Beginner investor in Houston

[Cassidy Tucker]

Hi everyone!

I’m looking to start up wholesaling and have a few questions. Is there anyone in the Houston area that would to help me understand some of this better. Or point me in the right direction to find someone. I don’t want to make mistakes on my first deal. Thank you! 

[Ed Brancheau]

That's a pretty general question. So, first of all, you'll get much better answers with more specific questions.

That said, there are things you know like I know how to surf.

There are things you know you don't know like I know I don't know physics.

And there are things that you don't know you don't know. I can't give an example because I don't what I don't know.

This post feels like the last one, right?

Anyhow, here are some basics that are really important to NOT overthink.

First, most people think wholesaling is finding deals, signing deals, and then selling those deals to buyers/investors.

It's not. They have it backwards.

Wholesaling is finding BUYERS/INVESTORS, asking them what they want to buy, finding and negotiating those deals for them to buy, and then selling the contract to the buyer/investor.

If an investor says that they buy 3/2s in 92122, find them 3/2s in 92122.

Then learn other strategies to find them deals that other wholesalers don't use.

For example, 3/2s with 1200 sqft are what everyone wants. But what if you searched for 2/1s with 120 sqft where the buyer/investor could easily add a bedroom and a bathroom?

Because many fewer people are in the market for two-bedrooms, the seller can't charge as much. But even with your $10K wholesaling fee, your buyer/investor would still make much more than buying a 3/2 where the price was driven up from competition.

Now, if you want a good place to start, check out the BiggerPockets bookstore. Those are all great books. Definitely buy the one about the BRRR Method and the one about wholesaling.

And here's the most important piece of advice I can give you...

Just take action in addition to reading!

Call people every day starting today. Call realtors in your area an find one or two that work with investors.

Trust me. If you polled all of the successful people on BiggerPockets, the overwhelming majority will tell you that taking action is the most important thing. Unfortunately, most people let fear slow them down.

They'd also warn you about "Analysis Paralysis" which is basically doing way to learning and research. I'm totally guilty of this one and it really slowed me down.

If I had just taken the action that I did in year three way back at the beginning, I would have been successful within a month.

No joke.