What is the truth about your first wholesell deal?

Question

First of all I am new to this site and and would like to thank whoever made such a great place to get information and network. I am 21 yrs old, live in Charlotte, NC, and am looking to start out whole selling. I have read the guru stuff and have heard real stories on here and a few people I have met. Some of the real stories line up with the get quick rich stuff and some doesn't. So I am here asking you, what are truly realistic goals to start. How long does it take before the first sale? What did you do? What would you have done different? what where the basics of your first transaction? I have some little money but a lot of time. So I look forward to hearing from others experiences.

Mike Osterman · Answer

Yep you can make piles of dough in this business, 30 days or less. Happens all the time.

Just not the first 30. That's what they don't tell you.

Victor Etongwe · Answer

Nathan the truth is it all really depends. I have been at it for a little over 60 days and I haven't got a deal yet, but I have learned a lot. Wholesaling is really a business, and you should give it atleast a year. If you really get your marketing going from what I have read you should be able to do a couple deals in that time.

David Ramos · Answer

Will do Kyle, I'll keep that in mind. Thanks!

Braden C. · Answer

David Ramos I worded my point poorly. I meant to say, will you make a lot of money with no money, probably not. Meaning, if you don't plan on spending any money on your marketing, you probably won't be making a lot. Although I am sure there are wholesalers who don't do a lot of marketing that do fine for themselves.

Personally, I would take a hit financially if I didn't spend money on marketing for my deals. When REO properties were being flooded to the market I wasn't spending any money on marketing and doing lots of deals every month. Since inventory has dried up and the MLS is very competitive, I have to again pay for marketing.

Good wholesalers can make a lot of money. The reason why most don't is because they don't take the necessary steps to get there and burn out before gaining any steam.

Kyle Weimer · Answer

Don't underestimate the money you can make wholesaling. Just sayin.

David Ramos · Answer

Thanks for the replies everyone,

Just like Kyle Weimer said, wholesaling seems to be the basic foundation as to where everything starts, whether I'll choose to go into different niches or not thereafter. At the same time Braden  C. the amount of profits earned in that niche may not be as great as other strategies but in my case right now, I'm more like a sponge trying to absorb as much information as possible to strike into that one first deal, avoiding "analysis paralysis" of course. All in all though I'm glad I joined BP to find answers to such critical questions in the business. Thanks everyone for your sharing your experience and input.

Braden C. · Answer

David Ramos I wanted to reply because you asked, but Ned Carey pretty much said what I would've word for word.

Wholesaling attracts a lot more people than other areas of REI because of the way gurus sell it. It's a "no money" (BS) way to make a ton of money in real estate. Can you put deals together with no money? Sure. Will you make a lot of money? I guess it depends on what your definition of a lot of money is but my personal answer would be no.

My goal when I started wholesaling was to break in so I could climb the ladder of REI. After a couple of years with wholesaling I did a couple rehabs. I found that for me, I enjoyed wholesaling a lot more. Like Kyle Weimer said, having the foundation of being a good wholesaler gave me a lot of tools to get into rehabs but I just didn't enjoy it.

Kyle Weimer · Answer

I think there is common misperception, and implied interpretation that wholesaling is just a place to start in real estate. That is hogwash. 
REAL investors that are are worth their salt, understand that wholesaling is the foundation.
When you control a deal from the beginning, you are setting yourself up for whatever exit strategy you need to employ. This could be a quick flip to a buy and hold guy, a rehab for your self, or a hold property as well.
It's not easy , and yada yada yada, but it's no harder than anything else. Put your work in, learn your markets, JV or co-wholesale with another person to get going. 
And whoever says you need a massive marketing budget, or you can't do consistent deals doesn't GET IT either. I don't care how seasoned they say they are.
Ill  you, I've done 10 deals this year so far just in this one city with ZERO marketing dollars.
And that is just one city. 
You have to be resourceful and creative. Don't listen to the masses. They are always wrong. 
It may not happen your first month, or six months, but doesn't take years either.
There is no cheating, as to where you get your deals from. A deal is deal, as long as its ethical. PERIOD. Go find a deal. Buyers will be there.

Ned Carey · Answer

I think many start with wholesaling becuase they have no money to do rehabs or buy and hold.  It has the lowest barrier to entry of just about any RE strategy.  Wholesaling requires an important skill, finding great deals. If you can find great deals it will pay off in any type of investing you eventually do.

Wholesaling is not easy but no method of getting rich is. It is perhaps the easiest but that doesn't mean it is easy. It is easier then working your way up the corporate ladder, or an advanced degree like a doctor or attorney or just plain hard work and saving all your life. A better way to say it is it is the least difficult.

Good luck - Ned

David Ramos · Answer

Hey everyone,

Lots of good information in this thread. I just wanted to ask @Ned Carey and Braden  C. a question. I might be wrong but I happen to see wholesaling as a good starting point for all new investors and myself, with a solid knowledge base of course. I also think that any real estate niche could be a good starting point. Do you think that, on average, most new investors start in that particular niche mainly due to its level of difficulty or not? I might be putting the question in the wrong way but I'm sure we all would greatly appreciate your feedback on this. Thanks in advance!

What is the truth about your first wholesell deal?

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