With $2,000. As a newbie in wholesale

[Jonathan Cisneros]

What’s the best way to invest $1,000 starting as a newbie in Real Estate wholesaling? What marketing strategies? Etc... I’m in the Los Angeles Orange County market.

[Jeffrey Heavner]

@Jonathan Cisneros 

The first thing to remember is never give up! 

As far as a $1,000 budget, I would probably do a few things:

1) design and buy a back window sticker for your car (or tailgate of your truck) so when you’re driving around folks will see what you do (very cheap and effective advertising). Make sure it shows what you do (“we buy houses” and your phone number). Use Fiverr.com and pay someone to design you a graphic. 

Maybe buy some magnets for the sides of the vehicle as well (remove them at night)

2) buy T-shirt’s with your design on them. Screen-print your design on the shirt- front and back. 

3) have business cards ready when people ask about your shirt, car graphic, and during a conversation. Vistaprint.com is the best. 

4) perhaps use some of the money to have an attorney draw up an assignable contract specific to your needs or your state. 

5) maybe use grasshopper.com as a phone service to keep things sounding professional. 

6) make videos about what you do and upload them on Facebook. 

7) use some of the $1,000 to use as due diligence money (give a potential home seller $100 cash in order to put the home under contract for 30-45 days until you find a buyer). You don’t get this money back. 

8) make your own website ($20 per month) to look professional 

9) avoid bandit signs. It’s tempting, but I wouldn’t recommend them.  

10) get to know, and maybe shadow, a home inspector. 

11) know your numbers!!! Novice wholesalers’ scopes of work never project an accurate rehab budget for investors. Always add 20% to your scope of work. Also, go to Lowe’s or HD and get to know the costs of things like bathroom sinks, vanities, the cost of carpet or hardwoods, paint, doors, countertops, etc. 

12) invest in J. Scott’s materials offered by Bigger Pockets. This will help you think like an investor and I think it includes a scope of work spreadsheet if I remember correctly. ($69). 

Hope this helps.  

Jeff