Wholesaling Journey - First Steps

[Alfredo Gallegos]

Hey everyone! So for the past years I have been educating myself with RE strategies such as the BRRRR method, Fix/Flip, Commercial, and now Wholesale. Given the state, location (Chicago) and mental, that I am in, I was wondering what would you all suggest as my first steps on getting into wholesaling in Chicago or nearby cities/states.

As of now I don't have my RE license so I know I am limited to 1 sale for the 12 months in Illinois, so I wanted to see if maybe this first sale can help:

1) identify if wholesaling is for me

2) Build capital for my first home purchase (MFH) since I am still with my parents.

I have attended local meet ups and have noticed partnering or maybe potential Joint Ventures can be an option, so definitely opened to any suggestions/advice.

Thanks in advance!

- Alfredo 

[Scott E.]

Not sure where the other Scott is going with his posts. But don't worry, most of us are here to help and point you in the right direction.

1. I definitely recommend getting started close to home. So if you're living in Chicago, you should be trying to your first couple of deals around Chicago. Within a 30 minute drive ideally. Whether you are wholesaling, flipping, or becoming a landlord, it's just infinitely better to invest close to home in the beginning.

2. Wholesaling is much easier said than done. It is a great tool to build capital for your first multi family home purchase. But it's a LOT of work.

3. Because of #2, if it's true that you're only allowed to do 1 deal per year in Chicago as an unlicensed person, I would not pursue wholesaling. You're going to put a lot of work into networking with buyers, underwriting deals, getting to know the right neighborhoods, sending direct mailers, doing door knocking, etc etc. To do all that work for only 1 deal per year would not be worth it (Although I don't know the laws in Chicago. Consult with a local expert to get more direction on this one).

4. Attending meetups is a great way to learn and network. Keep that up.

5. You're going to have a very hard time convincing anybody to do a joint venture with you at this stage. Just due to your age and experience. Don't take offense to that. It's just unfortunately how it goes. Once you have a few deals under your belt this will become much easier.

You've come to the right place. Your mind is in the right place. Keep spending time here on the forums, listening to the podcasts, reading books, etc.