How can I start wholesaling ?

Question

Good morning everyone, I’ve been listening to a lot of podcast, reading throughout the forums and I’m interested in the wholesale business but I have no idea where to start, also I’m from New York City and house prices are crazy and it can be a little intimidating. Any advice or ideas for me to get started  ?

Cody B. · Answer

I've been wholesaling part time for 5 months and have closed 2 deals. I make about 100 cold calls every night, more than half go to voicemail, wrong number etc. (using a high rated skip tracing company). I have had several people say they want to sell, and then bail out. I have spent thousands on direct mail, with very little response rate. I have driven for dollars all over my city, found the most distressed properties you can imagine, and the owners have no interest to sell. The majority of sellers I talk to have already been contacted by several wholesalers. You will be competing with major wholesaling, fix & flip companies in every state, people who spend 10's of thousands on marketing monthly. and have full time cold callers and people who specifically drive for dollars. The only chance to get a wholesale deal, is to be extremely consistent. If not that, I would have to say luck is a major part. In conclusion, I wish you the best and just know that this hype of how easy wholesaling is, is far from the truth.

Jesse Brown · Answer

@Aaron Acosta wholesaling is all about supply and demand. When I was starting out it was difficult to find properties, I was looking for everything I thought would make a good deal. Both my time and marketing dollars were spread very thin. Things changed for me when I realized that I needed to find a few very specific buyers and develop a customer persona.

Go to your local title company and ask them to pull a list of everyone who has purchased multiple properties each year going back 3 years. Also, contact every developer/builder in the area.  They are great to work will because they have very specific criteria.

Once you have interviewed your buyers you will have a very clear set of criteria from a group of people that are actively buying. It doesn't have to be a lot of people. I was making over 100k / year from a single home builder. Contrary to what the gurus tell you, you do not need a massive list of buyers, and you don't need to pay for that list. You can build a healthy business with only 6-10 buyers, as long as they are actively buying/closing and have specific criteria.

Adjust your marketing for these new, highly specific criteria and the experience will be so much more enjoyable and profitable.

You will get to a point where you finish inspecting a property and know who to call, how much they will pay, and when they will close. Think of yourself as an extension of their team. All of the stress and difficulty is removed once you know which deals to say yes/no to. Being a good reputable wholesaler takes a lot of work, it is not easy money. If you have the right personality for it and develop good criteria, marketing process, and relationships it can be a very rewarding experience.

Summary: enjoy the process, don't over think the details (at first), identify the demand and go find it through very specific and targeted marketing efforts.

One more thing: Don't overthink your marketing. There is no magic wording or format that will make the phone start ringing. It's about consistency and timing.

Account Closed · Answer

I'm in a similar situation as you and I've turned to virtual wholesaling. Definitely a little tricky but if you find the right partners, more than doable!

Joe S. · Answer

You really broke it down to the Original poster.Wholesaling is not easy and getting good deals is not easy. You are right a lot of investors are spending tens of thousands of dollars a month in Markerting. There have been months I have spent that much looking for deals for myself. From time to time I come across a deal where it would best fit a wholesale. If I was looking for properties to whole sale only I think I might’ve went hungry. :-)

Maurice Smith · Answer

@Aaron Acosta I learned a lot from Max Maxwell on YouTube. I also second @Miller McSwain's recommendation, Jerry Norton's Flipping Mastery is really good too. Both have some real good in-depth material. Max's approach is primarily Off-Market property and he covers creative financing approaches as well. Jerry's covers a lot with both On and Off-Market properties. Also plenty of tips on estimating repair costs. Last one before I forget, Brent Daniels TTP  (Talk to People) is another good one on YouTube.

Miller McSwain · Answer

@Aaron Acosta

I also learned a lot about wholesaling from the forums and the podcast. Those are definitely great resources, and you should continue using those, but I found tons of value in "The Wholesaling Blueprint" by Luke Weber. I recommend it often because Luke takes you through every step of the wholesale process, from marketing to closing with your buyer. In addition to that, I've been trying to find a good YouTube channel that posts good wholesaling content. I recently found a great one called Flipping Mastery. The host often makes videos of actual cold-calls and wholesale analyses that he runs.

Those are my best tips for education, but you should definitely start networking as well to start meeting other investors that may be interested in buying your deals!

Eli Lederman · Answer

Account Closed hello from Brooklyn as well.

Account Closed · Answer

I reached out to a real estate agent who is in Spokane who had posted something about wholesaling and I asked him if he wanted to partner on deals. I bring in leads and he is able to go see the property in person. Hope that helps!

Justin Reed · Answer

Hi @Aaron Acosta and welcome!

Check out wholesaling and direct mail. You can buy and sell anywhere without visiting. It works for land and houses.

I'm direct mail acquisition machine. I pull assessor data (with a direct link) of the type of properties in the areas I want and send ALL the property owners an offer. I scrub the list to remove things like properties with a mortgage, duplicates, etc. and spend a tremendous amount of time on pricing, because although these offers may be a lot less than retail, they are not out of the question. I explain in my offer letter to sellers that I am a serious investor, not and agent/broker, I pay cash, and are prepared to close as soon as x days.

Then I sit back and wait for the motivated sellers to call us. You can of course edit this model to fit how exactly you plan on purchasing and what specific property type you are looking for. Believe me - it works like a charm. That is how I GET THERE FIRST. By the time a deal reaches the MLS or a lead source, someone else has already beat you to it. Also, knocking on doors (aka "driving for dollars") is an outdated way of doing this and honestly isn't worth your time. It's no longer about possible subject to leads - we now have DATA and computers and direct mail to get there first. Please feel free to reach out to me if you have any additional questions - I would love to help!

Miller McSwain · Answer

Account Closed

I'm interested in virtual wholesaling but have never done it. How do you estimate the rehab if you haven't visited the property, and how do you get pictures of the property to send to buyers? Do you have someone on the ground doing these tasks for you, or do you do it 100% virtually?

Thanks!

How can I start wholesaling ?

Most Popular Reply