Wholesaling: Out Of State

[Cody Evans]

Hi BP,

My market is apparently very tough to get started in. I haven't really made too many attempts yet so I am going to give it a few more months but what would your opinion be on cold calling or facebooking people about properties in states better suited for wholesaling? What state/area?

[Jay Hinrichs]

Morris is a turn key broker who specializes it appears from the threads on BP in selling low end rentals.

by low end I mean rentals that are priced at about half of the mean sale point of a particular MSA

you would go about it the same way the locals do... sent out thousands of post cards.. get calls .. go knock on the doors make the deals and try to resell.. some states its quite illegal to sell real estate you don't own you can only market and sell a contract but who really buys a contract.. :)

its illegal In CA too to broker without a license..

But that all said in these areas and especially like  Gary  you can buy houses for 1 to 2k  simply buy them and re market them for 4 or 5 k.. that is totally legal and makes you a TRUE investor..

Most of the guys I know that work those markets and make any kind of money spend a bunch a month on marketing 5 to 10k easy.. then they usually have a person on their team that runs the leads and closes the deals..  

its like anything real estate related there are always a few that rise to the top.. ones with proper capitalization , ability and market knowledge and are very very good at sales.. others usually just blow their few grand on direct mail never do anything and chalk it up to that don't work !