Getting started with wholesale in St. Louis, MO

[Casey Wesley]

Hello BP family!!

I am having a little trouble finding help and/or resources in my area from people who does wholesaling. So I am trying to get started on my own. I have done my research on building my team but I have yet to make phone calls or do interviews. The only money I have really is for marketing. What I want to know is, after I find a seller, what is the next step? Do I find out how much the seller wants for the property? Do I get it appraised? I really need help. I have read books, watched videos, and listened to a couple of podcasts. Any pointers?!

[Jack Butala]

@Casey Wesley

Great post.  The key to wholesaling property is buying the property for a lot less than it's worth.  Believe it or not, most people thinking about getting into this business stop at this point so you are ahead of the curve already.

The best way to do this is to implement a direct mail campagin where you are sending offers to property owners that you have identified as good candidaties to sell.

I've been doing this since the '90s and here's some tips:

1) Find a market where the homes / land are relatively consistent (same age and or square footage).  Doesn't have to be any where near where you live.

2) Get a list of properties owners there.

3) Remove all the properties that have any mortgage associated with them.  Mortgages dictate the lowest price the seller is willing to accept.  You want that price to be really really low; obscenely low.

4) Send them offers in the mail (post cards and colored letters don't work as well).

If you do this correctly, you will purchase about 1 property for every 100 letters you send.

Here's some friendly free advice:  Do not ever buy a property that is "For Sale." 

Someone has gotten there before you and beat you to it.  Usually it's a real estate agent.

Wish you the best.