Hey guys, I’m not new to the idea of wholesaling but I’m new to putting a plan in action.
I’ve researched wholesaling for about 3 weeks fervently (spending about 3-5 hours a day) and have been compounding lots of information, but I’m stuck right now, let me explain.
I’m 20 years old and I work at a supermarket. I make barely enough money to cover the bills (some left over ± 150 at the end of the month) and live in a poor family. I’ve been raised poor and have this burning passionate desire to become rich to help all of those I love and to help those who have helped me achieve my goals. I want to prove to the world that a simple person like me can truly make it out there without the unnecessary debt of schooling. Long story short, I read RDPD and about 7 of the books in line and have determined Real Estate as my vehicle.
Sorry for rambling, I just don’t have many people to talk to about this.
So I have done lots of research on wholesaling and have successfully compounded a buyer list but my only problem is marketing! In my county (Westchester County) there plenty of “We Buy Houses” signs and ads in the papers so I feel like I wouldn’t be able to make even one deal out here. I just bought a bunch of business cards with the “We buy houses” slogan and have been contemplating bandit signs but I have NO CAR to drive around putting them up. I want to do direct mailing but I don’t know how to get started on that. I also want to wholesale out of state/county but how do I do that without actually going to that state/county (no car/no money for plane tickets)?
When it comes down to it, this is where I am:
No motivated sellers/marketing tools at present
I have all the contracts needed (still need to have it looked over by a title agent ----can they do that?)
I have a buyer list
I have the BURNING PASSION. I must succeed and I know I can! Please save me from paralysis analysis and give me some advice!
I don’t know of any REI clubs (nearby) that I can go to that I can actually afford (I hate saying that) on my wage.
I’m sorry for such a long thread, I just could really use some help and don’t have the money at the moment to hire a mentor (which I want to because I want to get into commercial leasing, etc.)
My goal right now:
Transact enough contracts to hire a mentor
Mentor will give me advice into how to start renting/leasing and move onto Apartment + commercial
THANK YOU ALL for any advice you can spare. It would really help and I’m sure karma would greatly reward you (as well as I hopefully one day).
yes you can start with less than 10k thats why people choose wholesaling to start out because they have no capital… as far as closing costs and all that you dont have to have money for that…its the beauty of wholesaling which is assigning your contract to a buyer for a fee to take your place in the deal so you dont have to pay anything… there are alot of free avenues to take like craigslist,backpage etc…
Thank you Chuck. That’s why, no offense Real Estate Seller, I figured you wouldn’t need THAT much more capital above a marketing budget. I’m actually meeting with my girlfriend’s mother who is a marketing director at a marketing and research firm to see if I can get any tips. I’ll keep you guys posted on success!
If you wholesale like Chuck said you don’t need any funds. Just don’t price yourself out off the market or get greed-ed on the first deal. Just remember for each wholesaler charging $5000 there are 10 that will charge $2500.
See but that’s the thing, I’m not going to charge huge assignment fees. My unfair advantage right now is that my expenses total little over $600 a month, so truthfully one assignment fee can cover my expenses and the rest of them can be saved towards my mentor. So if I do 10 in total in a span of 1-3 months, that’s about ~$7000 that I have towards my mentor. I love it!
I am also new to this, so I am throwing out the question to those who have been doing this longer than I have: Does 10 wholesale deals in a span of 1 to 3 months seem overly optimistic? How many mail pieces would you have to mail out a month to get that kind of result? I was listening to a podcast recently where the wholesaler said he mails about 5000 postcards a month to do 1 - 2 deals a month. Any thoughts on how much marketing a brand new wholesaler would have to do in his first month to get 10 deals over the next 3 months?
QuintanillaJon, I am not trying to be facetious or discouraging, just trying to get an idea of what a realistic expectation would be when just starting out.
Hope all this is helpful
Real estate is about using leverage. It is about your mind set. You are not a real estate investor. You are a an entrepreneur. A deal maker. You can do deals and get paid with little money. Do options for example. sell to your buyers and pocket the deal money. Find buyers cash buyers at real estate auctions. Leave them your business card. that is one way.
Start now get the momentum going. The thing is it start. Redbird, if you change the way you look at thingsm the things you look at change,. Good. You can do very well. Stay hungry no matter what.
Here’s the deal. Investing is finding sellers and buyers and putting them together. So you need to know who you are targeting and why they would your target audience contact you and approach your marketing in that manner. You don’t need any money to start off as you can assign your rights, referral it out or locate people who will fund your deal based on the specifics.
Hey, you might just become a real estate agent and avoid all the headaches like I did.
Hey Wholesaling Beginner, Find some fixers, negotiate a low price with the owners, give them $10 for the contract consideration fee. Advertise your house on Craig’s List and contact the we buy houses investors and assign your contract to them for $2-20K I just did a house, all I spent was the $10. and me and my bird dog are splitting the $15,500 assignment fee. The buyer pays closing costs, title fees etc. I’ve done some subject to deals and my buyers brought all money to the deal, I didnt even spend a dime on those deals. Same with the lease option deals, the buyers bring in all the money, costing you nothing except that $10 CCF. Also try options, find a distressed seller, get the house on contract for $10 and sell it for $20K more. Why in the heck, wud u want to stay in that job and save your money? If u see a lot of we buy houses signs thats OK, they wudnt be advertising if they cudnt find deals. There are deals all around. Call those people, make friends with them. Find some deals for them. We will all make money.