Which wholesale course to start off with

Question

Hello everyone! I graduate high school next year and instead of going to college, I have decided to start investing into real estate as soon as I turn 18. I chose to do wholesaling because I do not have enough capital to do anything else. My question is what wholesale course would be best to learn from. I don’t care about the price as long as it is worth it!

Wayne Brooks · Answer

@Lance Bolen Go to college!  Your options will be much more unlimited....put in the work for a real education.

Wholesaling is  a difficult, over hyped (mostly by guru types telling you it’s easy because they are trying to sell you something), mostly unethical endeavor. It doesn’t work as well now as it did 10 years ago because 1) there are about 10% of the foreclosures/distressed sellers that there were then, and 2) there are probably 5 times as many wholesaler wannabes chasing that 10%of the deals there used to be....not a good recipe for success.

Tucker Cummings · Answer

@Lance Bolen awesome to hear that you're thinking about real estate this early. Go for it bud!

Now as for wholesaling... please take this from somebody (me) who is actively sourcing deals for rentals and flips, but assigns deals that he (I) doesn't want. You can go down this route, but I strongly advise against it. The reason why I say that is because of your current lack of experience in real estate transactions. We see this over and over in real estate, here is a common example:

You get a list of preforeclosures and start marketing to them. You find someone who says, "please help me, I'm in preforeclosure and I just need someone to take this problem off my plate before I get foreclosed on on this date." You say, "I buy houses (lie) and can solve your problem so you don't get foreclosed on and be in a situation where you can't buy a house or likely get good rent for the next 7 years." You put it under contract with no idea how you're going to assign the contract. You try and try but don't know who is a real buyer and fail to assign it. 2 days before the property gets foreclosed on, you go back the homeowner, who is so excited to have this burden taken off them, and say "sorry, gotta back out of the contract."

You just screwed them over, walk away with no scrapes or bruises, and start trying to do it again on the next one.

Instead of trying to wholesale, try house hacking. You'll start building equity on your own and hopefully will have your entire mortgage subsidized by your room mates. This is a great strategy, especially if you're going off to college. You'll also have more time to learn about real estate, how to source, analyze and transact deals, and time to build up your network.

My biggest "real estate" regret right now is not house hacking sooner. Didn't even know it was a thing but had I known, I'd be way further along in life.

Account Closed · Answer

@Lance Bolen get a real estate license.

Jeff Wydra · Answer

@Lance Bolen I know wholesaling sounds like you don't need a lot of money (because you aren't purchasing the property), but that's a huge misconception. It actually requires a substantial investment for your constant marketing and systems, and it can take months to land your first deal. All the while you are dishing out money to keep the machine going, but nothing's coming in. Beyond the money it is also a constant and significant investment of your time. I only have a few friends that have become successful at wholesaling, and it took years, and lots of capital. I would second Alan's suggestion of getting your real estate license. Other suggestions would be to bird dog some deals, or find someone who is successful and try and bring them value and work with them. That being said, where there's a will, there's always a way. When I was younger (before prop stream and the internet were a thing thing lol) I did some wholesaling myself. I found my deals through probate (actually went into the courthouse basement and went through all the deceased files, lots of fun) then put up bandit signs to find my buyers (pretty sure you can't get away with that much anymore), but it did work out for me, and didn't cost much. Depending where you live something similar could be an option.

Best of luck to you. I wish I had gotten serious about REI when I was your age. I'd be retired and living on a beach by now.

Jonathan Greene · Answer

I am not pro-college in this day and age, but option to bypass college for wholesaling is like being offered money for your first house or to just burn in a fire and selecting the fire. Wholesaling isn't a career and you can't have a real estate investment business without capital. You don't get capital from wholesaling as an 18-year old. Who is going to trust you to buy their house? What background do you have that will make an owner comfortable selling to you and what funds are you using to secure the deal? If you don't want to go to college, get a regular job that pays you money so you can start saving and do real estate on the side, but do not replace education with a horrendous course on wholesaling.

Yoann Dorat · Answer

@Lance Bolen funny how controversial it gets each time someone start a thread about starting off as wholesaler.

All the ones trying to discourage you from doing it are just pissed off because they’re probably losing deals to wholesalers in their market, it’s been the same story for years so don’t give them too much attention.

Regarding the courses there’s good ones and bad ones out there, a lot of “gurus” pitching a business they’re not even doing themselves but depending on the skills you want to develop, the Pace Morby/ subto course on creative financing is very good and the TTP/Brent Daniels one on Cold calling / lead conversion is full of valuable tips as well.

That being said, most of these courses cost $5000 to $15000 which is a lot of money when you’re just getting started, your money would be better off spent on your marketing knowing you can find most of the information for free on YouTube. A course is just a shortcut if you don’t want to spend the time digging up the information.

Another option would be to find a mentor experienced in the field and work for him for free to learn the game.

Hope this will help !

Lance Duran · Answer

Lance,

How is it going? Did you decide to start wholesaling?

Corin Prendiville · Answer

I personally don't think wholesaling is worth getting into as a business. Either become a real estate agent so you can serve more people in the community you live in, or do something else. If you have no money and are looking for a good way to make some cash look into getting into contracting of some kind, there is big money to be made in contracting and you build connections at the same time. You can easily get a job working for a contractor and learn any basic trade within a few months if you are driven and spend any amount of time watching youtube videos on how to do your trade. You could also look into being a mortgage broker, insurance agent, etc. Jobs that have no barrier to entry often also don't make you much money, the people who make money in the wholesaling business have dozens of people making phone calls for them and they take over when those minimum wage dialers get them a hot lead. Just become an agent if you want to be in that kind of business.Any money you'd spend on a wholesaling course is better spent on getting a real estate license. If you can make calls for 4-8 hours a day wholesaling you can do it as a real estate agent and earn 10x what you would as a wholesaler (by virtue of the fact that you can assist all sellers not just distressed sellers) so why even bother wholesaling? An agent can sell a distressed property just as well as a retail property and look significantly more legitimate while doing so. Close to nobody is going to sell their non-distressed property with a wholesaler. Again mortgage broker is better, insurance agent is better, sub-contracting (pressure washing, tiling, drywall, flooring, painting, carpentry, etc). Any number of these options is going to provide better long-term outcomes than simply being a wholesaler. If this was 2013-2015 I would say go ahead and be a wholesaler, but not in this market. Contractors are the people making a killing right now, but if you aren't into hard labor it probably isn't for you (might be a good jumping off point though to get the capital necessary to do what you want to do).

Bruce Woodruff · Answer

@Lance Bolen

Congrats on skipping the college route, totally a waste of time and money nowadays....(unless you're gonna be a Dr or Engineer or something)

I know nothing about wholesaling, but for starters get a RE license, not too hard or expensive. You will wind up with a lot of knowledge and credibility, and a possible fall-back occupation/career.

Your comment - "I don't care about the price as long as it is worth it" is classic.....made me laugh....

Kyle Mccaw · Answer

@Lance Bolen to answer your actual question...I did https://www.flip2freedom.com/ a few years ago. At the time it was worth the $500 or so. It looks different online but I'm sure it is still relevant.

If you are dead set on wholesaling out of high school you should talk to some local wholesaling groups. And the best thing may be to go work for them. DFW has many wholesaling businesses that hire young folks starting out. Most crash and burn. But not everyone.

Which wholesale course to start off with

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