesalers. If you assume you are talking to a serious person who wants to get into real estate but doesn't have any expertise - would you recommend wholesaling as a good entry strategy? If not, what would you recommend?
- Real Estate Investor · Las Vegas, NV · Member since 2008 · 1k+ posts · 447 votes16y
Originally posted by Ross Pesek:
On the other hand, it sounds like you two might be wholesalers.
I am not a wholesaler. Being a wholesaler involves real work but the gurus make it sound easy. They appeal to those who are looking for some magical way to make money in real estate when they have no cash and no credit. The guru gets them to buy some program that will reveal the secret.Truth is that there is no secret. It takes time and effort - aka work. You still need money but not as much as you would to buy properties yourself. You need money for basic business expenses, and contract deposits.
At every real estate club meeting I have people come up to me who are “going into wholesaling†and want to add me to their buyer’s list. Those people rarely come back for a second meeting since they are gone from the business in short order.
That being said, wholesaling CAN be a good way to break into the business if you don’t have some weird fantasy about it being an easy way to go. You need to learn the business. Most of your time needs to be spent building a large buyers list and finding out what those buyers want. Too many people do it backwards – they spend their time looking for properties. They find something they think is a screaming deal (they’re usually wrong) and then desperately search for a buyer.
Soak up the information on the forum and be prepared to work. Attend your local club meetings and make as many connections as you can.
Good luck!
:cool:
- Real Estate Investor · OH · Member since 2008 · 4k+ posts · 1k+ votes16y
NOTHING IS EASY IN BUSINESS - ANY BUSINESS!
I think we can assume that anyone that wants to add you to their buyer's list is a WANNABE!!! It's just mindless guru speak!
- Real Estate Investor · Atlanta, GA · Member since 2009 · 339 posts · 126 votes16y
Because I am considering the wholesaling field myself I also wondered about this.
I can understand why it is attractive to begginers since it does not require the financing or even actual purchase of a property in some cases.
But like I have learned in the last two years finding the deal is hard work. For wholesaling the challenge is both finding the deal and then finding the buyer in a limited amount of time.
The gurus need to sell, period. Unfortunately there are some gurus out there that actually provide good material and some that sell junk. But these two have gotten mixed and they are hard to tell apart.
- Real Estate Investor · Baltimore, MD · Member since 2009 · 42 posts · 4 votes16y
I'm a newbie investor and have decided to start off wholesaling. I dont think i'm going to make $50,000 in 30 days nor do i think its easy. I feel wholesaling is a way for me to learn more about REI and make a little money while learning.I see wholesaling as a stepping stone to other aspects of REI. I'm not just looking at the advice from gurus but many here on BP and other investors i've come in contact with over the last few months.
- Real Estate Investor · Charlotte, NC · Member since 2008 · 368 posts · 42 votes16y
Curt, Mike and Richard as you have notice the recent trend. I have noticed that tons of people who come on hear say that they are going to start out wholesaling. How is this possible? I have been an INVESTOR for 8 yrs own more than 25 properties and still am wondering how can someone who either lost their job or never had a interest in this can come in and start making money. Everyone is trying to become a wholesaler, but you do not hear any of them saying that they want to start out becoming a landlord. This is a MAJOR problem because until you purchase a few you will never know the real ins and outs of this business. Borrow or use 401k, but purchase and then you can start receiving cash.
The funny thing to me is I wonder how many of these NEWBIES have spent money with the tape and book sellers. You are how they are able to purchase properties now. DON'T YOU GET IT. Buy from me and find others to help you figure out the rest.
Believe it or not I see this PHENOMENOM getting worse as the MARKET gets worse. That means we are going to have INEXPERIENCED people trying to do what it took years to perfect. Well I wish you all well, but anything worth having does not happen over night.
SUCCESS BREEDS SUCCESS
- Real Estate Investor · Las Vegas, NV · Member since 2008 · 1k+ posts · 447 votes16y
Originally posted by Tamarra Banks:
I'm a newbie investor and have decided to start off wholesaling. I dont think i'm going to make $50,000 in 30 days nor do i think its easy. I feel wholesaling is a way for me to learn more about REI and make a little money while learning.I see wholesaling as a stepping stone to other aspects of REI. I'm not just looking at the advice from gurus but many here on BP and other investors i've come in contact with over the last few months.
That is absolutely the right attitude. Good luck to you.:cool:
- Real Estate Investor · Baltimore, MD · Member since 2009 · 42 posts · 4 votes16y
For those who have responded in this thread, If wholesaling is not the right first step, then what is?
I work full time, so investing would be a part time thing for me now.I have good credit, plan to be debt free in jan 2010 by payin off last cc and have about $8500 in savings.I value the opinion of others and just want to know what you would suggest to someone like me who now has an interest in REI. - Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes16y
Tamarra,
Keep in mind that whatever is said that you can do whatever you want. Some of us feel that people might want to consider actually buying investment property first so you can go through the process yourself. This will help build credibility with your potential buyers.
Besides, if being a wholesale investor is what you want to do then owning some property will be a great experience for you both personally and professionally.
Curt Davis - KAIZEN Realty538 Reviews - Real Estate Investor · Baltimore, MD · Member since 2009 · 42 posts · 4 votes16y
Originally posted by Curt Davis:
Tamarra,
Keep in mind that whatever is said that you can do whatever you want. Some of us feel that people might want to consider actually buying investment property first so you can go through the process yourself. This will help build credibility with your potential buyers.
Besides, if being a wholesale investor is what you want to do then owning some property will be a great experience for you both personally and professionally.My ultimate and preferred goal is to have several rental properties where the monthly cashflow will allow me to pay all my bills and still have surplus.I see acquiring properties as the end and not the beginning because I feel i need to build a bigger cash reserve.
- Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes16y
Tamarra,
Though you do have a good point, in todays market with prices so low you should move on something sooner than later.
You can get a short term private loan to cover the whole transaction if you find a good enough deal.
You should jump in and dont look back, you will be hooked once you start buying.
Curt Davis - KAIZEN Realty538 Reviews - Real Estate Investor · Charlotte, NC · Member since 2008 · 368 posts · 42 votes16y
Hello Tamarra
You seem to have a real understanding, but in todays market that does not cut it. You have to be able to show me something. You are selling me a home and when I ask you the question do you own any yourself and you tell me NO, I will definitely take that into consideration. When I first started had little money and GREAT CREDIT, now I have PLENTY OF HOMES and REALLY GOOD CREDIT. It was something that I wanted to do and I am fulfilling my dream. Never even thought to wholesale properties, it just happened because I was making so many contacts in my everday dealings.
Please send me your contact info and I am going to send you a lead in your area. See just that fast things can start to happen.
SUCCESS BREEDS SUCCESS
- Attorney · Raleigh, NC · Member since 2008 · 4k+ posts · 1k+ votes16y
It's easy to "be" a wholesaler.
Making money at it is a different matter.
- Real Estate Investor · North Carolina · Member since 2008 · 1k+ posts · 483 votes16y
I would LOVE to meet a real wholesaler! Please bring me deals! But they better be better than the deals I find myself.
So far, this is the kind of crap I hear from wannabe wholesalers:
"This is selling at tax value!" SO WHAT?
"Just throw some college kids in it!" HUH?
"Your rent will cover the mortgage!" OOOOH!
"All it needs is a new floor, new walls, new ceiling, new foundation and maybe a new roof." GEE THANKS.
"This hasn't hit the MLS yet!" WOW.
"The bank is dying to get rid of this." YEAH, 'CAUSE IT'S GETTING CONDEMNED!And so on..............
- OR · Member since 2008 · 1k+ posts · 845 votes16y
Easy? There is nothing mysterious about it. It doesn't take specialized skills or expensive education. There are no deep secrets; it's all out in the open, just read this site.
It takes an investment of time and effort, and you must be able to think and use some basic math. It requires at least basic human relation skills.
Easy? Some people can not make themselves take risks, or move out of their comfort zone, or make themselves complete a project. For them it wouldn't be easy.
But there are almost no barriers to entry, so it's easy to get into. You must slog along and put in all the hours of work and research, but none of that is mysteriously complicated. It only involves time (which everybody has) and effort (which anybody can do)
- Wholesaler · Amarillo, TX · Member since 2008 · 1k+ posts · 659 votes16y
NC Mark, you just met several "real" wholesalers.
Yes, wholesaling attracts the idiots like flies to a bug zapper, but that's because it does require the least knowledge and the least capital investment to be successful.
To be a successful landlord you will need to know lease laws, tenant rights, and property management inside and out. That's on top of having skills in finding deals, deal analysis, negotiations, contract law, financing options, networking, marketing, and accounting. And on top of normally needing excellent credit and a large amount of capital.
To be a successful rehabber you will need to have a strong grasp on contractor management and/or remodeling in general. That's on top of having skills in finding deals, deal analysis, negotiations, contract law, financing options, networking, marketing, and accounting. And on top of normally needing excellent credit and a large amount of capital.
To be a successful wholesaler you will need to have skills in finding deals, deal analysis, negotiations, contract law, marketing, and accounting, just like landlords and rehabbers, but you will NOT need to know lease laws, tenant rights, or property management like the landlords and you will NOT need to understand contractor management or much about remodeling in general like the rehabbers. And you will NOT need any credit or much capital. That along with doing it all with little or no financial risk or liability.
The thing is that wholesaling IS the easiest aspect to learn in this business, and it is IMO an excellent way to start off in the business. It allows a new investor to get acquainted with and learn the business and build their network with little or no risk. All the while making or at least trying to make money at it.
Do the village idiots flock to wholesaling? Yes, but that's because of what wholesaling honestly offers. A way to learn the ropes and make money in this business with little or no risk and little or no capital investment.
Does successfully wholesaling require hard work, diligence, and commitment? ABSOLUTELY!!!!!!!! Success in ANY business will require these things, and wholesaling is no different. - Real Estate Investor · North Carolina · Member since 2008 · 1k+ posts · 483 votes16y
Ryan: meeting 'real wholesalers' who are no good to me is no good to me.
As I have said before: there are succesful flippers out there, but none here (beyond maybe a deal a year). There are succesful 3% deals out there, but none here. And, of course, there are succesful wholesalers out there, but nary a succesful one near me.
Beyond being (obviously) local, REI can be a very specialized art dependent on a multitude of local factors that aren't necessarily replicated along geographical lines.
Not every REI opportunity exists everywhere, which is why many here are mobile in their REI pursuits.
And if any 'real wholesalers' want to 'mobilize' their selves on over near me I will pay you genuinely good money for genuinely good deals.
- Real Estate Investor · GA · Member since 2009 · 43 posts · 22 votes16y
I like those newbie wholesalers who have never owned a property, yet refer to themselves as "Investors".
In my opinion, you're not an investor until you have actually invested. - Real Estate Investor · GA · Member since 2009 · 43 posts · 22 votes16y
LOL @ Mark
I also like the ones on FB who call themselves Investor/Wholesaler/Short Sale Specialist/Internet Marketer/Social Media Expert/Blogger and who make about ten Youtube guru videos a week for about a month, before they disappear forever.
- Wholesaler · Amarillo, TX · Member since 2008 · 1k+ posts · 659 votes16y
Mark, my point in referencing your meeting of "real" wholesalers was that you made it sound like they don't really exist. Like a "real" wholesaler who offers "real" deals only exists in some fantasy world propagated by gurus. I sensed some bitterness and disillusionment there, so I felt the need to point out their reality.
And there may not be any wholesalers in your area but I seriously doubt that means there is no opportunity for wholesaling or most other investment strategies there. Not sure if you meant 2% rental deals in your comment instead of 3%. 3% are really hard to find but they do exist. Probably not in your market, though. It doesn't sound like there is much opportunity in your area at all.
Nothing but acres of diamonds, of course.
- Riverside, CA · Member since 2009 · 10 posts · 1 vote16y
Originally posted by P NW:
Easy? There is nothing mysterious about it. It doesn't take specialized skills or expensive education. There are no deep secrets; it's all out in the open, just read this site.
It takes an investment of time and effort, and you must be able to think and use some basic math. It requires at least basic human relation skills.
Easy? Some people can not make themselves take risks, or move out of their comfort zone, or make themselves complete a project. For them it wouldn't be easy.
But there are almost no barriers to entry, so it's easy to get into. You must slog along and put in all the hours of work and research, but none of that is mysteriously complicated. It only involves time (which everybody has) and effort (which anybody can do)
inspiring post! thank you
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