how do you not get so frustrated

Question

Can I be brutally honest? I have no idea what I am doing and I feel like i am walking in total darkness...as my friend said, don't get analysis paralysis...I am an action person, but I just don't know what actions to take first. I want to begin with wholesaling first because I have little money, but not sure if I should buy a list; drive the city....I like to see results, but I am out of my element!

so, now that I have vented...would someone PLEASE give me 5 steps to do TODAY so I can feel like I am accomplishing something!!!

Thank you for letting me vent! You all are great!

so, now that I have vented...would someone PLEASE give me 5 steps to do TODAY so I can feel like I am accomplishing something!!!

Thank you for letting me vent!  You all are great!

Ned Carey · Answer

@Carla Harris despite claims of REI teachers this business is NOT easy. The fact is most who start don't make it. That is a fact most of the people selling expensive courses won't tell you. If it really was easy and risk free,  the rewards would not be so high.

That said, this is a business any one can do with persistence, determination and a willingness to do some things that make you uncomfortable.

1) Get a realistic view of the business. It is not easy, It does take money, it is not risk free. Those are all issues that can be dealt with in time but if you start with unrealistic expectation you will likely fail. How long have you been trying? It takes probably an average of 6 months of work to get a  first deal. Many take longer and in DC trying to get a wholesale deal may be even tougher.

2) Get educated, you can do that right here on BP there are a ton of resources. I suggest you start with the free beginners guide under the education tab. Two key things you need to know are the strategies and how to evaluate deals.

3) Locate capital It takes money to invest. It doesn't have to be your money but you do need money.  You need money other than mortgages and traditional real estate financing. You need money for marketing, down payments, carrying costs, rehab costs, unexpected expenses. (one thing you can expect is you will have unexpected expenses). Start saving you seed capital. Talk to potential partners or private lenders like friends, family and associates. Build your credit and get credit cards or lines of credit.

4) Learn your market. The best deals go to the people who know the market the best. They can react more quickly when they see a deal and they can see value where others miss it. you don't learn your market behind a computer screen. You learn it out on the streets looking at deals. Look at all kinds of deals: open houses, listed properties, wholesalers deals, deals from your own marketing, Public auctions, other investors rehabs or rentals.

5) Build your network. Real estate investing is a team sport. You need a network of others to be successful. Accountants, attorneys, other investors, Buyers, Wholesalers, Agents lenders, etc. are some examples of the type of network you need to build. Keep active here on BP. Go to investor group meetings. Go talk to lenders ans see what their requirements are. Get references for attorneys, CPA, contractors etc.  While you are out looking at 100 houses to learn your market you can also be building your network at the same time

My network and knowledge of the market are invaluable to me.  If you don't have money to start now you can be working on four and five while you build capital. It doesn't take money to build your network or to learn the market, that is something anyone can start with NOW.

Good luck

Mindy Jensen · Answer

Hi @Carla Harris.

Getting started can be really frustrating. There is so much you don't know.

I'm tagging @Russell Brazil, who is an agent in DC. Send him a note and ask if he will sign you up to receive MLS listings. That's one of the best ways to learn your market - what houses sell for both fixed up and before repairs.

So here are some things to do:

1. Decide where you want to invest. Do you have a particular neighborhood that appeals to you? Keep it small at first, because you'll need to learn it before you can analyze deals.

2. Learn your market. You have to know what the going rate is for properties in your target market, so you'll know a good deal when you see it. A 2-bedroom shack for $75,000 might be a smoking-hot deal. It also might be ridiculously overpriced for your area.

3. Analyze deals. Real estate is individual - every property is different. There are different levels of repair necessary for each property, each will appeal to a different type of buyer. Just because it is priced at $75k in a neighborhood that is selling for $150k doesn't make it a good deal if there are $100k of repairs.

4. Learn basic rehab costs. J. Scott's The Book on Flipping Houses comes with The Book on Estimating Rehab Costs. While you said your intent is wholesaling, you will most likely be selling to rehabbers or landlords who need to rehab to make it rent-ready. Knowing approximately how much it will cost to rehab will make you a better wholesaler.

5. Write an amazing letter. While you can technically wholesale properties from the MLS, your deals will have more meat on their bones if you can find them off-market. Write an amazing letter, then start sending them out. Start really small at first, driving for dollars and then mailing when you find an interesting property.

Russell Brazil · Answer

Thanks for the mention @Mindy Jensen. Also something to consider doing Carla is coming out to some of the local meetups. The closest one to DC is the one in Gaithersburg I think. A lot of BP members attend. We have a round table discussion on all things real estate, and we have seen some beginners like yourself go from having no idea what to do, to do multiple deals just by learning from the group.

Jake Thomas · Answer

With anything in RE it takes time to see results in the beginning. A list of leads or driving the city won't produce instant results but just the first step in a large process.

I would take some more time to educate yourself. This doesn't all happen overnight and you need to dedicate a lot of time to it. First, I would understand what wholesaling really is before you decide that is the path you want to start with. Wholesaling really isn't that easy and I sometimes don't think that is the best place to start for newer investors. I could be wrong and I am sure there are successful new wholesalers but it's not how I began.

Listen to podcasts, spend a few months on these forums reading and learning, go to networking events, take experienced investors out to coffee or lunch and learn from them. You will discover what intrigues you the most and which direction you want to go after some time.

Cole Swartz · Answer

This is excellent! One thing that I would add is WHY do you want to wholesale? You say you don't have much capital which is why you wish to pursue wholesaling as many others in your shoes do. However, wholesaling can often be the most difficult out of all of the strategies. You have to excel in multiple areas (marketing, analysis, networking, negotiating, etc) and on top of that you have to find deals that are so good that not only can you take a cut out of the deal, but also leave plenty of margin for the investor.

As Mindy suggests in #2, I would start out by learning your local market and also write down what your goals are with regards to what you wish to achieve with REI (J Scott's Book on Flipping Houses also has an excellent section on how to analyze your local market). Once you understand those two things, you can then work backwards to your goals. Based on what you know about your market, what strategies would be best suited to helping you reach your goals within your market.

Carla Harris · Answer

Thank you all for the information.  My focus is the DC area and I have been driving for dollars and used some ideas from the site to create letters, which i will send out.  I am also looking into buying a probate list.  Thank you @Mindy Jenson  for the information.  @Russell Brazil I am in NE DC and Gaithersburg is very far from me.  I attended a DC REIA meeting in Hyattsville on Tuesday and they gave some good information (well after the sales part to attend their Bid Event) on wholesaling.   If you ever have the time for someone to mentor, I would be happy to meet with you.

This site is great!  Everyone is so helpful!!

Enjoy your Saturday and happy hunting!

Amjad Humayun · Answer

Is there a BP meet up in Gaithersburg, MD? If so please let me know as I will like to join them.

Thank you

Bhekizwe M. · Answer

Start collecting leads whether from driving for dollars or list providers. Make the calls

Educate yourself on various niche/strategies  of real estate .Attend local meetups

Valerie Hiscoe · Answer

@Ehab Tadrous

I see you were trying to send a question to Mindy. If you put a @ symbol before her name, like @Mindy Jensen, she will get your message.

Your note to Carla about learning whether an area is more rental or owner-occupped is definitely an important thing to know.

Ehab Tadrous · Answer

Hello Mindy Jensen

i have a question for you . i learnt from one of the investors and lenders i listened too that , while analyzing my deal , i have to study the area where i am buying my deal if it is described as a rental area or owning area more , because if it is not classified wright and i have a different exit strategy than the convenient one for the deal , that might lead to not good results , or loss also

so how to classify the area the best way , to make sure you having a good deal

thanks

sincerely

Ehab T

how do you not get so frustrated

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