All Forum Posts by: Barry Pekin

@Tyshawna Walker,

I'm not in NJ, but I would suggest picking an area that works for you.  It helps to have some expertise and experience where you choose to work.  I would also suggest that you focus more narrowly and don't try to spread yourself too thin.  Pick an area, then focus on marketing in that area in such a way that you become the person think of when they want to sell for cash.  Your marketing should tap into multiple channels that work for you.  Cold calling, door knocking, direct mail, etc.  Focus and be consistent.

Good luck!

@Alicia Herring,

I think I heard a statistic that over 95% of people who sell their house do so by listing with a realtor.  I would also say that the higher the value of the house, the more that number goes up.  Based on that, the likelihood of finding a wholesale deal (let alone consistent deals) in this market is extremely low.  I think the way that you would be the front-runner to close up a wholesale deal in this market would be to be known by the owners.

Remember, there are many ways to make money in real estate.  You have a nice gig going.  The owners in this market should know you and what you have to offer.  If I were sending them a mailing, I would market your current services as well as letting them know that you can also help them if they find themselves in a difficult situation where they need to sell fast (of course, better words would be... better).

If I were in your shoes, having the entrepreneurial spirit, a good business model, and looking to expand, I would look for ways to expand my market (can you offer these services to a broader market?) and grow my business (can you hire people to help with administration, marketing, etc.?)

I would also take the opportunity to look for more lucrative ventures, like wholesaling.  If you want to go this path, how can you work on it without negatively impacting your current business?  If you're out driving a fair bit, learn to D4D (drive for deals).  Keep an eye out for the right type of property that might be a good wholesale opportunity.  As you work with other RE professionals and investors, let them know what you're doing.  Build your network.

Thinking of those properties, they sound like good vacation rentals.  I don't know the area, of course, and that's something that would require owning the property, but it's something to consider.  Perhaps partnering with someone who has the funds where you can take on the decorating and stuff.

It's all about creative thinking.

Good luck!

@Alicia Herring

For wholesale deals, you really need to be sourcing them yourselves.  Houses that are under contract with an agent are near impossible to wholesale.  That said, some of your Realtor connections might come across properties that they don't want to list.  This might be because they are in too much distress, or the owner isn't willing/able to do the work to fix it up.  Ask your Realtors to let you know when they come across anything like that.

I think your skills are great!  Many wholesalers struggle with coming up with good repair estimates, so you definitely have a leg up in that area.  Keep in mind, though, that your buyer may want to do things differently.  They might have their own ideas, people, visions for how to fix up a property.  This is also going to vary based on their exist strategy.  They might want to flip it, or they might want to hold onto it as a rental property.  Flippers are usually looking to make the houses much nicer than landlords. 

As for finding properties, there are all kinds of ways to do this.  I suggest doing some research on that topic.  How you approach this depends greatly on what you're willing to do.  There's direct mail advertising, online, driving for dollars, etc.  They all cost some combination of time, effort, and money.

@Brennan Taberna,

Congratulations on taking action!  You should be proud of getting a deal in the works so quickly.

Understanding the whole process is critical, however.  I recommend reading the book, "If you can't wholesale after this... I've got nothing for you."  It's a quick read and explains the whole process pretty well.

@Cesar Martinez

The first step is NOT to post on a message board asking how to start a new business.  No one is willing or able to give you a business plan in a message post.

The second step is to put in the effort to learn.  There are countless resources available to you.  Go find them and start learning the process.

I suggest starting with the book, "If you can't wholesale after this... I've got nothing for you."

Good luck!

@Cody B.,

Being behind in taxes isn't always a great motivation as @Brian Boyd pointed out.  I suggest stacking motivations.  What if it's an out-of-state investor where the property has been vacant.  That kind of person is more likely to be motivated to selling.

@Alexzaundria Carver,

There are all kinds of tips in this forum.  Browse around and see what people have to say.  I say this, not to be lazy, but for two reasons.  First, there's a treasure trove of ideas in here.  And, second, you need to get used to working for things.  Wholesaling requires a lot of personal effort.  You're going to want to find buyers, deals, team members, etc.  And as you are hunting for these things, you're going to have to put in effort.  For example, you might find a great abandoned property where finding the owner may be very difficult.  You may need to search records, talk to neighbors, etc.  Be prepared to put in the hard work.

I would agree with what someone said above.  Wholesaling isn't investing.  It's working to generate cash.  As you do this, however, you will learn a lot about investing and hopefully accumulating cash.  Then, if you want, you can use that toward real estate investment.

Next, network network network.  You need to get to know your cash buyers.  Build a great list and get to know your buyers and what they want.  Along the way, you will find other people to add to your network.

And finally, learn learn learn.  You want to know how to do deals - how to market, how to make offers, how to write contracts, how to execute deals, etc.  I recommend the book, "If you can't wholesale after this... I've got nothing for you."  It's a good roadmap and a pretty easy read.

Good luck!

@Salman El Hamdouni,

One of the most important things you can do when it comes to building an REI career is to network with other investors and RE professionals. Network, network, network. Find your local REI meetups and find where they congregate online (like FB, for example).

@Salman El Hamdouni,

Find some local, successful wholesalers and tell them you would like to birddog for them.

@Engtavius Briskey-Chappell,

All good advice.  I also recommend the book, "If you can't wholesale after this... I've got nothing for you."  It's an easy read and a pretty comprehensive explanation of the whole process.