how do i get started in wholesaling? frank B
You need to study methods that are published in books, tapes, courses, and articles, all of which you can obtain on this site. While you are doing this, you need to begin networking and developing relationships with wholesale buyers so that you have an exit strategy when you finally put together a deal.
Don’t expect to get a magic formula on this forum in one or two paragraphs and become a millionaire. This business takes massive action and knowledge.
I would say: -
- Do some advertising/networking (local investment club is a good start) to get a feel for what types of properties investors are looking for. Start building a list of potential buyers.
- Really study you target area. Figure out what kind of properties your buyers are looking for and talk with local realtors to get an idea of the types of properties that have been selling the most, price bands etc.
- Do some homework on figuring repairs. Even though you will not be doing repairs, you have to account for them to evaluate a potential deal. Tip: an afternoon at local home imporvement store, with a notebook and pen, will give you a good idea on the basics: doors, windows, plumbing, kitchen etc.
- Drive around and look for properties in your target area.
- Team up with a good realtor to get more leads.
- Look at lots of properties - evaluate potential deals.
- Once you find a good deal, make an offer to get it under contract, and then let ALL your buyers know about it.
I think I have covered most of the steps. Hope this helps!
Good posts so far.
You’ll first want to find the neighborhood that you’ll find the best deals.
these are really mid ranged type areas.
From there, you will drive the neighborhoods and locate owners through the internet, tax records etc.
You’ll need to learn how to estimate repairs. You can do this via going to your home improvement store and price items and doubling the price to get the labor amount.
You should also take an inspections and contracts class as well to lock down a deal and protect it.
There’s a lot to know, but the main thing is to get started. Go to REI Clubs and talk with your rehabbers and other investors. What type of deals are they looking for? Waht kind of discount? etc.
From there, go out and find these and lock them up via contract.
Remember, with wholesaling you’re minimizing risk so you don’t have to be perfect at this stage.
A typical property flip involves only one investor who obtains a property at below market value that needs major repair or where a very motivated owner is selling for reasons such as a failure to make mortgage payments. This investor makes the necessary repairs and then sells the property at or near to market value and makes a profit. This selling price must be higher than what the investor originally paid for the property plus all repairs made.
A wholesale occurs when a wholesale investor goes into contract to purchase a distressed property below market value and then makes a profit by reselling it for a higher price to a property rehabber/retailer.
I agree with everything on the posts so far.
I would also like to add learn marketing!!! seriously. Especially in the market that we are in where credit is pretty much dried up for the average investor. If you are a master marketer
you will get a steady flow of leads. Leads fuels every business without them you are out of business. If you can master marketing you can turn on or off your marketing machine whenever you want to and there will be no limit to how much you can make if you so desire!
Good post yoda.
That’s exactly right. Many people go into REI backwards.
They try and learn all the sexy techniques to buy houses at 30% of market value and how to get cash flow each month with an ROI of 500% but fail to get a seller to call them!
Crazy but true.
The hardest part of this business is finding a good deal!
If you can find the deal, money will come. Believe me.
Start in your own backyard and locate solid mid ranged neighborhoods and drive them looking for vacant/messed up houses. Mail to the owners and see the calls coming in.
Network with attorneys and realtors. GEt your biz cards printed up and give them out like crazy.