This is my first post, not only in 2011, but ever. I am a licensed real estate inspector in Houston and I want to start wholesale investing. Can anyone recommend step1, step 2…etc.
I’ll take a shot Erick - the first thing I recommend to people that are looking into wholesaling is to figure out how much time they can devote to wholesaling. We spend about 4 hours every day working in this business. That’s getting out our marketing, talking to buyers and sellers, getting deals under contract, getting them inspected and sold, etc. etc. It’s getting up every Saturday at 5 am to put up signs. It’s getting out driving the neighborhoods to find vacant houses. It’s hard work, but if you do it consistently (like every day), you can be successful at this business. But if someone wants to find a deal here and there and try and make a few extra bucks because it sounds easy and only work on it a couple hours here and there, it usually doesn’t work out to well.
Think of wholesaling as a job - a good job if you get good at it - but it’s a job and requires that level of time commitment.
So if you’ve made the commitment to block out time every day to work at this business and what specific hours those are and what you will do for each of those hours - the next thing you need to do is figure out what part of town you want to wholesale in. The way we do that is to go to Listsource.com and find out the number of absentee owner PURCHASES in the last 6 months by zip code. You’re not going to actually get a list, so it doesn’t cost anything to do this research. You want to find the areas where there are lots of activity - generally these will be in the lower to middle class areas with lots of rentals. In this market, our main source of buyers is landlords.
Those are the first 2 steps I recommend - let me know if you would like more…
erick, you’re on the right track. The two best strategies for the beginning investor are wholesaling and lease options. In fact, you can get started quickly and safely if you have any know how with options.
Thanks for the info, this will help. I went to Listsource.com and it seems the only way to get the info is the free trial or subscription, correct? Cincyben’s response indicated “doesn’t cost anything to do this research”. I’m not against paying for sevices that will help…but, if you can get it for free, why not?
No need for a subscription - I don’t even have a subscription and I buy individual lists from them every couple of months. But you aren’t actually buying a list this time, you are just looking for the number of AO purchases per zip code in the past 6 months. Play around with it a little and I think you’ll figure it out. Let me know if you have any trouble getting it to work for you.
Cincyben , you have very good information, I am a newbie as well attempting to wholesale in georgia, would you have any further steps to share ? I have basically an 8 hr day to commit 4 times a week but other thn putting out signs and driving around, I’m stuck. I will however try the online route to find a good area to start marketing. Any other tips or steps would be greatly appreciated sir.
I agree, went back to Listsource and got it. Any other tips??