New Wholesaler Chicago market

[Carl Edwards]

Hi I'm Carl Edwards,  I'm new to wholesaling. I'm in the Chicago market in the suburban area. Looking to meet more wholesalers!

[Van Blackman]

@Carl Edwards

Hello sir! Congratulations on starting your real estate/wholesale journey!

I absolutely do not want to discourage you, but there is a LOT of competition in the Chicago wholesale market. That being said, there are a TON of investors looking for quality deals, so if you can manage to provide TRUE value and acquire great off-market opportunities, you'll be a sure success.

Couple of tips:

1. Please do not take properties from other wholesalers, mark up their prices, and distribute to your book of investors without having it under contract yourself. As investors, we HATE that. Of course, there's nothing wrong with co-wholesaling, but the issue in Chicago is that you have TOO MANY inexperienced wholesalers who re-blast blasted properties. I've seen ONE deal from 8 sources before, all at different price points. That's a QUICK way to lose respect and credibility as a wholesaler.

2. Educate yourself on rehab costs and be conservative on your re-sale ARV's. These are the TOP 2 complaints about wholesalers in ANY market. If you send me a deal that needs $15,000 in work, and has an ARV of $200,000, there's a small chance you're going to move that deal. I would recommend getting your real estate license so you can get access to the MLS. This is the only way that you can truly get an "apples to apples" comp for any house. You'll also want to shadow a contractor, or investor to get a feel for rehab costs. Get a house under contract and get 3-5 true bids (line-itemed) from contractors so you can see for yourself that $15,000 rehabs on most houses are hogwash. Even my rentals get $30k-$40k rehab estimates.

3. Lastly... this is a no-brainer. BE ETHICAL. Trust me: if you can be credible AND ethical as a wholesaler, you will be THE MAN! Don't lie to get a deal done, and always be fair to the seller. Please.... just like there's a MASSIVE need for ethical and reliable contractors, there's a MASSIVE need for ethical and reliable wholesalers. Don't be one of the people that gives the niche a bad name. 

Wholesaling is not easy, and it's not quick. Put some real time into it. 6 months from now you can either be a rockstar, or a jokester. It's your choice.

Hope this helps!

Fell free to contact me if you have any questions.

Thanks,

Van