How To Get Started Wholesaling Part 1
On this podcast episode I discuss how to get started wholesaling real estate.
This is part one which is basically an introduction to wholesaling. I talk about the 3 main components of wholesaling which are:
1. Finding Houses To Flip To Investors
2. Finding Cash Buyers To Buy These Houses
3. Finding The Money To Fund These Flips
The above 3 items are the essence of the foundation of wholesaling real estate. I find that far too many beginners that are new to wholesaling, spend way too much time focusing on things that don't make them any money. For example: setting up their business, opening LLC's, setting up checking accounts, creating web sites and business cards, mailing postcards, setting up CRM's and phone systems etc.
While you will need all of the above in order to be a full time real estate investor, if you are a beginner, spending money without making money is a recipe for disaster.
The number one most important criteria for a business to succeed is cash flow. If you spend 6 months or a year and have only expenses going out and no income coming in then you will constantly be losing money and will probably quit at some point. And that is exactly what 95% (or more) of new investors do. And that makes it easier for the seasoned investors that stick around to scoop up all of the deals.
Have you ever wondered why there are only a handful of wholesalers making most of the money in each market? It's because the ones that stay start making a lot of money and the more they make the more they can spend on marketing, advertising and lead generation.
What I want you to spend your first few months focusing on, is how to find houses and how to evaluate what these houses are worth. If you can do this well, then there are many cash investors (like me) that would be very happy to buy these houses from you for a fee. I used the example in the podcast of if you could find houses at 50 cents on the dollar and sell them to me at 60 cents on the dollar I would buy every house you showed me. The trick is finding those houses - not finding the cash or the cash buyer. There is no shortage of cash and there is no shortage of cash buyers. What everyone is looking for is a great wholesale deal. So focus on learning how to find deals.
Once you find deals and flip them to cash investors you will start making money. When you start making a profit, you can deploy some of that profit into setting up web sites, marketing, advertising and lead generation. And then you too will be one of the contenders in your market. Your biggest challenge is not quitting before that happens. And the easiest way to make sure you don't quit is by focusing on profit first. Focus on making some money flipping a house and the rest will fall into place.
The foundation of wholesaling (and real estate) is learning how to find a good deal, and knowing how to evaluate what you should be offering on that deal. If you know how to do this then you can be making offers all day.
And the more offers you make, the more deals you will get. The more deals you get, the more deals you will wholesale.
Enjoy the podcast.
This is part one which is basically an introduction to wholesaling. I talk about the 3 main components of wholesaling which are:
1. Finding Houses To Flip To Investors
2. Finding Cash Buyers To Buy These Houses
3. Finding The Money To Fund These Flips
The above 3 items are the essence of the foundation of wholesaling real estate. I find that far too many beginners that are new to wholesaling, spend way too much time focusing on things that don't make them any money. For example: setting up their business, opening LLC's, setting up checking accounts, creating web sites and business cards, mailing postcards, setting up CRM's and phone systems etc.
While you will need all of the above in order to be a full time real estate investor, if you are a beginner, spending money without making money is a recipe for disaster.
The number one most important criteria for a business to succeed is cash flow. If you spend 6 months or a year and have only expenses going out and no income coming in then you will constantly be losing money and will probably quit at some point. And that is exactly what 95% (or more) of new investors do. And that makes it easier for the seasoned investors that stick around to scoop up all of the deals.
Have you ever wondered why there are only a handful of wholesalers making most of the money in each market? It's because the ones that stay start making a lot of money and the more they make the more they can spend on marketing, advertising and lead generation.
What I want you to spend your first few months focusing on, is how to find houses and how to evaluate what these houses are worth. If you can do this well, then there are many cash investors (like me) that would be very happy to buy these houses from you for a fee. I used the example in the podcast of if you could find houses at 50 cents on the dollar and sell them to me at 60 cents on the dollar I would buy every house you showed me. The trick is finding those houses - not finding the cash or the cash buyer. There is no shortage of cash and there is no shortage of cash buyers. What everyone is looking for is a great wholesale deal. So focus on learning how to find deals.
Once you find deals and flip them to cash investors you will start making money. When you start making a profit, you can deploy some of that profit into setting up web sites, marketing, advertising and lead generation. And then you too will be one of the contenders in your market. Your biggest challenge is not quitting before that happens. And the easiest way to make sure you don't quit is by focusing on profit first. Focus on making some money flipping a house and the rest will fall into place.
The foundation of wholesaling (and real estate) is learning how to find a good deal, and knowing how to evaluate what you should be offering on that deal. If you know how to do this then you can be making offers all day.
And the more offers you make, the more deals you will get. The more deals you get, the more deals you will wholesale.
Enjoy the podcast.
Activity