Hey im new to this site and im very excited, im only 18 but im very interested in real estate and i became even more interested when i heard about wholesaling. I understand the basics of what needs to be done but i still want some more advice and guidance before i actually get involved. What can i do when im starting from scratch, i know no one involved in real estate or anything involved with wholesaling so im kinda alone on this one but im still very determined to get out there and start making some moves. If you have any tips or anything i should know to begin…please dont hesitate. This is a great site.
There are tons of information on the internet. This REIClub is loaded with excellent free information. Also just Google “wholesaling real estate” and you will have weeks of reading to go through.
Another very interesting area is going to You Tube and search under “wholesaling real estate”.
A word of caution particuarly for someone as young and probably trusting as you is that there are some very large “sharks” swimming around who want nothing more than to take your money by selling you their “very best real estate course”. Be very careful!
Finally I am very very impressed that someone as young as you is actually looking at real estate investing. Wow! At your age the power of compounding interest and appreciation of real estate will certainly make you a millionaire if you stick with it.
Thanks, the you tube was a big help…theres really informative videos on there.
I have a couple more questions. I’m more interested in probate wholesaling…would that be a good part of real estate to start up in, and if not what do you suggest is?
And can u get away with a $10 deposit at the time of signing with the seller…i saw this somewhere and i was just curious.
Real estate investing is definitely the way to go. As young as you are you can do very, very well with the proper preparations. I’d recommend you take a three track approach:
Education – Get a solid real estate investing education so you know exactly what you’re getting into. Your education will provide the foundation on which your future will depend, so don’t scrimp on this point. There are some excellent educational resources out there as well as some self-professed gurus promising to make you an overnight investing sensation. Before you spend a lot of money on anyone’s course, program, seminar, or whatever, thoroughly check them out. Make sure they have invested and had success and that they’re not just a professional educator!
Explore several different investing areas before settling on just one – At this stage in your career you’ve got more questions than answers. It’s important that you get them answered, but it’s also important that you explore a variety of investing “categories”. You may not think you’re interested in wholesaling, rehabbing, abandoned properties, probates, etc., but once you learn more you may wake up one morning with a passion for an area you hadn’t considered.
Work with a good coach/mentor – A good investing coach or mentor can put you miles ahead of where you are in no time at all. You’ll learn a variety of investing techniques and a host of things to avoid. Because a mentor has already been there & done that, you can gain the benefit of his/her knowledge without the headaches and expense. Because investing mistakes can be costly you might decide that the advice is worth every penny of what mentoring might cost.
Eddie, good luck in getting your investing career off the ground. I hope you achieve all of your dreams.
Education is extremely important…But, remember you want to be a real estate investor, not a real estate researcher…Don’t get caught in the trap of “getting ready to get ready”
Wholesaling when done correctly is a no risk activity so get your feet wet a little then jump in.
Wholesaling is essentially
Find Buyers
Find out what buyers want.
Find homes that meet buyers needs
Put home under contract with escape clause
Get buyer through the home.
If they like it then assign, double close, or transfer the deal.
I am new in this industry and in this forum as well. And asking help from people in this forum, allows me to gain knowledge about Real Estate. Good luck!
Congratulations on your decision to get involved in Real Estate. I don’t know your financial situation, but wholesaling is the best way to get started with a small bank roll. My company wholesales about 10 properties per month and we purchase about 2 for our rental portfolio. The hardest thing to learn about wholesaling is not to try to find deals first. Eirc had the process correct. Find a few CASH buyers then find out exactly what they want (area, property type, construction, price, etc.) Then go look for exactly that.
A few small pieces of advice . . .
Work with cash buyers FIRST. After you are working with multiple deals per month, then branch out to include hard money buyers. When I got started, I ran after the hard money guys and lost a lot of deals because the financing fell through.
Demand a large deposit (hence the cash buyer). I require a non-refundable deposit of $5000 on every property placed with the title company that I select. This ensures that the buyer has skin in the game. Initially this was a difficult step. I had a lot of resistence. But after I closed a few deals with people, it just became routine. Now when I work with a new buyer that balks, I tell them they have to go elsewhere. The point is, it makes people close.
Market!!! Wholesaling is not a real estate business. People will disagree, but its true. The more leads you have, the more offers you make. The more offers you make, the more contracts you write. The more contracts you write, the more closings you have. Closings gets you paid, so market.
This is a great forum for information and feedback. But don’t get stuck trying to learn everything before you get started. I promise you will make mistakes and you will probably loose money. I lost $220,000 my first year in the business. It’s been 3 years and I’ve more than made up for those mistakes. Whatever you do, pick yourself up and keep moving.