Is it too late to get into wholesaling properties?

Question

Hey guys, I'm not totally new to the real estate game as I have been a landlord for several years. I'm an effort to branch out, I have been researching wholesaling and flipping properties. The more I read and research, the more I feel like the market is saturated with investors and that it may be too late to jump in. Especially for wholesaling? Any advice and or tips would be highly appreciated. Thanks!

Josh Cockcroft · Answer

Hey Robert,

Its definitely not too late. I just started out in a relatively small market and was able to quit my job and keep my same quality of life, with realistic goals of ascending further.  Data costs are much cheaper than what they were when I started my research a little over a year ago, making it easier to get in front of motivated sellers. I understand your concern about the saturation, wholesaling is growing in popularity since its such a great way to get a foot in the door.  But there are many inexperienced wholesalers who may think they have a good deal but due to poor cost estimations its not so hot. There are also a lot of daisy chains where there are multiple wholesalers between the buyer and the seller, raising the final cost and making it not such a great deal. The important thing is to consistently market to potential sellers all while developing a reliable buyer's list, and making sure its still a good deal for the buyer after your wholesale fee. If you're able to do this competition wont be much of a concern at all. Wholesaling is simple but its not easy, persistence and hustle is crucial. Keep me posted on your journey, I would love to help in any way I can.

Best of Luck,

Josh

Jose Castillo · Answer

@Robert Hedrick never too late. Just out hustle everyone!

Robert Hedrick · Answer

Thanks guys for all of the responses, I really appreciate all of the help and advice!

Patrick Roane · Answer

Hi Robert,

Good question. I echo what Kurt said and would only add that you are now one day closer to getting your first wholesale deal! Keep plugging away and before you know it, you'll be the next guru giving tips to us newbies.

Peace,

Patrick

Robert Hedrick · Answer

Thanks Kurt, I really appreciate that. Ha, and you couldn't be more right about how easy the "gurus" make it out to be. I was fortunate enough to jump right in with rentals, so I feel like I skipped wholesaling and rehabbing which is what I believe most people start out in.

I like land lording partly because it allows me to continue at my full time job. I was thinking that wholesaling and rehabbing were good ways to speed up the process of buying more rentals. I have a lot to learn though, and have been doing it mostly through reading books. The real estate world is funny, most people are very willing to help, but mostly only when they can get something out of you!

Kurt Michaelson · Answer

@Robert Hedrick I don't think it's too late at all. I think many people have similar concerns like you as they enter into this aspect of real estate. I'm in now way an expert on this, or have extensive experience, but just want to share my opinion to your question.

Wholesaling is, in my opinion, a great way to enter the field of real estate investing, to learn what other investors look for and to find good deals that will benefit all parties involved.

The problem though lies in the fact that not every person who gets started with wholesaling continues to effectively and successfully wholesale. There is frustration with rejections from seller who are asking unrealistic prices for their property, and it's not easy as some guru's make it to be because it's not. There's a lot of work involved. You're marketing deals for buyers and while there may be a lot of people in the market to wholesale, you don't know if they're in your market or not. And honestly, as I've heard someone else say, there's enough real estate out there for everyone, so I don't think it's saturated at all.

It might be a good idea to evaluate your market, or where you would like to get involved in wholesaling and then determine how you'd like to effectively pursue those properties, i.e., probate, tax delinquent, city code violations, pre-foreclosure, foreclosures, divorce, etc., then work specifically in that demographic and focus on hot to succeed.

I hope that helps. All the best to your success.

Is it too late to get into wholesaling properties?

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