Hey Guys,
My name is Robert and I am new to the R.E Wholesale field. Im getting ready to start my R.E whole-selling endeavor after much due diligence and money spent. I have read everything and anything under the sun about R.E. wholesaling. One thing I haven’t been able to get many answers to is the pitfalls of R.E. Wholesaling and what to look out for. If you guys could please give me some advice it would be greatly appreciated.
Thanks,
the greatest pitfall of wholesaling is analysis paralysis… (getting ready to get ready) just jump out there and make it happen… when you come across something sticky let us know we’re all more than happy to help you out… :beer
Great point Chuck! Don’t overthink it all like I did. Just go out and start doing things. You will learn much more from “doing” than you will ever learn from any amount of books or teaching resources.
Hello All,
I am new to wholesaling too and I have some questions about the assignment contract and closing. Where can I find some good assignment contracts to use ? Also, once I have a contract on the property is it then my responsibility to do a title search and work with the title company to prepare for closing ? Or is that handled by the cash buyer ? If I am working with a realtor do they handle the closing process ? One other thing who pays the earnest money my cash buyer or me ? Sorry, for all the questions I just want to be sure I understand the process…BTW is it “realistic” to expect to close on your first deal in 30 days or less ? And is it possible to close 3 deals per month ?
If you have a good title company, they should be doing the title search and getting everything ready for closing. Also, you shouldn’t have to put down any earnest money (maybe $10 to make the contract legal.) Wholesaling is not about investing your own money. It’s about matching up a motivated seller with a buyer that wants the property that will bring in all the funds for it.
Also, it is possible to do a lot more than 3 deals per month. My mentor (Sean Terry) does about 15-20+ deals per month. It’s all about how willing you are to stick with it and how motivated you are to go out and do whatever it takes to build a successful wholesale business.
The great thing about wholesaling is that there is very little risk involved…so if you happen to mess up, those mistakes will be necessary lessons.
The most important thing is to get started!
Well said my friend…well said.
rbarsky, listen to Chuck. Very valuable advice, my friend. The biggest mistake I see is entering the deadly cycle of information collecting. Once in, it’s very difficult to get out. IMO, the more information you collect, the more confused you get and the more fearful you become. That all leads to more information collecting, and on, and on, and on.
elijah, ditch the assignment contract for a purchase contract. And, send all the contracts to the title company. They’ll do all the work for the closing. If they didn’t… nobody would be flipping houses.
Good advise, I recently listened to Sean Terry’s podcast after reading his book. It was pick together nicely great read.
Michelle
I couldn’t agree more to everybody. Experience should be your best teacher. The concept seems pretty simple but once you take action, you may feel overwhelmed but in the end if wholesaling is really for you and you are determine to succeed, it’ll all just happen.
You’ve read everything under the sun, but have you taken any action at all. Sounds like you are a little scared. Once you get your feet wet, you will be fine. You will see that the people that you talk to bleed the same blood as you and in actuality they need you. :cool
If you find someone to assign the contract to, do really have to go to a closing. Can’t they just pay you the difference between what you have it under contract for and what they have agreed to pay for that contract?
Whatever you do don’t procrastinate! The more you sit there and tell yourself you don’t know everything yet, you will never get started. Jump out there and get your feet wet. Don’t be afraid to mess up or fail, because those will be life lessons learned that you will grow and become a lot smarter from failing. To your success from “Mrflippahouse” aka “PrinceofWholesaling” :biggrin