Struggling Newbie seeks advice on kicking into overdrive

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Struggling Newbie seeks advice on kicking into overdrive

Corey B.
Wholesaler · Senath, MO · Member since 2015 · 26 posts · 3 votes

Good morning from Missouri BP Nation! I hope everyone is well and blessed this Sunday! A great friend and mentor has taught me everything he knows about Wholesaling, and he has done quite well with it. I've taken a few houses under contract and never found solid buyers so I gave up probably to early. 

My biggest concern or probably FEAR is that no local title company would work with me on them unless I strictly double closed. In my mind, if I had the backing for each deal to actually pay for the house and flip to the next buyer same day or next day I would be aggressive in finding and flipping properties. But again, my evil voice says "what if the buyer falls through." I am aware that some transactional lenders exist and I understand point systems, I guess I just don't understand the qualifications for your first flip?"

I have been to and completed Real Estate School in Arkansas but moved to Missouri and never got my license. I have been a Renatus member. While the education seems there with Renatus, I just can't justify coaxing people into a 20k class I know they can get for free on BP, or pay $500 and get an actual real estate license. 

I currently build websites and mobile apps for businesses from home and enjoy it but the income isn't consistent. I would like to do 1-3 house deals a month for a secondary income that I hope would become full time income in 6 months or less. Those of you who have had success, which direction would you point me in. I appreciate your time reading this and look forward to your replies. Have a blessed week! 

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Vince Mayer
Wholesaler · Arnold, MO · Member since 2013 · 348 posts · 183 votes
10y

You sound like you need incentive first of all. You're probably pretty happy coasting along and building web sites and apps. There is no urgency for you.

Secondly, you don't sound like you actually believe in REI. You have no short term goal and no major long term goal to put the effort in. Where is your friend and mentor on this?

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  • Vince Mayer
    Wholesaler · Arnold, MO · Member since 2013 · 348 posts · 183 votes
    10y

    You sound like you need incentive first of all. You're probably pretty happy coasting along and building web sites and apps. There is no urgency for you.

    Secondly, you don't sound like you actually believe in REI. You have no short term goal and no major long term goal to put the effort in. Where is your friend and mentor on this?

    2Reply
  • Corey B.
    OP
    Wholesaler · Senath, MO · Member since 2015 · 26 posts · 3 votes
    10y

    Vince thanks for the reply. I am originally from Arnold Missouri! Would have graduated from Fox High School but we moved to Arkansas. Love the area! There is some truth in your statement. Not about the coasting along, as some months are great, others zero or little income. There is a keen since of urgency and hunger. I believe REI is one of the greatest opportunities and has been since the beginning of time. They don't make more land.

    My goal is to close on up to 3 properties a month for the first six months. My mentor recommends ignoring my area in Missouri and concentrating on Arkansas as they aren't as strict as Missouri with title companies and such. Plus the development over there is staggering. 

    My confidence though lacks on the wholesaling. I did this with cars years and years ago, listed someone else's cars online say ebay, made 10% of what it sold for, flipping the car without ever buying it. To the tune of over 500 cars in one year. Well the revenue office came down on me hard for that and wholesaling is essentially the same thing. Had I bought and titled the cars in my name first, then sold, and not acted as a broker, I wouldn't have gotten the wrath of the revenue office. 

    So If I go into a deal knowing I can write a check for the property, put it in my name, then sell to the buyer, that gives me the confidence of legality and legitimacy. Am I wrong here?

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  • Vince Mayer
    Wholesaler · Arnold, MO · Member since 2013 · 348 posts · 183 votes
    10y

    @Corey B.

    Nope, you are not wrong. You said you are aware of of transactional funding so it indicates to me you don't have any buyers. If it makes you feel better, build a buyers list first then get a deal to offer your buyers list. The bottom line is, you have to have a good deal in an area where buyers want to buy. If it's a good deal, a buyer will buy it.

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  • Gina Worsham
    Wholesaler · North Little Rock, AR · Member since 2016 · 44 posts · 22 votes
    10y

    Hi Corey,

    I've heard the term "Reverse Wholesaling" which is basically locating your buyers, finding out what they are looking for, then go find a deal that will fit them.  This might be a good way for you to get started.  It was helpful for me to start this way, because I wasn't wondering if my deal would get funded.  I'll be glad to help in any way.

    Gina Worsham, 

    North Little Rock, Arkansas

    1Reply
  • John Ching
    Investor · Gilbert, AZ · Member since 2015 · 145 posts · 48 votes
    10y

    Corey,

    Take the plunge! You can't steal second with your foot on first!

    I know it's easier said than done, but that's essentially it. Eliminate your fear that any title company wouldn't want to work with you unless you double-close, that's nonsense. If they refuse that deal, find another title company.

    Building a buyers list is a crucial step for every RE Investor. Look for local REI people or better yet, a group of people. Check the threads here on BP for building a buyers list. As you go along, you will pick up people here and there.

    Have you checked with your local RE agents? Send them an email asking if they have investor clients or house-flippers that are looking for good deals. Let them know you will pay a referral fee lest they think it will be full-commission.

    Like others have said, if the deal is truly good, a buyer will snatch it up.

    Good luck.

    1Reply
  • Corey B.
    OP
    Wholesaler · Senath, MO · Member since 2015 · 26 posts · 3 votes
    10y

    Thanks John Ching and Gina Worsham and everyone for their helpful replies. John, it wasn't a fear, they directly told me in person that they would not work with wholesalers. That I would have to buy the property first in my name. But I am going to work on that buyer list right away, I am nicely located in Southeast Missouri but Right by the Arkansas and Tennessee borders so I should be able to cover all three areas quite well. Thanks again! 

    1Reply
  • Corey B.
    OP
    Wholesaler · Senath, MO · Member since 2015 · 26 posts · 3 votes
    10y

    @Shari Peterson thanks so much! I love and miss St.Louis! Fantastic city and area! I would love to work with you on my first deal if the deal makes sense. I may ask you to hold my hand through it though. :-) Thanks for a great reply! I would be honored to work with you and help you in any way you may need. Thanks again! 

    0Reply
  • Shari Peterson
    Lender · St. Louis, MO · Member since 2009 · 348 posts · 164 votes
    10y

    Happy to do it. Almost all my clients are new investors so I have done a lot of hand-holding! I look forward to working with you!

    1Reply
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