Why Wholesaling is Not for Beginners

Beginners

Let's clarify what we mean by beginners first.  Everyone starts somewhere and if you're interested in wholesaling you're going to be a wholesale beginner.  However, in this case, what we mean by beginners is a total real estate newbie.  If you've never even owned a property and know nothing about real estate, wholesaling is NOT going to be for you.  

How do you know if you're "too new"?

If you've been in real estate for a while and you're thinking wholesaling sounds like a great way to add to your income, how do you know if you've got what it takes? Let's talk about the most important things to be successful at wholesaling!  

Number one is experience.  You need to have some idea of how investing works.  If you head out and buy every rundown property you can find, you're not going to make it rich.  You need to be able to either evaluate the property and get an accurate estimate for the numbers or have the contacts who can get you that information.  To sell the property you're going to have to show investors the numbers.  If the numbers aren't close, you've lost a buyer.  If you don't know the numbers, you're not going to even find a buyer.  

Number two is contacts.  You have to know who to reach out to.  You've got this great property that you know if going to make an investor a great deal, now what?  If you know no investors, what are you going to do with that property? You'll just sit on it.  Being a successful wholesaler is largely about having the right contacts.  Having a relationship with several reliable investors who can move fast and afford to pay the best prices for these deal is absolutely priceless.  TIP: When creating your buyer's list, quality over quantity. Get to know your buyers and what they're looking for.  Buyers in a variety of areas, looking at different price points, different property types are all beneficial. Make sure you're working with active buyers who want to buy regularly, once a year or casual investors are not going to make it worth your time.  

Number three is the mindset.  It's easy to get discouraged in wholesaling because it can be an unstable type of real estate.  You will have many contracts fall through to due to the nature of the deal.  It happens.  It is easy for many new investors to become discouraged at these fall throughs and lead to a downward spiral where they give up.  Keeping a positive mindset and not letting setbacks stop you will be a huge key in finding success with wholesaling.