Where to begin with wholesaling

Question

So, I want to understand wholesaling better. Normally I start with just reading books that focus on specific strategies, but I'm finding it difficult to find good ones that focus on wholesaling. Any suggestions on books or really ANY educational material on the matter??

Ed Brancheau · Answer

Well, first of all, you're in the right place. And BP has great books in the bookstore.

But I think that if you asked other investors and wholesalers what their #1 mistake was, 99% of them would say, "Taking too long to just jump in."

That would be my #1 mistake.

And I think that it's important to think of wholesaling and investing more like marketing rather than buying or selling.

If you got no money and more time, just find properties on a site like Redfin that have been on the market for more than 90 days, pick up the phone, and start talking to people.

If you have money and little time, send flyers to those same people.

Both methods will likely yield the same results in the same time frame.

Garrett Minter · Answer

@Jonathan Greene is correct. "If you can't wholesale after this.." is the best book I've found. It really walks through every single step. But even with great info it is a bit optimistic. Still would consider it a great read to better understand the process.

Matt Buroni · Answer

@Paris Scroggins I do not have any good books on wholesaling for you, but I would say that finding some people in you area to meet up with and learn from would give you a great amount of knowledge. Find a few properties that you think would be good for wholesaling then offer for an experienced wholesaler to work it with you and split the profit with them. They get a cut of a deal, you get the knowledge you desire, win win! Books area great, but you can't beat learning by doing! And wholesaling is a great place to start because of the small financial commitment. I started out in the wholesale space as well. Good luck!

Matt Buroni · Answer

@Paris Scroggins that sounds like a great idea as well! But I think you are in the right place to find people that you can work closely with. Ideally you're looking for something of a mentor to help guide you, but good luck fining someone who will do that for free! (hence having a few potential deals to entice them to work with you). But it's not hard to find properties and the people who own them so start talking to property owners and when you find something remotely real, present it to a wholesaler that you have met in your area and see if they want to come aboard with you. More than likely they will.

Also, look around for some networking groups in your area too. RE agents, wholesalers, attorneys, flippers, you name it are at these meetings. You probably won't find many deals here, but you will find flippers and wholesalers. Learn from the wholesalers and connect with flippers/investors to have someone to sell your deal to after you get it under contract. Maybe get yourself a few business cards and start passing them around.

Not hard stuff, just takes a little bit of work and before you know it you are putting one foot in front of the other and you are moving baby! Books are good for concepts, ideas, etc. but if you want to really learn something you should do it.

Ned Carey · Answer

@Paris Scroggins as said there is a ton to learn and read right here on BP. Also listen to some of the podcasts and other info here on wholesaling.

However the two most important thing you can do once you have the basics is network and learn your market. When I say learn your market I mean you have to look at tons of properties and evaluate them. Look at open houses, listed properties, other wholesalers deals, auctions, FSBO, and any deal from another investors you can get into. Ask other investors about their deals. What are they going to do with it. How did they evaluate the deal? What are the numbers for repairs etc.

You wont ever truly learn you r market reading a book or even researching on the computer. You have to go out into the marketplace and meet people and look at deals.

Yoann Dorat · Answer

Hey @Paris Scroggins, I would recommend Flip by Nick Ruiz, to get a broader understanding of the wholesaling industry and Reverse wholesaling by Kent Clothier which mostly focuses on the dispo side.

Paris Scroggins · Answer

@Jonathan Greene working with an established wholesaler also sounds like A REALLY great place to start. Thank you for this input! Why not add a little value while gaining a little experience and knowledge!

Paris Scroggins · Answer

@Garrett Minter I'll look it up. Reading is actually one of my favorite parts of my learning process.

Jonathan Greene · Answer

The "best" book on wholesaling that I've seen is If You Can't Wholesaler After Reading This, I've Got Nothing For you by Todd Fleming. It's not good, but it's a good rundown on what to do and what to know. I don't think just starting is a good option at all. If you actually want to be a successful wholesaler you will need to nail down repair estimates for every part of the home, mechanical expenses, as well as ARV. And you can't do real ARV without access to the MLS or a friend or partner with access. I would network on local meetups and events to see who has the best wholesale lists in the area and see if you can be a spotter for them.

Paris Scroggins · Answer

@Ned Carey noted. I'll take a look at some local groups and see what they look for in the market

Where to begin with wholesaling

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