How did everyone start wholesaling?

Question

I'm looking for a good starting point on wholesaling.  Do you have to start a business in order to wholesale?  Do you have to pay taxes?  All I need is some good advice on how to start and I think I'll be good.

Sherlock Holmes · Answer

I just started reading like mad as well.

Sean Davis · Answer

No No No lol.  I ALMOST did that because I tried to start wholesaling without educating myself first.  I think I have read every thread on the first 3 pages of the wholesaling section of this site.  I'm also sure I've read 50% of the books in the real estate section of my local bookstore.  I would never do that now.  But I tell ya, I was sure about to do it about a month ago lol.  75% ARV - repairs isn't even good enough for me now lol.  I usually make my offers at 65% - repairs, or lower.

I'm in Lawton, OK... that's the town outside of Fort Sill Army base.

Sean Davis · Answer

Yea I agree with these guys.  Read more.  Educate yourself first.  I have been trying to get started for about a month now.  I'm in action and getting leads but I've yet to come across a good deal for wholesaling.  But I will tell you this... I tried to go at it without reading much first.  I almost had a house under contract at about 86% of the ARV and it still need about 10 Gs in repairs... the ARV was under 100k... think about it.

Read as many books as you can.  One thing I do is sit in our local book store and read until my eyes water.  My book store buys books so sometimes I buy one, read it, sell it back for store credit, and use that money plus a little pocket change to buy another.  However you do it, just do it.

Account Closed · Answer

If any person who falls off a log could follow a recipe and be a wholesaler without reading then there would be almost no profit in doing so. Entry level jobs pay entry level returns.

If something is a bit more difficult yet there is still income in that business it is worth considering. Those who are willing to pull themselves up and do the homework can earn the rewards.

There are also risks. The risks can be managed through study and practice.

You really have to expect that no forum can provide an all encompassing checklist and template. Expect to read a number of books and to spend a bit of money on your education. You might pay up front to learn before doing or you will pay after when you hit the speed-bumps. It cost more to learn after the fact as major things can go wrong when you do not know what you do not know.

OH. Expect that RE investing is all about tough love. Better to hear it here than to be surprised in the marketplace.

John Corey

Ryan Webber · Answer

As John shared with you, READING through the forum that you are posting on is a good start and will answer many of your questions.

Wholesaling Forum

All you have to do now is read. :D

Brian Naley · Answer

yes but where can I go to learn more about where to get a contract and how to write it up?  I also need to learn more about numbers if a person has equity.  Where can I get some good info so I can start wholesaling?

Account Closed · Answer

You need to do some more reading so you understand the basic deal flow from end to end.

Any business or person that produces income needs to report that income. There could be offsetting expenses. If there are taxes owed then expect to pay them.

Paying taxes normally means you are doing good deals as you are showing income or a profit. A tax return with income helps a lot of lenders know that you are worth lending to (along with other criteria).

John Corey