Beginning in Wholesaling

[Drew McConnell]

I have just begun to explore this world of wholesaling and want desperately to get out of the "rat race" that I'm currently in in the dealership business. I love the car industry, but I rarely have time for my family.

After much research on the internet over the past few weeks, I need a starting line to begin from. Do I spend the $1000 on a program like Cris Chico's Virtual Wholesaling to get an in-depth and quick education? Or is there another avenue in which to take? I am ready to dive in and, after recently buying a home and getting Obama's tax credit, I am ready to dive in and get started. Can some of you help out??

Drew

[Cary Donham]

Wholesaling is not hard in my opinion but it does take some research, education and an action plan. Well on second thought I can see how this might be difficult for some folks but I didn't think it was hard.

1) Research who you can team up with to dirddog for

2) Research and educate yourself on how much repairs on a house would cost the average investor

3) Attend as many of your local investor clubs as you can to learn along with reading this forum as others have said

Here's what I did:

I called the "We buy houses" ads in the paper and asked them if they would be interested in training somone at no cost to them to find homes for. I found only 2 interested to meet with me. I offered to buy lunch so this way we could meet face to face. I picked the one who I felt had the most experience in which I could benefit from.... of course while he made money at the same time.

He took me around to 3 properties while he looked at them and made an offer on them to show me about how much the cost of the rehab would be for his crews. After that I started looking at foreclosures and found a couple of properties for about 1k to 1.5K a piece birddog fee.

I felt at this time I could find and write contacts for myself then assign those contracts over or do double closings to gain a larger piece of the pie.

Then I felt I could rehab one myself but I didn't know how much the costs of the repairs would be for me as everyone has different levels of costs based on their contractors.

So I started writing down all of the names and phone numbers from the sides of vehicles such as Joe Johnson painting or John Doe's Remodeling. I obtained access to some foreclosed properties through a realtor friend of mine and had the contractors meet me at these locations to give me bids because I was interested in buying these homes. I also made sure these homes needed major work including foundation issues.

Now I had a database of contractors, I knew how much to write the offer for and what the numbers needed to look like to turn a profit and presto. I did my first rehab back in 2002 with 14K profit. It's not a smoking deal but 14K isn't bad for the first one. Second one was 21K.

From there I started attending one of the best investor clubs in this area and adding to my database for contractors, investors and hard money lenders.