I just discovered wholesale concept! Please help!

[Brittany Glenn]

So I've been doing research lately for different real estate concepts because I am looking to get my license soon and I stumbled a cross the idea of wholesale investing. I've found that you can find a deal and offer x amount then turn around and find a cash buyer at a higher amount making a profit. I would like any and all advice as to what steps need to be taken to get started on this. I'm a stay at home mother of 3 and my husband is working 2 jobs right now so I really need to make this work. I know it's not as easy as the "gurus" make it out to be and I'm ok with working at it I just need to know what to do. So my major questions are where do you find leads? I know you can talk to real estate agents but that can end up costing a finders fee and eventually I'll be my own agent, other than that what are some Internet tools to find them? Once I get started I will be able to afford to put more money into it but as of now any base work I can do from home to get me started will be my best avenue. How do you learn what are good offers to make so you don't get screwed, and how do you find the cash buyers? I watched a webinar by Cody sperber last night and he touched base on an M5 program and direct voicemail messaging? So if anyone has any info on these or anything else that would be beneficial I would appreciate it immensely! Thank you in advance!

[Joe Stafford]

http://www.biggerpockets.com/forums/93/topics/54108-buyer-s-list-how-to-

Above will help. Wholesaling is the ideal way to get started as it takes the least amount of capital. The first thing in my opinion is finding the people you can sell the property to and building a list of those people. Just call around, you can call Realtors and ask if they have buyers for rehab properties, google in your area, basically hit the phones and build a list of as many possible people that may be interested in buying something you find, the more people the better. This way when you do get a property under contract you have a very high likelihood of selling it to someone.

As for finding the homes, my best techniques are: Mailing to absentee owners (google for a list), divorced couples (divorce attorney) and Probate. Agents are the worst (and I am one) we dont take listings that are "such good deals" think about it, why would a seller give their home away AND pay a realtor to do it. Also networking, let everyone and I mean EVERYONE know what your doing. (my neighbor came to me last week and told me about a house next to her best friend and Im closing on it on the 24th) If she didn't know what I did I would not be getting this home.

Now for pricing it out, maybe this is the hardest thing, you have to buy it low enough that you can sell it and make some money and then the flipper can make theirs. Figure a flipper using this ratio (ARV(after repair value) x .70) = X - repair cost = reasonable purchase price

EX. $250,000 (ARV) x .70 = $175,000 - $55,000 (repairs) = $120,000

so here $120,000 is a good purchase price for the flipper (keep in mind this is a rough rule of thumb most people use) now you have to buy the home for less than $120,000 to make your profit, how much is up to you.

I really hope this helps, good luck and take care of those 3 kids! ...... Oh yea, and your husband! :)