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Updated over 15 years ago on . Most recent reply

User Stats

195
Posts
32
Votes
Sage Jankowitz
  • Residential Real Estate Agent
  • Somerville, MA
32
Votes |
195
Posts

How did you develop your wholesaling business?

Sage Jankowitz
  • Residential Real Estate Agent
  • Somerville, MA
Posted

I'm heavily considering a career change to a wholesaler and I wanted to ask you experienced wholesalers, how do you prioritize when starting out?

Do you only look to build a buyer's list at first, or do you simultaneously search for properties as buyers tell you what they're looking for?

Where is your focus in the early stages. How important is it to set-up an LLC, get the proper forms from an accomplished RE lawyer, and figure out a system for determining fees?

Mike Snyder on BP has offered me just a wealth of knowledge (THANKS MIKE!), but I thought I would ask the general BP population as well. In short, I'd love to hear how you developed your business from the ground up and what mistakes or great systems you have implemented.

Most Popular Reply

User Stats

1,981
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659
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Ryan Webber
  • Wholesaler
  • Amarillo, TX
659
Votes |
1,981
Posts
Ryan Webber
  • Wholesaler
  • Amarillo, TX
Replied

Will's sharing some very simple but extremely valuable nuggets.

1. LARGE database of REAL buyers with their CRITERIA

Don't find one or two. Find 50 or 100 or 500. Its a numbers game. Usually 10% of your potential buyers list will be serious buyers.

Make sure they are serious buyers. If they haven't bought many properties yet, then they probably aren't the buyers you are looking for.

Know their criteria. Don't call a low end rental guy with a high end rehab to retail. Know your buyers and give them the respect not to waste their time.

2. PROPERLY analyze investments

What is the REALISTIC ARV? What is the REALISTIC rehab? How much profit is REALISTICALLY on the table? What is a REALISTIC cash flow on the rental? Does it need TOO much work to be appetizing to an investor even if it fits into your 70% of ARV formula?

3. SUCCESSFULLY market to desperate (I like the term motivated better but desperate is accurate) sellers to achieve GREAT purchase prices.

You are not going to wholesale something unless you are selling it at a GREAT price. If you can't successfully find motivated or desperate sellers to sell you the house at an even GREATER price then the GREAT price you are selling it at, then you will fail as a wholesaler. Your whole goal is to buy houses at such cheap prices that most people will think you were lying when you tell them what you bought it for.

You will have to be able to develop a solid marketing plan to find those sellers that are motivated enough and have enough equity to take your stupidly low offers. They're out there. The question is how are you going to find them?

You need to become the best deal finder and have the best network in town. That's what it takes. Finding deals and building your network.

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