I am very new to the real estate investment industry. I keep hearing about wholesalers but don’t know where to find one. What do they do exactly. From what I have heard, they seem to be the mostly just on paper. Are they different than brokers? Is it legal nationwide? I love to wheel and deal and excel in research (except in this area I haven’t been successful) Is this an area I would be interested in as opposed to actual rehab and resell?
What real estate investing classes have you done? I suggest you at least do the Carlton sheets course for about $300 to get the parameters of how the business works. Follow his lead and take more training, ie other courses when you are able. www.east baywealthbuilders.com has some cheap workshops where you can network w/ others in your shoes.Norm
Norm is 100% right. I’m just getting started doing this, too, but what I’ve found is that what you’re doing is the right thing: Ask Questions!
What Wholesalers do is buy houses cheep (REO’s, Pre-Foreclosures, Foreclosure, FSBO’s, FRBO’s, Lease Opt’s, etc.) and either rent them, lease opt. them or (more often than not) sell them at around fair market value or flip the property to another investor.
The easiest way to find these guys is to simply call them! Well, you’re probably thinking, “How the heck do I get their phone numbers?” Simple! They post their phone numbers all over town on those “I/We buy houses” signs you see on every street corner. Another way to find them is in the paper in the “Homes For Sale (or rent) By Owner” section. That’s how I’ve been finding my leads. If that doesn’t work, you can do a search on Google for “Real Estate Investor Clubs” in your area and I’m sure you’ll find someone there who is a wholesaler. If you’re staight forward and honest with them, a lot of these guys and gals will be more than happy to help you to get started making money as a wholesaler yourself!
As far as it being legal in all 50 states: I can say that I haven’t run across a state where it isn’t legal. Ya see, buying and selling Real Estate is ALMOST like selling a toaster or any other personal property. Granted there are a few more steps and a little more red tape that you need to go through in buying & selling a house than having a garage sale, but the concept is pretty much the same. You probably already know that you don’t need a license to buy or sell real estate and you don’t need an agent. I’m just like a real estate agent in that fact that I’m an over-paid middle-man! One of the biggest differences is that I didn’t go to school to become an over-paid middle-man and most agents know more about real estate than I do.
Getting back to the subject: Once you find a good wholesaler/investor who is willing to work with you and train you in how to get started, I would suggest that you start in the paper!
(I learned this trick from Peter Conti and David Finkle)
Go to the library and get an old newspaper (maybe two or three months old) and make copies of the For Rent section. You can make copies at the library for maybe 10 cents a page. Take that home with you and start calling these people, asking them it their house is still for rent. A lot of people are gonna ask you where you got there information from. Be honest and tell them that you got it from the paper. Everytime you tell then that, they’re gonna say, “Wow, really? That must be an old paper…”
If the house is still for rent, have them tell you about it. They’re gonna tell you how long they’ve been trying to rent it and they’ll try to sell you on why it’s the greatest home on the planet and why you should’ve rented it from them yesterday. When they’ve finished, ask them if they are interested in seling it. If they say no, ask if they’ll do a lease option. If they still say no, thank them for their time. If they say Yes…they’ll sell, ask them, “If I can close in maybe the next five to seven days and pay all cash, how much money do you NEED (NOT WANT) to walk away with?” Once you get that number, tell them that you’ll take the information they’ve given you and talk it over with your “funding partner” and “see if we can take this extra mortgage payment (or “property” if you prefer) off your hands, fair enough?” Then, GET OFF THE PHONE, call your investor, and give them the details.
Now, that’s just one of MANY suggestion out there that you can use in order to get moving in this business (especially if you like to “wheel and deal”). Like I said before, I’m not an expert! This is just one of the things that I’ve done in getting started. There are as many different ways out there to get as there are people who are investing. I would again suggest the same thing that norm suggested. Get a good course, read it over and, most importantly, DO WHAT IT SAYS!!! Remember: It’s not the courses that don’t work! It’s the people who buy the courses that don’t work!
Thanks for taking the time to read my extremely long post!
Now, let’s go get this money!!!
great idea kwikness about the paper thing! im starting to bird dog right now, ill give it a shot.
Basically what wholesaling is is buying a house for a large discount, and selling ti for a smaller discount. Or you could just assign the contract to another investor.
If you want a good explanation of “Wholesale Flips” read the post in this forum titled “Need Help w/ Contract” (or somethin’ like that) and it has a top-to-bottom run-through of how to do a quick flip. Be sure that you put a “backdoor clause” in your contract!!! :o
If you follow that, and get an investor to hold your hand along the way, you’ll be flipping properties in no time flat!
Now, let’s go get this money!!! 8)