Trying to Complete A Wholesale Deal Soon. How do I get started?

Question

I don’t have much money or a team of any kind, so how can I find a deal relatively quickly? I’m thinking of finding a mentor first, especially since I’m 18 and may not know what I’m doing at first. I live in Rockland County, NY, and I’m willing to partner with an experienced wholesaler on a deal and share most of the profits. I’m looking to buy rental properties later so wholesaling is a straightforward way to start in my opinion. I’m frustrated and don’t want to pay a lot to get started, since I’m trying to save for the future.

Aseel Yerunkar · Answer

@Bradley Post Going to agree with @Bill Plymouth here. It sounds like you could really benefit from finding a local group of wholesalers to join/work for. You have desire but if your path is blurry, you could learn a lot from being part of a team that has already done what you are wanting to do, and learned from the mistakes you are bound to make. I would definitely try to get involved in local Real Estate groups to meet wholesalers and offer value -- whether that's helping to make calls, or helping with deal analysis, etc.

I'm quite new to this whole real estate journey too, but I have learned a tremendous amount from people who have already done this before me. I don't know where I would be if I just tried to navigate this world with just my own problem solving skills.

Hope that helps!

John K. · Answer

@Bradley Post

You have to honestly ask yourself, What would you bring to a partnership, currently? A partnership is usually made up of 2 or more people, that bring their set of skills or money. They compliment each other with those skills, so each partner is bringing something of value to the agreement.

I would strongly suggest that you don't start asking for investor money, unless you have something of real value to offer. Do you have extensive construction experience? Do you have excellent negotiation skills to get properties well below market? Do you understand how to properly evaluate a property, to determine all the costs it will need to renovate?

When you bring outside money in you have a huge responsibility to that investor, both ethically and legally. If you are not experienced and you don't have the knowledge to properly take a house from start to finish, you could find yourself in a lawsuit, or worse.

Again, I would strongly suggest you slow down and learn what you need to know. The likelihood that you will succeed on your very 1st deal, is very small if you don't take the time to learn. Take that energy you have to get started, and use it to search this forum like crazy.

Remember, knowledge equals power.

John K. · Answer

@Bradley Post

Your passion to hit the ground running, is admirable and I applaud that enthusiasm.

With that being said, sometimes you have to slow down to move fast.

To be successful in wholesaling, you need to establish your team.

1. Contractors to help you with repair estimates, if you are not comfortable evaluating this

2. Marketing - Are you going to hire this out or do it yourself? A successful wholesaler spends 75% of their time and money, marketing.

3. Buyers - You can't just ask for email addresses. These are not necessarily buyers, thus you have no one to actually buy your deal. Spend time finding actual investors to shop your properties too, so you can close 99% of your deals, if not 100%. You will be less frustrated and even more motivated, if you consistently have buyers.

4. Title companies - They are a dime a dozen, but you need to find those title companies that move quick and are really good at solving problems. You will be dealing with all sorts of properties, so title issues are not all that surprising when they show up.

5. ARVs - Do you have a reliable source to get this data? Don't make the critical mistake of fabricating these numbers, you won't be taken seriously and you will become frustrated, quickly.

6. Attorney - You will definitely want to consult with an attorney to fully understand how a wholesale business needs to operate in your state. You don't want to get in the habit of just signing contracts, without fully understanding what the consequences are to that action.

7. Value - Do you understand what a real deal looks like? To get to this, you have to have real buyers, so you know exactly what they are looking for. This means you are bringing a real value to an investor, and not just wasting their time. Show them that you put real effort into looking for those deals, that truly fit their goals, they in turn will reward you with their time and money.

8. Sellers - How are you at overcoming objections, right now? In this business, you will hear a 1000 reasons why they won't sell, it's your job to overcome those objections. You have to have a sensible solution to a multitude of problems that you will be exposed to. The best closers have those solutions, without ever getting off the phone or leaving the dining room table.

I don't want to discourage you, but I also don't want you to become discouraged. If you slow down right now and take the time to learn the basics, you will have better success from the onset.

I would not suggest that you hire a mentor. There are plenty of people on here more than willing to help you, if you show that you have put some effort into learning on your own, first.

Lydia R. · Answer

@Bradley Post Exactly what @Bill Plymouth said. The wholesalers or investors you want ti bird dog for are the ones you meet at REIAs and real estate meetups. Make sure you work with someone who is reputable so they wont try to screw you over after you’ve done the work for them.

Bill Plymouth · Answer

@Bradley Post I wouldn’t call bandit signs looking for a job or an internship if that’s what you mean.  They put them up looking for business.  Not job inquiries.  Form relationships with wholesalers at REI meet ups.  You want to make sure you’re working with a reputable one!

Lydia R. · Answer

@Bradley Post I agree with everything that @John K has said. Wholesaling is by no means a get rich quick method of real estate investing. If you are 18 and have no job and no money to spend on investing (yes wholesaling costs some money) then your best probability of success will come from getting a job, saving some money to invest in wholesaling and using the down time to learn more about how the process works so you can hit the ground running when you are ready.

Until then you might want to consider bird dogging for an investor or wholesaler in your area. Its a great way to get some experience, make some money and its extremely low cost.

John K. · Answer

@Bradley Post

I hear you. I promise you though, the frustration you feel now will be magnified 10x, if you work hard to get a house under contract, and it does not sell. The patience you show to get started, will pay off 10x for you in the long run, I promise.

What you might do to help earn some money in this and get a cheap education, is find a successful wholesaler in your area and see if they would mentor you in exchange for bringing them solid leads and a small finders fee. You will get valuable information and see how this business works from start to finish.

Jeffrey Charfauros · Answer

@Bradley Post find a good to great deal and money, partners, investors to buy contract will be many... Ask escrow to forward your deals and info to experience (rich) frequent customers.

Jeffrey Charfauros · Answer

@John K. great advice!! I would suggest learning a area close by and become an expert.  Investors like and trust market experts. Network with everyone in field, agents, escrow, etc.

Lydia R. · Answer

@Bill Plymouth Thats exactly why I dont do bandit signs! You get calls from everyone EXCEPT the motivated sellers you actually want to hear from lol!!

Trying to Complete A Wholesale Deal Soon. How do I get started?

Most Popular Reply