Second Thoughts..Is it worth it!?
Real Estate Agent · Richmond, VA · Member since 2022 · 81 posts · 12 votes
Second Thoughts..Is it worth it!?
Most Popular Reply
Michael SmytheBusiness Member
Real Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votesWholesaling usually only succeeds in the long-term with scale.
Anyone can stumble across a deal here and there to make a few bucks, but consistent income requires scaling.
Logical Property Management4.9457 Reviews
15 Replies
- 3yAlex CraigBusiness MemberReal Estate Professional · Memphis, TN · Member since 2009 · 1k+ posts · 1k+ votes
@Latoya Pryor I see a lot of people successful doing. It can expensive, but only takes 1 deal to recoup those cost. I think surfing property management websites and contacting owners of vacant homes. You may find a tired landlord. Driving for dollars using Deal Machine I feel can be expensive.
- Real Estate Agent · Richmond, VA · Member since 2022 · 81 posts · 12 votes3y
Quote from @Alex Craig:
@Latoya Pryor I see a lot of people successful doing. It can expensive, but only takes 1 deal to recoup those cost. I think surfing property management websites and contacting owners of vacant homes. You may find a tired landlord. Driving for dollars using Deal Machine I feel can be expensive.
The thing is I've done and am doing all of what you have mentioned. I just feel there may be a missing key point or something. I've tried partnering with others to learn but everyone in the industry just seems so busy or give misleading information. Maybe a change of circle would be helpful as well. And of course I get it's not their obligation to help me along the way so I'm trying to educate myself with my own found resources to find out what the missing pieces are. It could be just luck and not running into the right deals or timing. Who knows I'll keep trying until I can figure it out. Thanks for your reply
- Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes3y
@Latoya Pryor
Real estate is hard and when most look at the time they spent on it they are making less than minimum wage hoping to hit the winning lottery ticket
Why not get your realtors license ? You would have more success
7e investments53 Reviews - Real Estate Coach · USA · Member since 2022 · 44 posts · 12 votes3y
Quote from @Latoya Pryor:
Honest opinions on wholesaling and is it worthwhile? Been trying at it for a year now and it has yet to be proven as successful as they say. However I do currently have one property under contract which is in the process of probate and issues related to a reverse mortgage that was in place by the deceased mother. May end up being a short sale in the end. However it took me 6 months in to even get close to the deal. Not to mention almost getting screwed on a deal that was posted by a scammer. I've heard creating an SEO for my website would be helpful but I don't come forth with a lot of money for what these people are asking to set it up? I'm sure I could figure out how to do it on my own but have been told that is not the best route to go being inexperienced. OK so how do you get that experience? Experience comes from learning doesn't it?
Your statement is concerning. If you are wholesaling, a short sale is not possible. The point of doing a wholesale deal is to find a home with a lot of equity so that you can flip it to an end buyer and a short sale means that there is no equity at all. If you have a house under contract that you're trying to wholesale and it goes into foreclosure, you could be held liable for the foreclosure. I would tread carefully on this deal.
- Real Estate Agent · Richmond, VA · Member since 2022 · 81 posts · 12 votes3yChris I'm leaning towards that. It just makes better sense and not much worry about legal issues that could unknowingly come with wholesaling. Thank you
Quote from @Chris Seveney:
@Latoya Pryor
Real estate is hard and when most look at the time they spent on it they are making less than minimum wage hoping to hit the winning lottery ticket
Why not get your realtors license ? You would have more success
- Real Estate Agent · Richmond, VA · Member since 2022 · 81 posts · 12 votes3y
Quote from @Rob Jacobs:
Quote from @Latoya Pryor:
Honest opinions on wholesaling and is it worthwhile? Been trying at it for a year now and it has yet to be proven as successful as they say. However I do currently have one property under contract which is in the process of probate and issues related to a reverse mortgage that was in place by the deceased mother. May end up being a short sale in the end. However it took me 6 months in to even get close to the deal. Not to mention almost getting screwed on a deal that was posted by a scammer. I've heard creating an SEO for my website would be helpful but I don't come forth with a lot of money for what these people are asking to set it up? I'm sure I could figure out how to do it on my own but have been told that is not the best route to go being inexperienced. OK so how do you get that experience? Experience comes from learning doesn't it?
Your statement is concerning. If you are wholesaling, a short sale is not possible. The point of doing a wholesale deal is to find a home with a lot of equity so that you can flip it to an end buyer and a short sale means that there is no equity at all. If you have a house under contract that you're trying to wholesale and it goes into foreclosure, you could be held liable for the foreclosure. I would tread carefully on this deal.
This particular deal I have is with a cash buyer who's helping me out through the process so funding is not an issue with this deal if it leads to a short sale for fix and flip. I'm new to this so a lot is concerning to me. Thank you
- Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes3y
Quote from @Latoya Pryor:
Quote from @Alex Craig:
@Latoya Pryor I see a lot of people successful doing. It can expensive, but only takes 1 deal to recoup those cost. I think surfing property management websites and contacting owners of vacant homes. You may find a tired landlord. Driving for dollars using Deal Machine I feel can be expensive.
The thing is I've done and am doing all of what you have mentioned. I just feel there may be a missing key point or something. I've tried partnering with others to learn but everyone in the industry just seems so busy or give misleading information. Maybe a change of circle would be helpful as well. And of course I get it's not their obligation to help me along the way so I'm trying to educate myself with my own found resources to find out what the missing pieces are. It could be just luck and not running into the right deals or timing. Who knows I'll keep trying until I can figure it out. Thanks for your reply
As has been stated, real estate isn't a walk in the park. People who do best at finding properties are people who are trained as sales reps.
Truths about wholesaling especially for newbies https://www.biggerpockets.com/forums/93/topics/1138809-truth...
- 3yMichael SmytheBusiness MemberReal Estate Agent · Metro Detroit · Member since 2023 · 4k+ posts · 3k+ votes
Wholesaling usually only succeeds in the long-term with scale.
Anyone can stumble across a deal here and there to make a few bucks, but consistent income requires scaling.
Logical Property Management4.9457 Reviews - 3yJaron WallingPro MemberRental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
Agree with the above responses.
The entry point for wholesaling is basically free. Your competition could be Billy Bob down the street with two deals under his belt or a multi-million dollar company that's spend $30k per month on advertising. That volume and scale finds the low hanging fruit before you can. There's not many low hanging fruits.
I'd rather be a licensed agent and choose who I want to work with, what I want to sell, where I want to sell it.
- Member since 2019 · 7k+ posts · 4k+ votes3y
Quote from @Latoya Pryor:
Honest opinions on wholesaling and is it worthwhile? Been trying at it for a year now and it has yet to be proven as successful as they say. However I do currently have one property under contract which is in the process of probate and issues related to a reverse mortgage that was in place by the deceased mother. May end up being a short sale in the end. However it took me 6 months in to even get close to the deal. Not to mention almost getting screwed on a deal that was posted by a scammer. I've heard creating an SEO for my website would be helpful but I don't come forth with a lot of money for what these people are asking to set it up? I'm sure I could figure out how to do it on my own but have been told that is not the best route to go being inexperienced. OK so how do you get that experience? Experience comes from learning doesn't it?
You'd better spend your good quality time to become licensed appraisal, licensed realtor and a great plumber/handyman/GC.
- 3yJaron WallingPro MemberRental Property Investor · Indianapolis, IN · Member since 2018 · 4k+ posts · 4k+ votes
Quote from @Carlos Ptriawan:
Quote from @Latoya Pryor:
Honest opinions on wholesaling and is it worthwhile? Been trying at it for a year now and it has yet to be proven as successful as they say. However I do currently have one property under contract which is in the process of probate and issues related to a reverse mortgage that was in place by the deceased mother. May end up being a short sale in the end. However it took me 6 months in to even get close to the deal. Not to mention almost getting screwed on a deal that was posted by a scammer. I've heard creating an SEO for my website would be helpful but I don't come forth with a lot of money for what these people are asking to set it up? I'm sure I could figure out how to do it on my own but have been told that is not the best route to go being inexperienced. OK so how do you get that experience? Experience comes from learning doesn't it?
You'd better spend your good quality time to become licensed appraisal, licensed realtor and a great plumber/handyman/GC.
There's a lot of money to be made in trades right now. Especially if you can run a small business with a handful of employees.
- Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes3y
Quote from @Latoya Pryor:
Honest opinions on wholesaling and is it worthwhile? Been trying at it for a year now and it has yet to be proven as successful as they say.
Good question and I say not only "no" but an emphatic "HELL NO!", and here is why:
Boiled down to it's simplest explanation, at fundamentals, what is Wholesaling? It's finding a home seller.
Boiled down to it's simplest explanation, at fundamentals, what is a Real Estate Listing Agent? It's finding a home seller.
They are EXACTLY the same thing. Wholesaler "guru's" HATE to acknowledge this but it's the facts. EVERY home being sold on MLS was an "off-market" potential that a person dug up one way or another, exactly same as a wholesaler.
So, ok, what are the differences?
Well, one get's 0-support at all, the other can get TON's of support, guidance, mentoring, even spoon feed leads. For FREE!
One has to work around various laws and regulations on a hope and a prayer that they don't change because the second they are tightened, poof there goes there "business". They other, not only DOESN'T have to worry about any of that BUT BENEFITS from it because the laws and regulations are literally written to GIVE YOU BUSINESS, and are continuously strengthened to force all that business through you.
Now CREDABILITY. This should be a no-brainer but for some reason it's not noticed. Whom do you trust more to get your car worked on, some rand-o from CL or that sent a random mailer, or an ASC Certified mechanic who is part of the shop that you have seen in various town's, has a building you can stop at, and readily recognize? How is real estate any different? Some rand-o who says "hey, let me buy your place" and the licensed, insured agent with a recognized, known brand who says "yeah, let's get a room full of potential buyers together and make em fight to the death to win your property".
It's not even a close competition. Licensed agents out-sell, out-earn, out-perform wholesalers by an insane massive multiplier. You have 1,000X the resources, opportunity, guidance, at a fraction the cost.
As an agent you can start on a team, where they have everything dialed into a science, will spoon feed you leads and all you have to do is learn, close and earn. With time you can graduate up your capabilities, to move-up in the world, keep more of what your earn and, someday, strike out on your own or, make your own team.
And it is the exact same functions as a wholesaler, digging up sellers. BUT, you have more resources on what to do with those properties. As a wholesaler you can only convert those with whatever margin, and have to convince them to do whatever gimmick your trying. As an agent, you don't being squat for $ to the deal, you can "dispo" way more "deals", even those with net-0.
It's just obvious, it is. If serious about getting into real estate, you get into real estate, and that's not wholesaling. Every big name in wholesaling, NOT selling packages actually doing the real estate, has licensed team. Because best place to sell many is MLS right, and most conversions is having most ways to convert a seller right.
1:10 new agents make decent money. 1:20 make good money. 1:40 make BIG money.
Wholesalers; 1:100 make ANY money. 1:1,000 make decent money. 1:100,000+ make BIG money.
If have any chance of ever being an investor, math should at least be your 2nd language, if not 1st, and the math speaks very clearly on this subject.
- Real Estate Agent · Richmond, VA · Member since 2022 · 81 posts · 12 votes3yThank you so much for your reply! You narrowed it down to exactly what my thoughts were and exactly what my post was really about. I appreciate the info and wise advice. It's not rocket science it just makes sense to become licensed to move forward. Credibility is definitely the key in this industry I see. Once again thank you.
Quote from @James Hamling:
Quote from @Latoya Pryor:
Honest opinions on wholesaling and is it worthwhile? Been trying at it for a year now and it has yet to be proven as successful as they say.
Good question and I say not only "no" but an emphatic "HELL NO!", and here is why:
Boiled down to it's simplest explanation, at fundamentals, what is Wholesaling? It's finding a home seller.
Boiled down to it's simplest explanation, at fundamentals, what is a Real Estate Listing Agent? It's finding a home seller.
They are EXACTLY the same thing. Wholesaler "guru's" HATE to acknowledge this but it's the facts. EVERY home being sold on MLS was an "off-market" potential that a person dug up one way or another, exactly same as a wholesaler.
So, ok, what are the differences?
Well, one get's 0-support at all, the other can get TON's of support, guidance, mentoring, even spoon feed leads. For FREE!
One has to work around various laws and regulations on a hope and a prayer that they don't change because the second they are tightened, poof there goes there "business". They other, not only DOESN'T have to worry about any of that BUT BENEFITS from it because the laws and regulations are literally written to GIVE YOU BUSINESS, and are continuously strengthened to force all that business through you.
Now CREDABILITY. This should be a no-brainer but for some reason it's not noticed. Whom do you trust more to get your car worked on, some rand-o from CL or that sent a random mailer, or an ASC Certified mechanic who is part of the shop that you have seen in various town's, has a building you can stop at, and readily recognize? How is real estate any different? Some rand-o who says "hey, let me buy your place" and the licensed, insured agent with a recognized, known brand who says "yeah, let's get a room full of potential buyers together and make em fight to the death to win your property".
It's not even a close competition. Licensed agents out-sell, out-earn, out-perform wholesalers by an insane massive multiplier. You have 1,000X the resources, opportunity, guidance, at a fraction the cost.
As an agent you can start on a team, where they have everything dialed into a science, will spoon feed you leads and all you have to do is learn, close and earn. With time you can graduate up your capabilities, to move-up in the world, keep more of what your earn and, someday, strike out on your own or, make your own team.
And it is the exact same functions as a wholesaler, digging up sellers. BUT, you have more resources on what to do with those properties. As a wholesaler you can only convert those with whatever margin, and have to convince them to do whatever gimmick your trying. As an agent, you don't being squat for $ to the deal, you can "dispo" way more "deals", even those with net-0.
It's just obvious, it is. If serious about getting into real estate, you get into real estate, and that's not wholesaling. Every big name in wholesaling, NOT selling packages actually doing the real estate, has licensed team. Because best place to sell many is MLS right, and most conversions is having most ways to convert a seller right.
1:10 new agents make decent money. 1:20 make good money. 1:40 make BIG money.
Wholesalers; 1:100 make ANY money. 1:1,000 make decent money. 1:100,000+ make BIG money.
If have any chance of ever being an investor, math should at least be your 2nd language, if not 1st, and the math speaks very clearly on this subject.
- Member since 2019 · 7k+ posts · 4k+ votes3y
in practice, you have to bring "value" to transaction. We need to create conducive business environment where it's win win situation for all, for buyer, seller ,agent, lender,everyone.
In wholesaling transaction I felt one guy is screwing the other guy , it is more like win lose situation LOL - Real Estate Agent · Richmond, VA · Member since 2022 · 81 posts · 12 votes3y
@Carlos Ptriawan I'm starting to think so as well lol
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