Rental Property Investor · Anaheim, CA · Member since 2019 · 8 posts · 2 votes
Hey BP community,
I have some questions about Wholesaling and practical ways to get started for a beginner. I’ve read quite a few blogs and articles on wholesaling and have learned a lot about the process of assigning contracts. However I don’t know exactly what to do first in order to get closer to my landing my first deal.
Here are a few specific questions I had,
1. Should I focus on developing a Buyers list first? Or looking for a good deal?
2. What do I look for when Driving for Dollars? How can I find those hidden deals?
3. When should I contact a Title Company?
4. How can I find out about the legality of wholesaling in my specific area?
Thank you in advance to anyone who takes the time to help answer some of my questions.
1. Look for both at the same time. You need both to make a good deal, so you might as well get started developing your skills for deal finding while you meet buyers. Be consistent in going to local networking meetings (i.e. go every time), and your list will grow quickly. Take notes, and create a system to store their contact information and investment criteria. Then, when you have a deal, look at your system. If none of your investors meet a particular deal, talk to the 'big fish' in the area and see if they know anyone who's looking for a deal like that.
3. I wouldn't worry about a title company until you have good deal under contract. However, you need good contracts, so find a quality RE lawyer. The local meetups are again good sources.
Hello! What market are you in? People have different strategy's on selling there deals, My advice is build a SOLID cash buyers list first. Many investors have different views on properties so best to have a bunch and you can accept highest and best offer on a property when the time comes. Would stink to have a deal and not be able to sell or assign it due to a minimal amount of investors who are not willing to take on projects at the moment. Driving for Dollars is a great method to find distressed properties because your only expense is Gas! Look for tall grass, broken windows, violation letters on door, ANY form of distress. Take down the address and have it skiptraced and call them direct or simply mail them a postcard stating your interest in making an offer on the property.
Contact a Title company/Attorney ASAP. Before you even start looking for deals you need to make sure your contracts are up to standards in your county and make sure they are familiar with these type of deals. Some/Most are not. Build a good relationship with them because at the end of the day nothing worse than being in a legal bind. Also you find out all the Legal info on doing wholesaling in your county.
1. Look for both at the same time. You need both to make a good deal, so you might as well get started developing your skills for deal finding while you meet buyers. Be consistent in going to local networking meetings (i.e. go every time), and your list will grow quickly. Take notes, and create a system to store their contact information and investment criteria. Then, when you have a deal, look at your system. If none of your investors meet a particular deal, talk to the 'big fish' in the area and see if they know anyone who's looking for a deal like that.
3. I wouldn't worry about a title company until you have good deal under contract. However, you need good contracts, so find a quality RE lawyer. The local meetups are again good sources.
I appreciate the advice. I'll definitely work on building a good quality buyers list first. I'm going to be attending a local REI meetup in February where I intend to meet investors. Do you use excel or some other CRM system to organize your leads?
Driving for dollars is what I plan on doing initially before I invest in lists. Do you disclose that your a “wholesaler” when talking to sellers? I understand that not everyone may know what that means.
Also, to answer your question. I’m starting out in Orange County, Ca.
@Scott Sanchez I would never use the word "Wholesaler" But definitely put in the conversation that there are a few ways to "Close Deals" and sometimes your Investing Partners Finalize your deals but at the end of the day we all close on the date we agree on for the same price we agree on.