Getting started/ wholesale/ rehab

[Jewell Ford]

Hello our names is Jewell and Angela and we’re just getting started in real estate. We’re both 23 with okay credit but not good enough for big time loans. We want to rehab mostly but we’re kind of looking into wholesaling to get started if we can’t find a private money lender. We attended the than Merrill workshop and yes a lot of good information but if were going to be honest they are a business and they make a lot of money on people buying their products so they won’t give away any others that’s could help newbies out.

Is wholesaling a good way to get started?

[Kuba F.]

@Jewell Ford and Angela, Welcome to BP!

Yes, wholesaling can be a great way to get started. The way to go about it is to create win-win-win situations, and to listen carefully to your motivated sellers to eke out why they are selling and what their sticking points are. As Gareth said, learning how to run the numbers accurately is also of utmost importance, especially when it comes to marketing the property to your buyers -- they will not go for the deal if the spread is not wide enough.

I wrote a few biggerpockets posts on how to run comps, estimate rehab costs, and find motivated sellers and off-market properties, they are all here: https://www.biggerpockets.com/blogs/8814-investing-with-rei-kit

I feel that the most important information is how to run comps, as without that you are at the mercy of what the seller says their house is worth and have no baseline for where to start negotiations: https://www.biggerpockets.com/blogs/8814/68395-how-to-find-real-estate-comps-and-calculate-after-repair-value

You should start creating a buyers list right away, as getting a property under contract and running out of time to find a buyer is a real possibility.