How to start?

Question

Hi All,

I've been on the sidelines watching the game for far too long. I started out as an electrician apprentice so I never had the capital, I tried to do my own multi-family FHA and got scammed out of all the little money I had for closing. Now Im back at the drawing board and over my fears, however I need the capital. Working as a handyman gets me thr connections for later in the game when I'm ready for the BRRRR, but not the money I'll need a not fast enough. I have been doing my research about wholesale and feel that is my best option. I'm not sure where to start. I've been looking at "ugly" houses and trying to find the leads but I feel like I'm just spinning my wheels. Any advice? I'd greatly appreciate any insight. Thanks guys.

Andrew Freed · Answer

@Astante James - Become a real estate agent! It is synergistic with the activities that you currently do. You already interact with investors, buyers, and sellers on a normal basis due to your job hence you probably already have clients in your network that you are unaware of. Once you become an agent, focus this commission on providing capital towards your downpayments and don't spend it on anything else. The great thing about being an agent is you get large sums at once hence it is way easier to save than a normal hourly wage. Leverage this savings into a househack on a multifamily. I understand you had a bad experience, however with the right team, househacks are pretty straight forward. Best of luck!

Eudith Vacio · Answer

Hey @Astante James - definitely concur with everyone on this chain that becoming a real estate agent can give you the leverage you might need to increase your capital and your network! In certain states, like where I'm at in IL - if you do more than 3 wholesale deals, then you need your license so it should be beneficial in the long run - let us know how it goes 😁

Mathew Pezon · Answer

Hi Astante,

Thanks for opening up about your situation. I'm sorry to hear you got scammed early on. But don't let that discourage you. It's great that you're eager to get back in the game.

Wholesaling can be a solid way to start, especially if you're handy and well-connected. I'd suggest networking with other investors in your area, going to local real estate meetups, and letting people know you're looking for deals. Build those relationships.

As for finding deals, look into driving for dollars in neighborhoods with old, often neglected properties. Talk to probate attorneys and estate executors to find inherited houses. And send out direct mail campaigns offering to buy houses. It's a numbers game, so persistence and following up is key.

Finally, study wholesaling further so you truly understand the process before pursuing a property. Know your numbers and how to evaluate a deal. Bring in a mentor if needed. Arm yourself with knowledge.

You have the drive, experience, and work ethic. With the right connections and education, you can break into wholesaling. Wishing you the best of luck! Let me know if you have any other questions.

Javier Parra Garcia · Answer

Hey Astante! I am starting off in wholesaling as well but out in Arizona. So far doing endless learning/research about the business is critical to determine whether it's truly something we understand and want to do or not. Once you have that lined up getting a list of cash buyers is important before you find any leads under contract, you wouldn't want to have a property under contract without knowing who it's going to be assigned to for the cash offer. You will end up looking bad and make wholesalers look bad as well.

Facebook/Insta ads are also a good bet, you will need as much of a budget as you can spend on this to get as many leads as possible. IMO this is the modern and more efficient method compared to bandit signs, driving around, etc. Another efficient method is finding off market properties through pre-foreclosure lists, which do cost money but if you're making 10k or more per deal than it's worth the investment.

Also, this has been one of my biggest resources so far:https://www.realestateskills.com/blog/wholesaling-for-beginn...

Having a website and social media presence is also key so you can tie the ads into and have the leads go through. Wix has been great for me in terms of a website and Canva is then free to make basic but decent content for posts, stories, banners, ads, etc.

Astante James · Answer

That is solid advice ... Thank you for your insight

Eliott Elias · Answer

If you are looking for deals to buy, and have no money, you are a wholesaler. Unless you can partner with someone who does have the capital to invest in the deal with you.

Scott E. · Answer

I agree with Andrew. Becoming a real estate agent is a great way to get a deeper understanding of this business and your market... plus it gives you a real shot at actually making some money if you put the hours in.

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