Would you buy a wholesaling kit?

Question

I have decided that wholesaling is the avenue that I want to start with.

I am in the process of a divorce, and that seems to be the cleanest way to start in real estate while in am going through this. (No added assets to divide down the road)

I attended one of my local REIA meetings last night, and a gentleman named Tom Zeeb was the speaker. He was selling his wholesaling kit. I love the thought of having a step by step guide, but I don't want to throw money at smoke and mirrors.

Advice please.

Thanks to all of you in advance.

Greg Dickerson · Answer

Here are some basic steps tonnage started.First step is to make sure you understand the laws in your area regarding wholesaling which is the assignment of a contract and double closes. Several states have passed laws calling wholesaling brokering and are requiring a real estate license to wholesale. You should talk to a real estate attorney or title company that works with investors in your area to ensure you are in compliance with any laws. They will also have the proper contracts as well. Next you need to educate yourself on the business and your market. You really need to immerse yourself and learn all you can. Attend REI groups and meetups and network with other experienced investors. Start with finding cash buyers. You want professional legitimate cash buyers so you know you can close on the deal and do what you tell the seller you will do. I can’t emphasize this point enough. You do not want to contract a property unless you know you can close it or take it down yourself. Different types of cash buyers are flippers, buy and hold, subject to and lease option. You need to find several of each of these types of buyers and learn what they are looking for. Best way to find cash buyers is networking at local REI meetups, masterminds, Facebook groups, Realtors, title companies, closing attorneys, property management companies, auctions, Craigslist, and bandit signs. You can search real estate transactions in your tax database. Look for entities and individuals that have bought multiple properties. You may need to search by the address of the buyer as they may change their name or the name of the entity on each purchase. You can also buy lists from companies like list source and there are some REI software companies that have a cash buyer search feature. Best way to find motivated sellers is to purchase lists and compile lists from city and county for 60-90-120 days late on mortgage, pre-foreclosure, delinquent taxes, water cutoff, code violation, probate, divorce, high equity, etc. and mail or cold call. Other methods are driving for dollars, door knocking, wholesalers, craigslist, Realtors, FSBO sites, expired listings, foreclosure sites, put out bandit signs, billboards, newspapers, other offline publications. If you have the funds you can run TV commercials, do pay per click/adwords, facebook, Linkedin, Youtube, and other forms of online advertising and social media postings. Bottom line is consistency. You need to take consistent focused action every day, answer the phone when it rings and follow up and follow through.

Ross Krings · Answer

Thank you both.Kurt. I will order those books right away. I really appreciate the advice.

Kurt Michaelson · Answer

To answer your question - No. I wouldn't buy a wholesaling kit. I would consider enrolling in a mentoring program like TTP from Wholesaling Inc.Before you consider enrolling in a program, or buying a kit like this one, what have you done so far, to begin your education about wholesaling real estate?Have you read either of these books yet?If You Can't Wholesale After This: I've Got Nothing For You...by Todd FlemingWholesaling Bank Owned Properties: Learn How to Wholesale and Flip Houses by Lex LevinradThe Book on Investing In Real Estate with No (and Low) Money Down: Real Life Strategies for Investing in Real Estate Using Other People's Money by Brandon TurnerA few questions:How do you plan to market yourself to sellers?How will you find properties that would be a wholesale opportunity for you and your buyers?What have you done to obtain a sufficient list of cash buyers for any property that you get under contract?You may have answered these questions already to yourself, as part of your strategy to start wholesaling. I would try to connect with some of the other members of the REIA group that you just attended too. Ask them some questions and gain some insight from them, to help yourself out a bit.