How does a young college student get in on wholesaling?

Question

Alright,

I gotta get through college debt free.

I'm well on my way, but I need to come up with another $10,000 or so over the next year in addition to what I already project making. I closed on my first property about 4 months ago, so for a 22 year old dude just starting out, I have a DECENT understanding of how the real-estate game works.

I understand the concept of "wholesaling," but I don't really know how to start. PLEASE, shed some light on the subject for me.

- I don't need a license to wholesale, right?

- How do I go about building a network of investors to 'wholesale' to?

Also, I have a great background in online marketing... could I utilize that somehow?

Thanks!

Tim Herndon · Answer

@Tyler BellistonCongratulations on your pursuit of becoming a wholesaler! It's nice to see that you are getting into REI at a young age. I was 27 when I started...I will asnwer the question about how to find cash buyers. I have about 20 ways and below I will list 10 of them for you to get started. I hope this helps you and good luck!1) Craigslist: Go to Craigslist and look under the “apartment/housing” category. This is the section that shows rentals. Anyone who has a home for rent, rent to own or “lease purchase is an investor. Contact them. If they have homes for rent, they may need other rental properties to add to their portfolio. Look for terms like “completely renovated” You can also place ads for properties you have for sale as well as “Ghost Ads” to build your buyers list. 2) Google Search: Google is my secret weapon. Really. If I can’t figure it out, find it or just need more information, I almost always just “ask Google”. And, I do the same thing to find buyers for my wholesale houses. You can just type in, “we buy houses” or “cash for houses” in your area or city and you’ll find plenty of A-plus buyers. I’ve flipped many houses to buyers in under 3 hours using this simple search alone. 3) ListSource: Probably one of my favorite (paid) sources online. Finding the correct filter is the key to getting cash buyers from ListSource. These records cost approximately .08-.10 each. You can search for free until you get the list tweaked, then purchase with a credit card and download the list. If I were just starting I would buy a list from here and mail them a postcard right away! 4) MLS Cash Sales: You can also have an agent pull all cash transactions where no mortgage was recorded. Most MLS systems have this filter but you’ll need to establish a relationship with an investor friendly agent to get this information emailed to you in a spreadsheet. You’ll have to sort through the data and there are paid alternatives to this that will save a lot of time. 5) Postcards: I’ve been using postcards for over 15 years. They don’t have to be fancy or expensive. What they do have to be is targeted and show the benefit of using you to the investor. So forget about telling the investor all about you and how great you are, and focus on telling the investor how you’ll solve all his or her problems by finding the very best deals. Example: “save time and money by calling us and have us do all the work for you”. 6) Other Wholesalers: This is a little trick I use to find investors. Many wholesalers list the homes they’ve recently sold. Guess what, many of these homes are sold to investors. So simply copy and paste the address and then see who bought it. And Viola! You’ve got a new investor you can contact. And you know how much this investor paid for the property and where he’s buying. 7) Bandit Signs: Put up bandit signs in the neighborhood’s you want to sell homes in. And here’s the key, don’t make them all fancy. I use black magic marker and hand write all my signs. Actually, I hire people to do it, but you get the idea. Make it look like you’re an individual, not some fancy company. Buyers pay attention to these signs. Do this every time you have a property for sale. If you don’t still do it with a “ghost” property or another wholesalers property until you have your own inventory. 8) HUD Landlords (Section 8): Get a list of Section 8 properties for rent from HUD. This list will have the property addresses, bedrooms and more importantly the investors name an phone number. You can then call them or mail a postcard to these investors letting them know that you have discounted properties for sale in the area near where they already have a house. Ask them if they would mind if you contacted them when you had a great deal. Most will say “YES”. Then add them to your list of lower end houses. We buy and sell all price range houses! 9) HUD Foreclosures: The HUD home store is a great source of investors. All you have to do is go there and look at previous bid results. Record each sale in a spreadsheet, then cross reference the property address in public records to get the investor name and mailing address. We use the property appraiser website in our area. You can also record the agents name in the transaction as many times they specialize in HUD Foreclosures and 10) Flat Fee MLS: Pay a flat fee to get your listing into the MLS. This way, every real estate agent with access to the MLS can potentially show your properties to investors. It’s a small fee to pay for all the exposure you get. In the remarks section put the following - “Investor Special” or “Handyman Special” to insure you get investor activity. Make sure to put “will work with buyers agent”, or “will pay co-op” if you want them to show your property. Use your lock box and make sure you or your assistant is the point of contact.

Chris Piper · Answer

@Tyler Belliston You do not need a license to be a wholesaler. Just make sure you have accurate repair costs and comps on any property before trying to offer it to cash buyers.The way to find cash buyers(investors) is:1. By placing a ghost ad(fake ad) for a property you have for sale on Craigslist. Just grab pics of any property in the U.S., upload them to CL, put a ridiculously low price, and watch the phone ring. When ity does, you tell them it's been sold. Ask them if they are an investor because you are always getting new inventory. Take down their name, number, email, and find out what they like to buy and what areas.2. Putting out bandit signs. Use a burner number, Google Voice, or Sideline number so it can't be traced back to you. Most cities will fine you for bandit signs. But hey work VERY well. On your signs, you basically put the same thing as the CL ad. 3bd/2Ba 1,200sf CASH ONLY!!! MUST SELL!!! (123)456-78903. Get a real estate agent, have them pull all the sold properties from the last 6 months that were paid for in cash. When they give you the list, go to been verified and sign up. Then plug in the cash buyer info, and you'll get a phone number/email for them. Call them and find out what they're looking for and add them to your cash buyer's list.

Sterling White · Answer

Welcome to the site @Tyler Belliston! Congrats on your decision to venture into the world of real estate. - I don't need a license to wholesale, right? In my market a license is not required, but this maybe different for yours. Hopefully some fellow wholesalers from Utah will chime in on this. - How do I go about building a network of investors to 'wholesale' to? Here on bp is a start for finding buyers and also attending local real estate meetups. If you have a good deal someone will be more than happy to buy it.Also, I have a great background in online marketing... could I utilize that somehow? Create a lead generation site. Bring the sellers to you.

Stefan Coles · Answer

Hey Tyler Belliston this is what I got for you that was posed on one of my posts yesterday. You can probably get more info from these sites below. The three in your neck of the woods: Utah REIA (utahreia.org) They also sponsor a monthly BP meetup in Cottonwood. Contact @Jeff Rappaport Utah Valley REIA (uvreia.com) Salt Lake REIA (slreia.com) If you want to venture farther afield. We have a group up in Logan that is starting an Ogden meeting next month (Northern Utah REIA) nureia.org. And I think @Justin Morgan has one in St George. Good luck and I hope to see you around.

Marcus Martinez · Answer

Question 1: Do you need a licence ? Answer: NO Question 2: How do you build a network of investors? Answers: Local real estate investor clubs, BiggerPockets.com, Meetup.com, Google, Facebook, Real estate agents, Craigslist, Question 3: Can your background in online marketing help in some way?Answer: Absolutely! You have a edge over someone who's not tech savy. You can create ads for getting buyers/sellers and quickly get your name and business out there. Technology is the new way of the world. Use your online marketing experience to your advantage. I hope this helped in some way. Have a great day!

Justin Morgan · Answer

Thanks @Stefan Coles .Hey @Tyler BellistonOur Local Southern Utah Real Estate Investors Association is www.SUREIA.comOr hit me up directly on BP!