All Forum Posts by: James E.

It's weird that you are asking as a virtual assistant why they are key.

It seems like you are just doing market research, but that won't fly here.

@James E.

Hi James,

I'm not a wholesaler... just an investor who has dealt with wholesale deals.

My broad perspective is that wholesaling is a marketing job - where the wholesaler (on the surface) is trying to help a seller, but ultimately is trying to do that in a way that ends up costing the seller more money than it should have, had the seller taken more traditional means to achieve that sale.  In other words, a wholesaler needs to find a deal where they can get the property under contract for an amount that is low enough that they can not only cut themselves in on the deal (assignment fee, etc), but also pitch it to an investor who sees enough profit in the deal to be worth it to buy it from the wholesaler.  This is often a losing proposition for the seller, unfortunately.

Granted - when a house in in disrepair and would be hard to market otherwise, it is a path forward for the seller.  But usually wholesalers are preying on the desperate - the ones who had a loved one die and can no longer afford the house, or can no longer take care of the house, or who are behind on their mortgage and are about to go into foreclosure, etc.  One could argue that the wholesaler is "helping those people out"... but I would suggest that the wholesaler is more exploiting the seller.

 I have only seen the back end of this where we were the buyer - but I had to deal with the exiting tenant in the situations and truthfully it is usually a sad situation.  Often the seller isn't really dealing with reality well - saying 'mentally challenged' is probably an over statement - but they are so desperate, or in such a bad way for whatever reason,  they will grasp at any straw put in front of them.  

I think almost any seller would be better off just listing their property on the market and would come out ahead financially as opposed to going through a wholesaler.

So that is some 'bluntness' on wholesaling from my perspective.

The other observation I have on the job itself is that it takes a lot of effort. As I said, it's a marketing job.  You not only have to find your seller, you have to find your buyer.  I've read where the response rate to wholesalers cold calling a leads list is some fraction of 1%.  So for every 100 - 1000 phone calls you make, you may find 1 interested party.  Then you have to try and put a deal together from there - which also has a fractional success rate.  Most people call the "Non-Owner occupied home list".  I happen to own 25 properties as an investor.  I get 3-5 calls a day from people who think I would be interested in selling my 'non-occupied' home - but as an investor I have no interest.  So imagine how many of me there are out there you will be calling where you are wasting both my and your time.  I would guess 80%+ of the non-owner occupied homes are owned by investors - just a guess.  And if I am getting 3-5 calls a day it gives you an idea of the competition that exists in the marketplace.  What is the likelihood that you were the first person to reach someone to pitch them your offer?  Pretty low.  Many people outsource this effort to call centers - because they would rather pay to have someone else do that dirty work.  There are other ways to do it - driving for dollars, snipe signs, mailers, etc.  But at the end of the day you are one big marketing company - so you have to decide how interested (or dedicated) you are in putting in A LOT of effort for a very limited return.  Yes, one deal can be worth $10,000... but it's definitely not as glamorous as it looks like on the surface.  

Hope it helps!

Randy

Come on out the third Thursday of every month! This is a casual opportunity to have a conversation with like-minded individuals. All levels are welcome. If you've never done a deal or if you've done a thousand, come meet other people interested in real estate investing. We discuss all sorts of topics including investing strategies, lending/finance, business, health, wealth, happiness, retirement, etc. It's a great time and a great way to expand your nIs 

Hey Brea,

I saw your post and wanted to say hi! I’m also new to real estate wholesaling and based in Houston. It’s awesome to find someone else starting out on this journey.

I’d love to connect and maybe meet up to share experiences and tips. It would be great to have a buddy to learn and grow with in this industry. Let me know if you’re up for it, and we can figure out a time that works.

Looking forward to hearing from you!

Cheers, Shawn

Welcome to the real estate industry, and congratulations on starting your wholesaling adventure.

This journey will be both challenging and rewarding, offering you countless opportunities to learn and grow. As you begin, it's essential to familiarize yourself with the key concepts and strategies that will help you succeed.

First and foremost, building a strong network is crucial. Connect with other investors, real estate agents, contractors, and potential buyers. Attend local real estate meetups and join online forums to expand your contacts and gain valuable insights from experienced professionals.

Above all, be patient and persistent. Success in wholesaling doesn't happen overnight, but with dedication and hard work, you'll achieve your goals. Remember to celebrate your milestones, no matter how small, and continue to learn and adapt as you navigate the ever-evolving real estate landscape.

Hi James, welcome to the community! There is a great group of members on here to connect with.

-Julio

I'm not against paying for education and coaching. I've paid tens of thousands over the years and it has paid off very well.

I just would not pay for wholesaling education. Wholesaling is the hardest real estate strategy.

Welcome to BiggerPockets, you've come to the right place!