The easiest way to start wholesaling... partner with a cash buyer

[John Horner]

This is an idea that maybe not many have thought of, but it's what I did, and it WORKED. Now this was not at all my goal when I started out, but it's what ended up happening, and looking back it couldn't have happened better!

I started back in October of 2013 sending out small mailers, created some cheap websites and posting multiple craigslist ads per day.

Posting some of my deals on BP got the attention of a local cash buyer who went to look at my first wholesale, and he bought it less then 2 weeks later.

In early November I got another lead from one of my CL ads. I didn't put the property in contract, I didn't blast it out, I simply called my ONE cash buyer, we went and looked at it and he put it in contract that day!

He saw that I was bringing in good deals and I saw that he knew what he was doing as far as estimating rehabs and basically running a real estate investment company.

We decided that we worked well together and to structure a business so that we split the costs of marketing, and based on a loose formula, if he purchased the property he would give me half of the profit of a fair wholesale. If he didn't want the property, we wholesaled it together and split the profit 50/50.

To date he has purchased 4 of my (our) 5 deals, and we have wholesaled one together. We have another in contract now and 1 pending. We are up to 5000 mailers a month, 3 VA's for SEO and Ad posting as well as tripled our budget for PPC to our websites. We are now working on a structure to do fix and flips together along with wholesales.

Don't be afraid to give up 50% of your potential profit to someone else when they can help you grow your business in ways you hadn't imagined.

[Jonathan C.]

@John Horner That's good advice. That is very similar to how I got started.

I signed up for a local mentoring group run by an experienced investor. Over the course of a few weeks I started to get to know her and found out where she wanted to buy properties.

She told me she was always looking for deals and would love to buy anything I could find her that fit her criteria.

I just got my RE license so started looking on MLS every day and putting out offers. She helped me get all the contracts together, and when I got a response to my offers (usually a counter) I would reach out to her, she would eval the property.

If it looked good, I would go out, video the property, and send her the video. If she thought it looked good we would go forward with ratifying the contract.

My first 10 wholesale, which I did in about a year, were all to this one investor.

She also let me ask her a ton of questions and visit the houses while they were being rehabbed.

This is a great way to get started IMO.