Wholesale - what do I need to know?
New to Real Estate · Member since 2019 · 13 posts · 7 votes
Hello!
I'm a grad student with little money and experience, but tons of drive! I'd like to start driving for dollars in my neighborhood to see if I can start finding some deals. That said, I wouldn't know what to do even if I found a motivated seller/buyer. Especially because I have little money to my name, I'm afraid I'd be contractually tied to a property that I cannot afford, should I not be able to find a buyer.
Could someone please walk me through the process? How do I get a house under contract, even if I have very little money? Additionally, how do I sell it to someone else and make sure I get the money for it?
Thank you to anyone reading my post. I'm so grateful for this wonderful community and I hope to grow alongside all of you!
Luke
After listening to like 200 podcasts and watch a bunch of videos you probably still feel like not sure what to do because every featured guest who've successfully done wholesale use somewhat different method in different markets. Nonetheless, there are a couple of good podcasts that can give you a hint. You will need to find out who's operating in your area and offer your free service for learning opportunity. The concept is pretty simple, find houses that are rundown and owners are motivated to sell at a heavy discounted price, and somehow convince the owner to sell it to you while connect the property to a flipper who is willing to pay you a fee to get it. Essentially, you are acting as a middle man. As far as I can tell, it takes quite a bit of leg work and very thick skin to make it from the start. What you can offer at the starting point is your analytical skill and perhaps technical knowledge on how to organize an email or web promo campaign.
Hello!
I'm a grad student with little money and experience, but tons of drive! I'd like to start driving for dollars in my neighborhood to see if I can start finding some deals. That said, I wouldn't know what to do even if I found a motivated seller/buyer. Especially because I have little money to my name, I'm afraid I'd be contractually tied to a property that I cannot afford, should I not be able to find a buyer.
Could someone please walk me through the process? How do I get a house under contract, even if I have very little money? Additionally, how do I sell it to someone else and make sure I get the money for it?
Thank you to anyone reading my post. I'm so grateful for this wonderful community and I hope to grow alongside all of you!
Luke
Have you found any local Investor groups in your area? I ask this because you will meet other investors there and they maybe looking for off market deals. They can tell you what and where they are looking to buy a deal if they can find one. Also in these groups you can find other investors that you can actually learn from, but if they do make sure you are ready to bring them some value in some shape or form and it doesn't need to be monetary. This will help you be able to see what the cost of a rehab will be. This is key, because that is where I see so many new wholesalers fail, they have no idea what rehab actually cost. So their numbers are so off, and people will not take them seriously. A key factor I use when I wholesale, is to make sure that the investor/client makes money if they buy your deal. This just equals repeat business in the end a win win for everyone.
Finding a seller is the challenge, but it is accomplishable. Just stay consistent and follow up if a potential seller is on the fence. Once you get a deal or two done, you can refine your skills with every person you encounter. Be ready to hear a lot of No, and some other worse words. Good luck
That’s a pretty broad question. There are many threads on BP to explain wholesaling already. If you wanted to read through some of them. There’s whole courses and workshops on it. It’s highly unlikely someone is going to fully make you an expert through a post like this.
After listening to like 200 podcasts and watch a bunch of videos you probably still feel like not sure what to do because every featured guest who've successfully done wholesale use somewhat different method in different markets. Nonetheless, there are a couple of good podcasts that can give you a hint. You will need to find out who's operating in your area and offer your free service for learning opportunity. The concept is pretty simple, find houses that are rundown and owners are motivated to sell at a heavy discounted price, and somehow convince the owner to sell it to you while connect the property to a flipper who is willing to pay you a fee to get it. Essentially, you are acting as a middle man. As far as I can tell, it takes quite a bit of leg work and very thick skin to make it from the start. What you can offer at the starting point is your analytical skill and perhaps technical knowledge on how to organize an email or web promo campaign.