Build an investor list first and then get a list of people who took out teaser loans ...
Instead of being an ambulance chasing leech like most of these foreclosure investors out there. You’ll have first dibs on those houses.
Wholesale Real Estate
- Thread starter he_is_I
- Start date
Build an investor list first and then get a list of people who took out teaser loans ...
Instead of being an ambulance chasing leech like most of these foreclosure investors out there. You’ll have first dibs on those houses.
HacksawJimThuggin
All Star
You don't really need much capital to start wholesaling. You probably need the following:
- Set up an LLC with the state. Almost all states let you do this online. Typical cost is around $250
- Create some kind of logo for marketing or branding purposes. I suggest going to Fiverr and having a graphic designer make you something simple for the low
- Deciding what your strategy will be as far as finding properties. This may involve driving around looking for abandoned/distressed properties to make offers on, online research to look into foreclosures or auction sales, traditional marketing (I'm sure you've seen sign posts around that say "we buy houses cash!"), or online marketing. My advice would be to try to make dip into all of these things to see what works best for you.
More than money, it takes time. I know it seems easy, but real estate investing is a skill just like anything else. You have to do a ton of learning before you're good at it. You need to know the market in your area so you can assess deals, and know how much you need to price a property at to maximize your profit. All this doesn't come overnight. shyt, I look back on when I first got started and I made a million mistakes just because I didn't know any better. And I'm a real estate attorney so I already had a background in it, imagine someone coming in without knowing much.
I think before you get started, just watch videos on Youtube about wholesaling and the different techniques that people use successfully. Also, check out meetup.com and start attending networking events and seminars in your area that focus on real estate investing. There's typically people there that are willing to help and it's also a great place to build your network. It's necessary to have a network to be good at this. Even if you're successful in getting a property under contract, you still need someone to flip it to. Those are typically going to be other real estate investors, so you need to start knowing some who you can offer properties to. But really just entrench yourself in it and educate yourself as much as possible. Once you know what to do, it's just a matter of execution.
Definitely drive around looking for vacant houses and either look them up on peoplefinder or whitepages or you can go to fiverr and have someone skip trace them for as little as $5-10 and call them.
Go to flip2freedom.com and download Sean Terry's free ebook. That's all you need.
Amerikan Melanin
Veteran
Any dudes flipping tax liens?
My man
Scientific
Bacdafucup
I've wanted to dabble in real estate, but the biggest thing that makes me worried has been how fast the market has appreciated the last 3 years. Since you're in a very hot real estate market do you think we're starting to hit the apex of a bubble? I'm in TX, where the market is so hot, you're competing with every joe shmuck and foreign investor to buy low. Auction prices end up being on par with MLS listings if not more most of the time, and I know a few people who have tapped out of flipping now that margins are so low.
Its been a bull market the last 8 years, and real estate may as well be traded as a commodoity how it almost directly correlates with the market and with foreign ivestors using it to park cash. Maybe analysis paralysis is my probelm, and I over think it.
HacksawJimThuggin
All Star
Absolutely. South Florida is a tough ass market right now because of the reasons you've mentioned. There's not the same money to be made simply because there's just so many more people doing it. Also here, and I'm sure the case is the same in Texas, because there are so many immigrants willing to work for cheap, the renovation costs are low, which means investors are willing to buy at a higher price. Like you said, often times there's such little profit in a deal because there's SO many investors out there willing to jump through hoops to make a little bit of money on a flip, so you're competing against ultra competitive offers to the point where you might just let the majority of deals go because it's not worth your time. So really, if you can get these distressed and abandoned properly below value under contract and be wholesaling them to the investors, that's really where you can still make a good amount and not have to do any work.
South Florida is all but tapped out because the banks are not really backlogged as far as foreclosure proceedings any more. They've basically already taken back almost all of the properties that people were defaulting on during the crash, so it's not open season like that any more. A lot of my clients are moving their focus up towards Jacksonville and the Tampa area because there's opportunity up that way.
Every market is different, but the reason it's thriving down here right now is two-fold: influx of foreign investors; predominantly Venezuelan, Colombia, Russian, and Chinese... and also, they're running out of land to build (to the east is the ocean and to our west is the everglades), so there's not many new construction projects going up, which has resulted in a lack of inventory. Because there's more Buyers than Sellers, Buyers are forced to overpay for properties, which leads to property values rising. It's great for my particular business, so I'm certainly happy about it. The only thing I think that could essentially "fix" such is the interest rates rising to a level where it would start discouraging a good number of current renters to consider home ownership, thus leveling out the Buyer vs. Seller discrepancy.
There is a concept I call the "market of unawares"... which is why I recommend looking into
people with teaser loans. Why ? Because these folks are the ones who'll most likely
get crushed when interest rates rise again.
You can gather data showing the booms and busts in your market and use sequential mailing
to market your offer.
It's a pre-emptive strategy and if done right ... your deal flow will be damn near automatic
but you have learn other skills like cold calling/handling objections and writing copy so
you can create marketing campaigns instead of running around like a headless chicken
chasing foreclosures.
I have another method that's more about getting entire houses donated as tax-write offs
for charitable causes but I'll probably never share that here.
I've been interested in this.
OfTheCross
Veteran
Up this thread I am starting this month in PA.
MasterOfAllHeSurveyz
All Star
My advice. Know your market, know how to calculate ARV (after repair value) and do your comps. There's nothing worse than getting a contract signed with a seller and you can't get a buyer to bite because it's a bad deal (overpriced).
I gleaned a little from everyone below and I actually paid for these courses except for Jesse and Tidy (downloaded YouTube videos).
Although Zuber's course is unrelated to wholesaling, his focus on knowing your market to find great deals is the foundation for everything. Subscribe to his YouTube channel like yesterday.
I gleaned a little from everyone below and I actually paid for these courses except for Jesse and Tidy (downloaded YouTube videos).
Although Zuber's course is unrelated to wholesaling, his focus on knowing your market to find great deals is the foundation for everything. Subscribe to his YouTube channel like yesterday.
UncleTomFord15
Veteran
Have you started yet? I'm gonna start in PA in a few months once I get my car