I want to start wholesaling real estate

I want to start wholesaling real estate

Member since 2022 · 19 posts · 8 votes

I was wanting to get into wholesaling and had a few questions

Should I start an LLC or try and get a deal without first?

Should I start with instate or just try out of state?

Should I try and find a mentor before even trying on my own?

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Jeff SchemmelBusiness Member
Real Estate Agent · Saint Paul, MN · Member since 2014 · 384 posts · 401 votes
4y

LLCs are stupid cheap and very easy to start - anyone can do it for any reason and you shouldn't let this be a barrier.  If you think you'll get sued and you have a lot of personal assets to protect it might make sense to talk to a CPA or attorney about the best way to go about this and what you need to keep in mind when you have one; co-mingling personal/llc funds is a no-no, for example.  if you don't have anything to lose maybe just see if you can get a deal done and go from there.

Why not start local?  I couldn't imagine trying to do a deal where I haven't ever step foot as a brand new investor/wholesaler.  A lot of people invest out of state, but wholesaling is just totally different and often wholesalers rely on local contacts like realtors, lenders, and contractors to offload an assignment quickly.  MUCH easier for you to build that network locally.

A mentor is always a good idea.  you have a MUCH higher chance of success following someone's guidance in any business, hobby, or line of work.  It's also more fun and energizing to work with someone who demonstrates a passion for what they do.  Just make sure you're doing it for the right reasons and you really believe in it as a path forward for yourself and/or your family.

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  • Jeff SchemmelBusiness Member
    Real Estate Agent · Saint Paul, MN · Member since 2014 · 384 posts · 401 votes
    4y

    LLCs are stupid cheap and very easy to start - anyone can do it for any reason and you shouldn't let this be a barrier.  If you think you'll get sued and you have a lot of personal assets to protect it might make sense to talk to a CPA or attorney about the best way to go about this and what you need to keep in mind when you have one; co-mingling personal/llc funds is a no-no, for example.  if you don't have anything to lose maybe just see if you can get a deal done and go from there.

    Why not start local?  I couldn't imagine trying to do a deal where I haven't ever step foot as a brand new investor/wholesaler.  A lot of people invest out of state, but wholesaling is just totally different and often wholesalers rely on local contacts like realtors, lenders, and contractors to offload an assignment quickly.  MUCH easier for you to build that network locally.

    A mentor is always a good idea.  you have a MUCH higher chance of success following someone's guidance in any business, hobby, or line of work.  It's also more fun and energizing to work with someone who demonstrates a passion for what they do.  Just make sure you're doing it for the right reasons and you really believe in it as a path forward for yourself and/or your family.

  • Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    4y

    Wholesale in the market you want to invest it. Build genuine relationships with buyers and realtors and you will have everything you need to buy your first deal when you are ready in that market. 

  • Member since 2022 · 19 posts · 8 votes
    4y

    Thank you for the info!

  • Title Representative · Irvine, CA · Member since 2017 · 874 posts · 519 votes
    4y

    @Spencer Gregory I'd be happy to jump on the phone some time if you want to DM me

  • Wholesaler · Houston, TX · Member since 2017 · 264 posts · 212 votes
    4y

    - When I started I got an LLC to differentiate myself from my business if I ever needed to.

    - My market is Houston so I began all of my marketing efforts here, unless you're in a megacity (NYC, LA) then I would start where you have home court advantage.

    - I got mentorship after my 5-6th deal and it exploded my business. If you are struggling even with all of the free information out there then I would definitely look into coaching a bit earlier. 

  • Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    4y

    Wholesale in the market you wan to buy in in the future. No mentors needed, learn the game your way 

  • Member since 2022 · 19 posts · 8 votes
    4y

    Thanks man! I’ll look more into everything 

  • Kerry BairdPro Member
    Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
    4y

    I didn't start an LLC at the very beginning. We did form one after we had a few deals.

    We now have a holding company and two LLCs in two different states. 

    We started where we lived.

    I bought a course on marketing and it worked.  Bought another course, and learned about probates.  I think that marketing is the skill to learn, as you need to learn how to value and buy houses, and then to sell.  Both sides take marketing. 

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