Real Estate Wholesale: I am a rookie, what are the first steps???

[Hanzel Chicas]

Hello everyone, my name is Hanzel Chicas. I am currently studying business administration at Pacific Lutheran University in Parkland, Washington. However, for the past few months I've been teaching myself about real estate investing by reading books, listening to audiobooks and watching YouTube videos. I am very interested in wholesaling as a way to begin investing in real estate, since I don't have that kind of money to start flipping houses right away. My question is, how do I know when I am ready to start wholesaling? and How do I start?  

[Eric Janson]

Are there any Real Estate Clubs near you?  I would start there and see if you can find a mentor.  Someone you could work under.  This is what I did when I started out.  Wholesaling is a simple concept, but takes some time to learn how to master. 

When I started, out I built up a buyers list of investors who I could assign the contracts to.  I did this by networking as much as possible.  I let these buyers know that I wholesale properties and asked what kinds of properties they buy.  

Once you have a buyers list, then you can start marketing for properties. There are many ways to do this from direct mail, bandits signs, social media advertising, networking, etc.. You could even work with a real estate agent and find properties that are listed (although this is very tough right now with limited inventory). You will need to learn what price to offer and how to make it a win win for all parties. Understanding how to get ARV and repair costs is crucial.

Then you get one under contract and assign that contract to the end buyer from your list and make your money.  

There is more to it, but you get the idea.  Again, I would definitely find a mentor.  I had to pay mine $5k, but it was well worth it.  If you don't have money to pay them to train you.  See if they need any help with their business.  Be willing to work for them for free if you have to just to gain more knowledge.  Hope that helps.