So you wanna be a Wholesaler?

Welcome to my first BiggerPockets blog post. It's for the Newbie guy or gal who wants to get into Wholesaling Real estate, so here we go...

Steps to become a Wholesaler:

1. Before you even think about going out and becoming a "wholesaler" learn the LAWS. The last thing you want to do is put a ton of effort into you business, actually make money and then face legal problems. 

2. Pick and study your target market. I learned this the hard way, I got a lead from a seller in a pretty depressed part of Wisconsin, the numbers were good but the demand was so low in that area I didn't end up getting it under contract because I saw ZERO cash transactions in the area, population was less than 1,800 people I had no buyer list of anyone who buys in that county (major mistake), which leads me to the next step. 

3. Build your buyers list! Some will argue that "if you find a good deal the buyer wills come.." This may be true but if you want to sustain a long term business you need to build your buyers list, what type of business doenst focus on the customer first? I want to point out something: when I say build your list I don't mean you have to build a 2,000 name cash buyers list, I mean AT LEAST get 3-5 buyers on your list, you can continue to grow it once you get your 1st deal, and you'll be more confident because you actually have a deal to show. Those first few buyers or just so you can get an idea of what buyers in the area are Typically looking for, ask them questions! 

4. Find a title company that does double closes and assignments. Try to build rapport with them as well, don't just ask: "do you do assignments", in the long run they may very well add to your bottom line in some shape or form (referrals, discounts, etc). 

5.Get a legitimate Transactional funding company on your side. I'm not gonna make any specific suggestions but I will say this: whoever you choose give them a call and ask what they're gonna say if someone calls to verify your proof of funds etc. Having transactional funds available allows you to actually "Buy houses for cash" (T-Funds show up on the HUD as cash by the way". 

6. Ask a flipper, real estate agent, attorney or whoever is knowledgeable in the field in your area how to fill out a purchase agreement and also how to fill out an option, you don't want to screw up the paper work and ruin your credibility as a professional. 

7. Decide how you're going to get the first deal. Direct mail is the best way to go in my opinion but some people don't have thousands of dollars to spend on their first few Mailings (I certainly didn't!); Until you close the first deal you may not have the cash so pick between: Zillow, Craigslist, Driving for dollars then sending a small mailing campaign, agents etc. It will be hard but if you work it every day you'll eventually get something. The first deal is the hardest to get on average I say it takes 4-8 Months. 

8. Study negotiation. You're gonna be negotiating a lot, becoming a better negotiation will take you a long way, the book Negotiation genius helped me a lot. 

9. Study repair costs. You have to call contractors, read J Scott's book on repairs, read tons of articles, ask flippers to give you average costs, YOU HAVE TO LEARN THIS. it's not very intimidating once you do it 3-4 times. Like anything, you'll get better with time.