Is wholesaling a good starting point???

Question

Hello, I am looking to get started in REI but I don’t have the capital needed to buy properties for rental purposes. Someone told me that I should look into wholesaling as a starting point to learn the business and build capital. In your opinion, is this good advice? If so, what is the best way to get started in wholesaling? PLEASE HELP. Thanks

Lydia R. · Answer

@Jay Hutchinson You are the only one who can make that determination. Wholesaling is a pretty divisive topic around here. Some love it and some hate it. Some people will tell you its illegal if you arent a licensed realtor and some will tell you thats bull honky. Personally I love wholesaling, but its a lot of work and there is a lot you have to learn to be able to do it successfully. There are some great, unbiased, factual blog posts about what wholesaling is (and isnt) my suggestion would be start with those and decide if its something you want to do.

Jerryll Noorden · Answer

Sure, but my point is still this. If YOU came up with a list, so did 30 other investors in your market.

You need to set yourself apart. If you are a rockstar sales person then yes it may still be a good strategy for you, if you can get through the noise.

Also don't build your website. (please). Just go with investor carrot. Just trust me on this!

Sincere Cartier · Answer

@Jerryll Noorden hey, I’m right on the cusp of figuring out wholesaling, I work Full-time banking hours; however I’m thinking of taking tomorrow off in our t get to counties building to get a few lists.. what would you say would be the best starting point to find good leads?

Jerryll Noorden · Answer

I am 100% absolutely it is the BEST way to get started in the business.

As a wholesaler you will learn how to find off market properties.

You will learn how to negotiate with sellers.

You will learn how to negotiate with buyers

you will learn how to do ARVs

You will learn how to to CORs

You will learn how to deal with contracts, assign them and go through it all.

Yeah... wholesaling is an excellent way to get started if you asked me.

I mean I started with wholesaling and look at me. Babies smile when they look at me.

Bill O'Donnell · Answer

@Jay Hutchinson

Marketing can be a way into the real estate world,  if its it's fully legal where you are.  New York state for example makes it very onerous to be legal.

I came to real estate from construction. It was a great way for me. Good paying jobs that enabled me to save capital.

Some come as agents,  financial people etc.

Anything that you can learn from and save from can work.

Account Closed · Answer

Hello Jay!  Wholesaling is usually an oversold type of Real Estate niche to begin.  I have many times lately that OPM is available with 100% funding.  If you need quicker capital you might consider the Fix and Sell type which is usually done over 6 months

Did your promoter have any experience in that subject skill?  If you choose wholesaling figure 2 closings which can help the seller would not have to know your prodit.  You would benefit on knowing some buyers you can count on.

You might do what is called "reverse wholesaling" where the buyer finds out at first to know what buyers want or what they are looking for.  That helps on you to what to look for or find.

The best way to get started is to have a buyers list and to look in a demand area.  Depending how you are raised or have "thick skin" that allows you to hold back from always being honest with the seller about your intention or profit.

I know about this because of my experience and knowledge in real estate and construction in residential and commercial property. Just make sure you budget for to 2 closings and Title companies that will do what you are doing and what you do expect.

The more offers you give should get you to more closings.  Make sure your purchase contract says the purchaser includes "and/or assigns" are included on the buyers ID line.  Your ID says nothing about your city you are in so I cannot make any recommendations on where to try that but try to do properties within an hour drive.  Continual learning is essential as well as your property location.

Good luck to you!

Jerryll Noorden · Answer

well gadayum! you are ready aren't you.

OK get buyers ready. Get contracts ready

find a closing attorney that is investor friendly. Slap them if they aren't and tell them who yo daddy!

Till they become friendly to investors!

Sincere Cartier · Answer

@Jerryll Noorden I have an LLC, my cousin’s a contractor whom I do work for sometime when he’s overwhelmed.

I’m working on the carrot stuff now, thank you.

Truthfully I’m just ready to make it happen

Jerryll Noorden · Answer

Go here:

www.carrot.com

(I an NOT affiliated with them in any way.. everyone keeps thinking I am)

As for what you can do now..

Get an LLC, get a buyers list,

learn how to do ARV's

Get to networking with contractors...

network with agents.

ton still to do to set up and structure your business. Keep in mind. Action items are easy.

It is the planning and setting things up is 80% of the time. Execution is just 20%

Sincere Cartier · Answer

@Jerryll Noorden gotcha, I want to master one thing at a time, I’m not sure what carrot is, however I’m going to look into now,

Aside of the PPC, and website, is there any other strategies that can happen in the now? I’m not a fan of waiting for something to happen, I going to make it happen

Is wholesaling a good starting point???

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