should i bother getting involved in this?

Question

I am new to real estate investing. and to this website. SO i set up my keywords to track topics i am interested in. one of those was wholesaling. I am shocked at the amount of conversations revoving around wholesaling, it causes me to wonder if the market is not already saturated with wholesalers. I am wondering if I should even bother in this area of real estate investing. what do you think?

Nick Saucier · Answer

You don't have to take my word for it since I'm a newbie still and working on my first deal, but I really think the majority of new people on here come here from the latest guru promising them they will have a Bentley in their driveway a week from now. I think most of them entertain the idea for a few days but aren't serious about really busting their rump and getting out there to actually do deals in the real world. So I wouldn't be put off by the amount of topics on wholesaling on this site.

I've spent the past 3 months trying to market for deals on a below shoestring budget and I'm finally about to put my first deal together so it's definitely possible to make it happen. It all boils down to how bad do you want it?

I've spent the past 3 months trying to market for deals on a below shoestring budget and I'm finally about to put my first deal together so it's definitely possible to make it happen.  It all boils down to how bad do you want it?

John Giamundo · Answer

well thank you all again, you've given me so much more to think about, and I really do appreciate that.  If I choose to enter the real estate bsuiness as a wholesalor I don't intend on doing so without being properly prepared to be successful, and this conversation has really helped me sort out in my mind the things that I still should look into if I am going to go the wholesaler route.

Sean Brennan · Answer

If you have a strong desire to learn, a positive attitude, ability to take rejection, and a "do whatever it takes" attitude you can do it.  Also, you can do it on any budget; but, obviously the more you have to work with the easier it will be.  I am working with around $750 per month to start (two months in so far).

Shaka Farrier · Answer

This is a great post. Jerry Puckett and Tim G. made some very good points. Not everyone has what it takes to survive in the wholesaling industry. I cant stand to see people try to make it seem as if it will lead to overnight success. If you are not good with communicating with people, wholesaling probably wont work you because trust in a big factor in the process.

John Giamundo · Answer

well thanks again, you've given me so much to consider.  Jerry Puckett your first version of your response was probably so well written that it caused bigger pockets to go down before. :)

Jerry Puckett · Answer

John,
Wow. I had typed out a great answer to this, but what ever just happened to have BP down for a while caused me to lose it. I'll try again, but you can never say it so well as the first time....

Contracts:  Use the State approved contract. You don't need anything special to wholesale. Stick with what works, keep it simple. Don't use weasel clauses.

Budget: What you have is what you have. Thoughtfully consider how much you can spend each and every month for 6 months without regard to a deal, then you can plan out a marketing strategy. That's the well proven path to success. Systematically try to increase your marketing budget whenever you can, but do not spend the rent money, or leap into something you really can't afford. When people fire off that one shot (as opposed to a sustained campaign), I consider that Powerball marketing. The odds of you winning are slim to none, but there's a chance you might succeed.

John Giamundo · Answer

thanks again everyone. I value all of your opinions.  what in your estimation is a good amount to have available for marketing?  also, do you agree with me that before i start marketing, that I make contact with an attorney in my area who understands the wholesaling process, and have him draft me some contracts that would be favorable to what i am about to do?

Jerry Puckett · Answer

John,

As Nick Saucier pointed out, there are a lot of wannabes out there. It seems that the overabundance of the keywords "holesale" and "holesaling" (yes, I deliberately misspelled them in order not to trigger the alerts...) come from the new member forums. And in all actuality, a huge number of those (as I look through my notifications) come from well intentioned folks directing those new comers to resources.

Having said that, I don't care how saturated your market is...(look where I'm at. Do you have any idea how much competition there is in a major HOT market like mine? Sheesh!) if you'll apply yourself, follow a few simple steps, not get frustrated and sink a little capital into enough marketing to generate the leads you will need, there's no reason why you can't break through and succeed where so many others fail.

OOps. Okay, there is a reason. Some folks personalities leave them bereft of people skills. Two things you'll hear over and over, and they're both true:

1) this is a numbers game. Absolutely, no question about it. Do all of the above, and you have this aspect covered.

2) this is a people business. Absolutely true. Talking to people is a necessity. Building rapport a must, I don't care how desperate your seller. Do you like talking to people? Are you a good communicator? Can you listen carefully....putting aside simply thinking about what you're going to say next and listening to what your prospect is telling you?

Developing those people skills is just as crucial as a good marketing plan. So do the first without neglecting the second and you will succeed.

Kyle Weimer · Answer

As Anson said, it's popular to talk about it, but where the rubber meets the road there are very few in each market actually putting in the work to do deals consistently.
If you you want to put in the work there is definitely room for you!

Tim G. · Answer

The market is saturated in wanna be wholesalers. A few hard working members of this group will make it to the next level.

It has the lowest barrier to entry, you can call yourself a wholesaler without doing anything. That isn't the case with all other fields of real estate investing.

If the daily habits and tasks required of a wholesaler benefit your personality then yes you should do it. If not, maybe find another niche.

Cheers,

should i bother getting involved in this?

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