Hi there! I wrote this article for anyone who may be new to REI (real estate investing). I myself am fairly new to the business. I started as a bird dog in early 2017 and have wholesaled several deals since then and it's currently Feb 2019. I'm gonna share a few tips that I wish I knew starting out that I couldn't find in many places.
- DON’T GO TO THE FREE SEMINAR!
Sure, you can go, BUT leave your wallet at home. Gain as much info as you can from the free part, do some networking if you can, maybe talk to the hosts a little. But if you REALLY can’t afford a $5000 or $10000 course, then please don’t go into debt to do so. The seminar is an emotional ride and unless you’re ready BEFORE you leave home to purchase a course, then please don’t buy the course that you aren’t committed to.
To be clear, My husband and I bought a course, but it was very misleading. IT was a “$0 Down Flipping” course. It required getting loans from lenders and possibly borrowing money from relatives. If you’re like me (I happened to be a 19 year old newly wed to a 20 year old who don’t really have an influx of wealthy family members) then those options were not options. We would have been much better off had we invested in a wholesaling course or started of bird dogging without getting the course at all. But everything is a learning experience.
2. DO NOT RELY ON A REALTOR
Realtors are great to add to your network, but you can’t base all of your leads on them. Realtors typically deal with the macro aspect of real estate, which is retail. They make money based on commissions. So the more expensive the property, the more money they make. An investment property is where they would make they least money versus what else is in the market. So they may send you their “trash” leads every once in a while, but don’t depend on a realtor (unless you start a business specifically targeting realtors who have “trash leads”).
3. GET TO KNOW YOUR MARKET “FIRST”
Understand 3 things about your market before getting started: buyers, sellers, and vendors.
Of course, you want to understand your buyers in retrospect. They are the ones paying you. So you can be a flipper and have to study the market. You have to see what homeowners are looking for in a home and provide that to them. If you wholesale, you have to know what your cash investors want to flip. You have to know the hotspots of where cash buyers want to purchase. As a bird dog, you must understand what your buyers need for lead generation. What gets them the best results and best ROI (return on investment).
Your sellers are where you make your money. People tend to think you make the money when someone buys from you when it’s the opposite. Your investment starts with your purchase. So if you’re a bird dog, wholesaler, or flipper, you must understand that your initial efforts are what will make you money in the end.
Vendors = free leads. The larger your network, the larger your lead base and reach. Vendors are people who may not be in your exact industry, but can connect people to your services. For example, a divorce lawyer can send you leads of couples who need to sell their assets. A mailman can send you a list of every vacant house that is on his route. Even if you’re a bird dog yourself, you can create an entire network of bird dog vendors which brings ease to your lead generation. Vendors make you have to “hunt” for leads LESS! They can also provide services for your buyers and clients. It’s a huge web of “How can I help you? I can’t help with that, but I know someone who can.” There are plenty of all these connections on Facebook in groups like Bird Dog Real Estate or Wholesaling Houses Elite.
I hope this helped! These are very key aspects of getting into REI and keeping your business in business.
