How to find a wholesale deal?

Question

I’ve watched countless hours on YouTube about wholesaling the last 6 months. I’m ready to begin my journey. So what are the best ways to find your first deal ?

Kevin Whisler · Answer

James, you simply could not be more wrong. I've done over 500,000 in wholesale commissions and we've never had a complaint from a seller, a legal issue, or a complaint from a buyer. Please do not spew your negativity to excited new RE investors.

Wholesaling when done the right way can benefit everyone involved. To say that all wholesalers are scummy people that are criminals is not correct. Perhaps you should educate yourself more thoroughly before trashing a part of the industry that you clearly misunderstand.

Greg Dickerson · Answer

There are lots of great ways to find deals. Here are a few things you can do and some of them are free.

You can purchase lists with different motivations like absentee owners, 60-90-120 days late on mortgage, pre-foreclosure, delinquent taxes, water cutoff, code violation, evictions, probate, divorce, etc. and mail or cold call.

Other methods are driving for dollars, door knocking, wholesalers, craigslist, Realtors, FSBO sites, expired listings, put out bandit signs, billboards, newspapers, other offline publications.

You can use pay per click/adwords, motivated seller website with SEO, facebook, Linkedin, Youtube, and other forms of online and social media marketing.

If you have a big budget you can do radio, TV and billboards. Lots of bigger outfits do well with these mediums.

Jerryll Noorden · Answer

OP.

This is how you get leads.

Everyone gives you their battle tested methods, yet NO ONE, NOT ONE person dares to show any proof their system works.

I never liked or understood that.

You get leads through SEO.

Period.

Keep in mind.. BEFORE I show off my proof.

I want to tell you upfront. You can do it yourself. I am not trying to sell you anything. I did it myself, and not only so can you.. but so SHOULD YOU!

Do not pay anyone for SEO. (They all do it wrong anyways.. I promise you this).

Now..

Even during the winter, dead season, slow season, thanksgiving,  it doesn't matter. People problems do not disappear because it snows, because it is a holiday. People need to sell, and they find us. All free highly motivated leads every day on demand like clockwork.

Please my man. do not go drive for dollars, or put up bandit signs, or knock on doors. These methods DO NOT WORK reliably. It is LUCK to succeed doing this. You don't want to base your success on mere luck do you?

Peace my peops

James Wise · Answer

Wholesaling as it's taught is a myth. You need a license to Broker real estate. That's all wholesaling is as it's taught in these programs, it's brokering real estate except instead of being up front & telling the distressed seller that you'll sell their property for X amount & take X amount as your commission / fee you are taught to lie to the seller & pretend you are going to buy the property while you secretly attempt to "assign" your contract.

It doesn't work. Nobody has any respect for wholesalers. Whenever a wholesaler contacts me I simply get the information about the property & reach out to the owner myself cutting the wholesaler out of the deal entirely. If you do business above board as a licensed agent that won't happen to you. The only people making money wholesaling are the guys selling you all of that education.

To be successful connecting buyers and sellers you need to have

• An in depth knowledge of the market.
• Marketing skills.
• Sales skills.
• Negotiation skills.
• Accurately estimate rehab costs.
• Understand how to much time it would cost to run a renovation on the properties you are presenting.

My advice get a real estate license. Way cheaper, no legal issues, more respect and there is a decent chunk of cheap or free training out there from the mega brokerages. Soak it all in while you're trying to get off the ground. It's not an easy job, 90% fail rate but it's better than the 99.9% "wholesaler" fail rate.

Kevin Whisler · Answer

Wholesale commissions & wholesale fees are the same thing by definition. The fee on the deal is income that is paid out legally and on the HUD by licensed and insured title companies. It is not a wad of cash paid in a back alley. Your understanding of the wholesaling business and you saying that it isn't legal is wrong. Spewing that negativity to new users is bad for the community, it steers them in the wrong direction and frankly makes you look like a jackass.

There are plenty of people wholesaling correctly and legally, and making great money in the process. I'm sorry that you are so stuck in your ways in your opinion.

Don Konipol · Answer

@Cesar Pineda

It’s a commentary on the wholesaling guru profession that the OP has spent “countless hours” watching wholesaling videos and none apparently addressed how to find a deal, LOL.  That’s only the most important part.

James Wise · Answer

You are factually incorrect my man. You don't need to take my word for it though. I have posted the law for you below. This is copied directly from The Ohio Revised Code. Every other state has similar laws on the books. A Real Estate license is required to earn a commission / fee in all 50 states.

___

Chapter 4735: REAL ESTATE BROKERS

4735.01 Real estate broker definitions.

As used in this chapter:

(A) "Real estate broker" includes any person, partnership, association, limited liability company, limited liability partnership, or corporation, foreign or domestic, who for another, whether pursuant to a power of attorney or otherwise, and who for a fee, commission, or other valuable consideration, or with the intention, or in the expectation, or upon the promise of receiving or collecting a fee, commission, or other valuable consideration does any of the following:

(1) Sells, exchanges, purchases, rents, or leases, or negotiates the sale, exchange, purchase, rental, or leasing of any real estate;

(2) Offers, attempts, or agrees to negotiate the sale, exchange, purchase, rental, or leasing of any real estate;

(3) Lists, or offers, attempts, or agrees to list, or auctions, or offers, attempts, or agrees to auction, any real estate;

(4) Buys or offers to buy, sells or offers to sell, or otherwise deals in options on real estate;

(5) Operates, manages, or rents, or offers or attempts to operate, manage, or rent, other than as custodian, caretaker, or janitor, any building or portions of buildings to the public as tenants;

(6) Advertises or holds self out as engaged in the business of selling, exchanging, purchasing, renting, or leasing real estate;

(7) Directs or assists in the procuring of prospects or the negotiation of any transaction, other than mortgage financing, which does or is calculated to result in the sale, exchange, leasing, or renting of any real estate;

(8) Is engaged in the business of charging an advance fee or contracting for collection of a fee in connection with any contract whereby the broker undertakes primarily to promote the sale, exchange, purchase, rental, or leasing of real estate through its listing in a publication issued primarily for such purpose, or for referral of information concerning such real estate to brokers, or both, except that this division does not apply to a publisher of listings or compilations of sales of real estate by their owners;

(9) Collects rental information for purposes of referring prospective tenants to rental units or locations of such units and charges the prospective tenants a fee.

(B) "Real estate" includes leaseholds as well as any and every interest or estate in land situated in this state, whether corporeal or incorporeal, whether freehold or nonfreehold, and the improvements on the land, but does not include cemetery interment rights.

(C) "Real estate salesperson" means any person associated with a licensed real estate broker to do or to deal in any acts or transactions set out or comprehended by the definition of a real estate broker, for compensation or otherwise.

(D) "Institution of higher education" includes all of the following:

(1) A state institution of higher education, as defined in section 3345.011 of the Revised Code;

(2) A nonprofit institution issued a certificate of authorization under Chapter 1713. of the Revised Code;

(3) A private institution exempt from regulation under Chapter 3332. of the Revised Code, as prescribed in section 3333.046 of the Revised Code.

(4) An institution with a certificate of registration from the state board of career colleges and schools under Chapter 3332. of the Revised Code that is approved to offer degree programs in accordance with section 3332.05 of the Revised Code.

(E) "Foreign real estate" means real estate not situated in this state and any interest in real estate not situated in this state.

(F) "Foreign real estate dealer" includes any person, partnership, association, limited liability company, limited liability partnership, or corporation, foreign or domestic, who for another, whether pursuant to a power of attorney or otherwise, and who for a fee, commission, or other valuable consideration, or with the intention, or in the expectation, or upon the promise of receiving or collecting a fee, commission, or other valuable consideration, does or deals in any act or transaction specified or comprehended in division (A) of this section with respect to foreign real estate.

(G) "Foreign real estate salesperson" means any person associated with a licensed foreign real estate dealer to do or deal in any act or transaction specified or comprehended in division (A) of this section with respect to foreign real estate, for compensation or otherwise.

(H) Any person, partnership, association, limited liability company, limited liability partnership, or corporation, who, for another, in consideration of compensation, by fee, commission, salary, or otherwise, or with the intention, in the expectation, or upon the promise of receiving or collecting a fee, does, or offers, attempts, or agrees to engage in, any single act or transaction contained in the definition of a real estate broker, whether an act is an incidental part of a transaction, or the entire transaction, shall be constituted a real estate broker or real estate salesperson under this chapter.

James Wise · Answer

I've been around the block a few times. Don't think it's an education on the topic that I lack. You've said it yourself; you've made $500,000 in wholesale commissions. The fact of the matter is that one needs to have a real estate license to legally collect a commission in all 50 states. You are operating outside of the law. As I understand it, selling heroin is rather lucrative as well.

Jason Hammond · Answer

@Cesar Pineda I'm in the same boat as you are, and from what I've been watching, find the deal first, the buyer will come. Do you attend local REI meetings?they are a great place to network.

Jimmy Vreeland · Answer

@Cesar Pineda

I’d start driving for dollars

Check out the lead machine app

It allows you to immediately generate seller info while standing in front of the house

How to find a wholesale deal?

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