Am I on the right track?

Question

Hello, I'm Justin writing from Joliet, IL. I am new to real estate investing and looking for a bit of guidance on wholesale and short sales. I have been to numerous workshops, seminars, and purchased too many "Key to success programs". Wholesaling is where everyone says I need to start since I have very little money. I want to make sure I do things the right way, but I am ready to make things happen.

So far I have...

A buying site. Just a basic template, but I figured it would get me started for now.

An email address that seems more permanent than the gmails, and yahoos.

Business cards with website info, email, phone, and a photo of me. On the back of the card it says "I buy houses in Will County."

A membership with a local REIA. I am attempting to network online, and at the local REIA but I am not exactly sure how to effectively do that and be taken seriously. Many say that if you find a deal buyers will come. However, I do not know, or maybe I am not confident in purchasing a house not knowing what my exit is.

I also will be attending the Bigger Pockets REI Summit in Denver. I hope to learn more, and network with some great people!

My next steps are...

Purchasing bandit signs. Does anyone have any good resources for purchasing bandit signs? Are printed or  hand written signs more effective?

Purchasing a listfor a mailing campaign. Does anyone have any good resources on how to find various lists of potential sellers?

Learn the market. I have a few open houses I will be attending this weekend to see what is out there and at what price. Is there any advice about things to look for at open houses, or any other ways to get to know the market?

I know that I need to continue to read and educate myself about real estate and the business, especially on rehabbing. I feel it is impossible to properly wholesale a deal if you cannot accurately estimate repair costs. Does anyone have any advice on how to learn more about repair costs?

I know that I still have A LOT to learn, but I just get so excited about this business that I want to make some things happen now!

Any help is very much appreciated!

Justin Thomason · Answer

Thank you James! I noticed some of you posts as well. Good luck to you!

Mitch, I have been networking to find other investors in the area and so far, dosen't seem like there are many. I know that the wholesale business is not "Cookie cutter" but I'm not sure how I would differentiate from my competition besides: 1. Being creative with my marketing 2. Answering the phone when it rings, Following up, 4. Building a qualified buyers list that can close fast. I will definitely take more suggestions. Thanks for your feedback!

Sam, I understand that I am not purchasing the property. What I meant was that I would be more confident making offers knowing I had interested buyers that had my back. I think you hit the nail on the head when you say it would help if I found a find mentor. I am definitely searching, but I have noticed that many seasoned investors are only interested in a new investor who is taking action. Thank you for all of your advice, Sam.

Thanks again to all of you for taking the time to reply!

Sam Sagor · Answer

However, I do not know, or maybe I am not confident in purchasing a house not knowing what my exit is.  <-- are you? You are wholesaling then you do not have to. You contract to sell their property you then assign that to an end buyer. They actually buy you make the spread. Probably this will only work with a cash buyer but it depends on the seller and their time frame.

Learn the market. I have a few open houses I will be attending this weekend to see what is out there and at what price. Is there any advice about things to look for at open houses, or any other ways to get to know the market?  - No. This is not the only way. This is how to talk to a retail seller / representative. Find out why people buy in your market what they are looking for ... use everything at your disposal to do this. Ask investors at the clubs. Check craigslist, mls, talk to buyers and sellers absorb what they tell you. Do not believe their end without a grain of salt ... but learn.

One thing that would help - find somebody who does this intern yourself for free but obtain a smart way of learning the ropes.

Mitch Kronowit · Answer

Have you sized up your competition? Unless you're the only wholesaler in your area, you're going to need a way to differentiate yourself and gain market share. What can you do that the competition doesn't do? What can you do better? Cheaper? Faster?

Does it sound like I'm making general statements that can apply to wholesaling either houses or toilet paper?

BINGO!  :-)

James G. · Answer

Sounds like you are really moving in the right direction.  Good luck with everything.