Wholesaling for beginners

[Jeff Lively]

My goal for wholesaling is to do 1 deal per 2 months in the year 2017. I will soon live in the Waco, Texas area and will be attending Baylor university. This will be a part time venture but I know that it will take hard work, time,and dedication. I'm looking for advice on how to begin wholesaling. I listening to the podcast, read the forums, articles, and books. I'm looking for overall advice for wholesaling. I understand that the topic can be broad, but really just how to begin and get started. I look forward to reading the feedback! -Jeff Lively Jr.

[Wendell De Guzman]

Jeff,

I've wholesaled over 100 houses since I started wholesaling in 2005 (I actually started in real estate in 2003). We just closed on a wholesale deal today and will close on another one this Friday. 

The 5 keys in succeeding in wholesaling are:

1) Know your numbers - I am a landlord and rehabber first before I wholesaled my first deal so I am familiar with property values (ARV) and repairs. Most newbie wholesalers shoot down their credibility by not being familiar with the numbers and they overestimate ARV and underestimate repairs.

2) Know your market - you should know which parts of your city/town the A, B, C, D and F areas (see below for my definition of these areas). Based on this, find out the hot areas for rehabbers. Where are they going to and look for deals in those markets.

3) Know how to market to find deals and find buyers - direct mail is just ONE way to find deals. You can find deals by networking with other wholesalers who might have deals already. You have bandit signs, you can do Google PPC (pay per click) or you can market on Facebook. Here's our Facebook page to give you an idea of how to market on Facebook. We provide tons of value and we attract other wholesalers with deals and we attract buyers as well.

4) Know how to prescreen buyers - you should ONLY deal with buyers with cash or can qualify for hard money.

5) Know how to control the deal. There are many ways to control the deal. People say you can't wholesale a HUD deal or an REO deal. You can - but not by assigning them. Assigning a deal is just one of the 5 ways out there to get a deal under control and ensure you get paid as a wholesaler.