Is wholesale the way to go for first time investors? What is even better than flipping contracts anyway, especially for the first timers? Some may say it doesn’t cost anything to wholesale/assigning contracts. Nothing can be totally free. There has to be some costs involved somewhere even if it is for advertisement like those We Buy Houses signs posted around the community. It may be more effective to spend money on advertisement to get a better response to your wholesale business. How much money should a person invest in advertisement? That is if it is really necessary.
Hi,
I actually think "Assignment of Contract" is the easiest and most reasonable for a new investor to start, although you will need a little something for earnest money you can set the contract to agree to a little earnest money with an increase after removing contingencies.
You of course need to build a retail and investor buyers list so you can specifically look for properties your buyers actually want to buy, make sure there approved to purchase and have enough cash to pay the assignment fee’s, closing cost’s and down payment.
This is probable one of the easiest methods for a new first time investor!
GR
How much earnest money needs to be be put down? And who sets the amount for the earnest fee? Right now I’m just bird dogging. I’m locating leads for my buyer, but would like to get into wholesaling. The tough part for me is negotiating the deals between buyers and sellers. I get nervous thinking what I’m suposse to say to these people when I am out there all alone to do the transactions
Pardon the language but guess what…at some point you have to just grab your ballz and just do it…meaning eventually you gotta just take action. It’s the only way you’ll REALLY learn anything. You’ll suck at first and get better. The answer is either blast through the fear or get a job. The funny thing you’ll find is after you’ve done it a few times you’ll no longer be scared (this is true for anything that you’re afraid of).
Or perhaps you should ask yourself if you’re really cut out for this…I say this because of the general tone of your questions, comments, and actions (buying the Rich Dad thing while everyone told you not to, after saying you don’t have the money to even buy a book). Business is no place for anyone who isn’t mentally tough and able to overcome adversity, and trust me you ain’t seen nothing yet. This biz is not for everyone…being in business period isn’t for everyone…there’s no shame in that, and I’m not trying to discourage you, but just be real with yourself, that’s all I’m saying…
“Timidity is never impressive and rarely rewarded”
To address your other questions, I gotta ask: have you acted on the advice several experienced people gave you in the other 2 or 3 threads you started? For example, did you ever buy a book? Did you ever go to a REIA meeting? Did you ever download Sean Terry’s ebook for free and/or listen to his podcasts at flip2freedom.com?
I’ll help you even further…here’s an entire real estate book that is available completely for free online: http://tinyurl.com/6bc5doh Ron Legrand is the guy I learned from, and he’s who essentially invented most of the industry-standard stuff us investors use daily. If you read this book and follow it you’ll be well equipped to start doing deals, but if you don’t read it, or do something towards getting a handle on this biz, I don’t know if anyone here can help you!
I bought an e manual some time ago from this dude>> http://flop2flipnation.com/a while back. I look through that, which is good but I felt something is missing and I and I can’t quite point it out. I have been contacting one of the head people at my local REIA getting specific information about wholesaling and what other real estate investment opportunities would be right for a new investor like me. I was told by this person at the local REIA that wholesale may not be a good idea because of all the competition. Then I was told that my best option would be to pay 600 bucks for some class, which is not available until like August of this year.
Didn’t one of your fellow posters give warning last time to stay away from Legrand? You may know who I’m talking about who said that.
Yeah but to each his/her own. I like Legrand because he’s the real deal and he’s direct and blunt (no fluff) which appeals to me. He’s old-school but then again he’s flipped like close to 2,000 houses and still does so to this day, so he clearly knows what he’s doing. Besides, that book is free.
Read it, rgo out and take action, fugg up, get better, then make money!
I read that free version of Legrand’s book you sent in that link. It is good but has some does no justice since it does not have all the pages in the book. I 'll just see what it is covered in the regular book. The local buyer I am bird dogging for also recommends Legrand’s book. I hope whatever the missing pages are in the free version tells me everything I need to know about wholesale in the regular version.
There are some costs involved, but minimal. Nice bandit signs in strategic places (I like to put mine for wholesale properties by the exit from Home Depot parking lot :biggrin), ads on Craigslist and Postlets (free) and calling around wholesalers (also free) have given me many buyers for wholesale properties.
Wholesaling properties is a great niche, especially for new investors, because it can build up your cash reserve quickly before you get into bigger projects. However due diligence is necessary and make sure you get a mentor who has done it before and is willing to help. Books and courses are good information, but you need a “live” person to guide you along the way and avoid costly mistakes.
All the reasons why I want to wholesale. Would I need permission to post bandit signs at like say a Lowe’s Store right at the entrance area? Anymore good places to post signs? The ones I seen are posted on telephone poles in a busy area. I would need it somewhere where people are able to stop and look rather than speeding by through an intersection.
Wholesaling is a great way to get started. You will learn the basic fundamentals of real estate such as finding and evaluating deals, marketing and finding buyers, negotiating and closing deals. Another great way is to find a mentor and learn by doing.