What am I doing wrong when it comes to wholesaling

Question

I recently started reading about wholesaling and decided to dive in. It seems like either I have really bad luck or I am not doing something right. I wanted to virtual wholesale because I live in NYC, and the prices for homes are very high. I wanted to know if I should virtual wholesale or should I just drive an hour or two out of the city to drive for dollars? also I have tried list source and yellow letters and recieved zero solid leads and quite frankly, it is very expensive. Any one in the NYC ( or anywhere for that matter) are who is sucessful in wholesaling and wouldn't mind giving me pointers.

Joanne Eriaku · Answer

Account Closed, I wouldnt recommend a virtual wholesale mainly because it is very difficult to tell the true condition of a property if its all virtual, there needs to be some sort of boots on the ground, whether yours or someone on your team. The whole premise of a wholesale is that you got to be good at doing your due diligence, that way, you will be selling to someone a deal that is so good that even you yourself wished you could have invested in it. Also make sure you get the property under contract, otherwise you would be doing what is called bird dogging. Wholsesaling done right can be a good start, but done flippantly would cause others to take it flippantly too. Build your skills in Due Diligence, make sure you have a solid investment package for a potential investor - give them numbers: repair estimates, After Repair Value, Comparables sale prices, Potential ROI etc

Account Closed · Answer

Thank you guys for your insight. I think I will stop trying to virtual wholesale and just stick to local. Driving out of the city will be better and drive for dollars for now. Gonna go today to orange county and see what they have after searching hot zip codes. Thank you guys again

Lydia R. · Answer

@Sophia Charles Wholesaling can be done anywhere! It is easier in some markets than others for sure. What part of NY are you in? I am mentoring someone right now who is in the Buffalo area and he is crushing it. So its definitely possible! I created a facebook group for new wholesalers and Im helping some of the newbies who want to wholesale virtually get started virtually wholesaling in TX. Send me a PM I would be happy to answer any questions you might have!

Jerryll Noorden · Answer

All...

listen...

no matter what you do, wholesaling, flipping, B&H, it starts with lead generation. Without it you are getting nowhere.

See before you dive in, before you spend a cent on lead generation you NEED to know what your cost / deal is.

It is not about cost/lead, it is about cost/deal.

Once you know what the cost/deal is for your lead gen method be it DMM, what ever, only then can you dive in.

If you have not done your cost/deal calculation you are undeniably winging it. You are just throwing darts with your eyes closed, in a dark room, with the dart board moving around randomly while being blindfolded.

So there should never be talk about "if you have a limited budget". That is just the wrong thing to say in this space. You only start investing and marketing when you KNOW for sure you will get a deal. It is predictability. I know and plan for the amount of deals I make. I can tell you right now that by next money we will have 3 more contracts signed and we will make at least $30K. We can count on this and plan for this.

Ask yourself why is it that you have people that make 500 wholesale deals a month and then you have people like you struggling to get not even a lead... let alone a deal. Do you honestly think that they are better than you? smarter than you? No!

They have a system and you do not. Not many people here have a system, and that is why so many people are struggling.

So get a system going, stop being stubborn or lazy or defiant and realize if you really want to make it you simply cannot just "wing it".

That is honestly the best advise anyone can give you my dude!

Marcus Maloney · Answer

Account Closed wholesaling is challenging you have to be persistent. Keep in mind your looking for less than 1% of homeowners in your market that need assistance. Your marketing efforts have to be consistent. Starting out with direct mail is difficult you may want to incorporate text messaging campaigns. The cost is a lot lower and the response rate a lot higher. Gurus try and sell wholesaling as a very easy business launch but its very labor intensive. Please don’t give up, work NY and the surrounding area. It only take one solid deal to give you the money to really launch your business.

Pierre A. · Answer

Account Closed I will PM you

Account Closed · Answer

Account Closed The biggest issue that you may be having as anew wholesaler is that you're trying to compete in a market with a lot of other new wholesalers as well as the experienced ones. There is a lot of over-saturation in the area and it is making it seem like its much thought than it should be. The biggest thing you can do is provide more value than the others, value meaning "how much less of a headache can this person give me if I go with them?". The easiest way to do this is to educate yourself about the needs of the market and present them as opportunities in a professional way. The biggest tip I can tell you is to find where the old people live, like a lot of old people, then find the homes that are just wrecked, count them and keep the addresses handy, you'll then want to find a piece a land or a lot nearby that can accommodate a 10-12 unit complex. The rest is on you to figure out, just remember that old people don't want to sell their homes if they can't afford to live anywhere that nicer than what they had.

Account Closed · Answer

All you guys are awesome.

Account Closed · Answer

I sent about 500 letters every two weeks for 2 months. I had plenty of call backs but most just curious to know how I was found them and the ones willing to sell wanted way to much. Maybe the area I chose wasn't the right one..... There's a lot of maybes.

But on a positive note. I managed to get a good lead driving for dollars, wish me luck.

@Solomon F, you have a good idea and maybe I might consider that in the near future.

Anthony Dadlani · Answer

@Pierre A.

Typically we like to stay in a lower price range. Properties in the tristate area are usually above our target range.  Our major markets are in the south east.

Best of luck in all your endeavors.

What am I doing wrong when it comes to wholesaling

Most Popular Reply