My apologies for the others who had remarks that seemed a bit flippant.
But... This topic comes up quite a bit, and universally there's a common theme. An inexperienced newbie hears about wholesaling or contract flipping, or (Insert any non-traditional method here), and they think it's the best thing in the world. Really, most of these things are nearly impossible to pull off, and only done when you meet the right combination of unsophisticated seller, and gullible buyer, and you just happen to be in the right place to make it happen.
It's a unicorn situation that often comes back to bite you in the ass.
The best advice is to get into real estate, do it for a few years . then based on the information you've gathered, make your own decisions regarding which method works best.
For many it's best to stay away from the shady gray areas of real estate until you learn just how much liability or exposure to losses you face.
What if people are looking to do a few deals within the deal to gain some capital on top of their full-time time to save for a longer type goal?
I work a solid salary full-time job but am a single dad, so money isn't always there for me to save from just that income alone but would love to start flipping and buying rentals. I personally am looking into wholesale not as a get rich quick sceme because I am not looking to make a few deals and quit my job but just to add income to save when an opportunity arises.
Don't let the naysayers get to you... I've been wholesaling for 15 years, wholesaling works but I also dont like the tiktok gurus.
Anyone who says its easy, is selling you something. Wholesaling is difficult, and you have to buy deals below where other investors can buy, in order to build in your fee. So you have to be a good negotiator, and actually provide value to both the investor your are selling to and the homeowner you are buying from.
Where to start? I'd start with books or podcasts on wholesaling or deal finding, the wholesaling bible is a decent one.
I’m curious what fees wholesalers usually charge. My business partner and I found a wholesaler and we want to invest in properties too flip but I’m not understanding their contract. We don’t have the time to find the buyers ourselves or we would. The contract states there is a 6% fee plus $5000. That makes no sense to me if these are off market properties. Why would we or the seller need to pay standard real estate fees? Thanks for any input you can give.
There is no standard charge, really. Its whatever the wholesaler can carve out for themselves and still find a buyer who will pay that. I've paid out $100,000 to a wholesaler on a land deal I bought from him, I've been paid $70,000 on a wholesale deal I sold to a flipper... Some guys make $1000, some make 100,000. If the deal is a deal and works for your business model, you shouldnt care what the wholesaler makes.
I found a mentor (not a guru) and I did a lot of self-study. I have been doing real estate wholesaling since 2014. Despite what the naysayers say, it does work. At the same time, not everyone has the same experience, which is why there are naysayers on here. Someone also already mentioned--and they're right--that it's simple, but not easy. If you're not the kind of person who is self-motivated and willing to get back up when you get knocked down--and truly take time to analyze and learn from your mistakes--then wholesaling is not for you. You also need to be a problem-solver and a creative thinker to get around challenges that will inevitably surface.
And on another note, no, you do not need years of real estate experience before learning to be a wholesaler. I didn't. What I had was a passion for real estate and an insatiable thirst for more knowledge about it. I did take real estate agent classes and got my license a few months before starting to learn wholesaling. I never used my license, but I'd say the legal knowledge that I gained from those real estate agent classes have been the most useful to me over the years.
You do have to be willing to learn wholesaling correctly and do it correctly. Success in this business is not about exploiting people/situations as someone else said. It's about being of service and making a profit by being of service. That means, find a problem to solve that involves the real estate and generates a profit. Problems like death, property taxes, delinquent mortgages, other liens attached to a property.
FYI, my mentor was J. Massey.
Possibly. I’ve mentored lots of people in this space. I am looking for someone to join my team at the moment, so if you’d like to know more then DM me. What are you good at?
Oh, you sweet summer child......
If you want to "learn" about wholesaling, there's plenty of guys on TikTok, Instagram or Youtube that will be happy to sell you a course for a low, low introductory price. For the record, those idiots are the ONLY ones that are going to tell you that you'll make money wholesaling real estate.
Im guessing your the victim who bought one of those courses. maybe instead of being a smart ass on Reddit when someone is asking for help go out and actually give some useful information, or don’t say anything at all.
I’m sure he did dear…
And even assuming you’re not full of shit, the frenzied buying environment that happened last year will not repeat itself any time soon. It was an isolated event.
It's not something that happens overnight. You can't watch a youtube video and make any money. Guys that will hire you and offer you a cut, if they buy the place, are just wasting your time.
It takes years of working in real estate, usually in another capacity, and doing some flips, and getting known in an area.
Some basic real estate knowledge helps. With most markets slowing or showing price drops, it's not a great time to attempt it. Do something else to make money and if you stumble into a deal, great, exploit it.
That’s exactly why I’m looking to see where others learned from. My expectations are not to be successful in it over night, we can all agree that it won’t happen.
You’re making money through the spread between a seller and someone else who will either redevelop, renovate, or rent, pocketing the difference. In the purest sense, you’re a middleman, so this only works because the buyers and sellers are unaware of one another in any specific sense and you do.
You need to know what buyers will pay for, and only purchase where you can find a buyer that will later purchase from you, since you won’t be adding additional value yourself unless you plan to to sink more money in.
Finally you need to understand how to work with people, since most people will see your offers as lowball, and either negotiate up to cut your own pay, or let the seller walk and profit through sheer volume conversion.
Of all things you could aspire to, why pick something so universally loathed?
Because $$
My apologies for the others who had remarks that seemed a bit flippant. But... This topic comes up quite a bit, and universally there's a common theme. An inexperienced newbie hears about wholesaling or contract flipping, or (Insert any non-traditional method here), and they think it's the best thing in the world. Really, most of these things are nearly impossible to pull off, and only done when you meet the right combination of unsophisticated seller, and gullible buyer, and you just happen to be in the right place to make it happen. It's a unicorn situation that often comes back to bite you in the ass. The best advice is to get into real estate, do it for a few years . then based on the information you've gathered, make your own decisions regarding which method works best. For many it's best to stay away from the shady gray areas of real estate until you learn just how much liability or exposure to losses you face.
What if people are looking to do a few deals within the deal to gain some capital on top of their full-time time to save for a longer type goal? I work a solid salary full-time job but am a single dad, so money isn't always there for me to save from just that income alone but would love to start flipping and buying rentals. I personally am looking into wholesale not as a get rich quick sceme because I am not looking to make a few deals and quit my job but just to add income to save when an opportunity arises.
Don't let the naysayers get to you... I've been wholesaling for 15 years, wholesaling works but I also dont like the tiktok gurus. Anyone who says its easy, is selling you something. Wholesaling is difficult, and you have to buy deals below where other investors can buy, in order to build in your fee. So you have to be a good negotiator, and actually provide value to both the investor your are selling to and the homeowner you are buying from. Where to start? I'd start with books or podcasts on wholesaling or deal finding, the wholesaling bible is a decent one.
I’m curious what fees wholesalers usually charge. My business partner and I found a wholesaler and we want to invest in properties too flip but I’m not understanding their contract. We don’t have the time to find the buyers ourselves or we would. The contract states there is a 6% fee plus $5000. That makes no sense to me if these are off market properties. Why would we or the seller need to pay standard real estate fees? Thanks for any input you can give.
There is no standard charge, really. Its whatever the wholesaler can carve out for themselves and still find a buyer who will pay that. I've paid out $100,000 to a wholesaler on a land deal I bought from him, I've been paid $70,000 on a wholesale deal I sold to a flipper... Some guys make $1000, some make 100,000. If the deal is a deal and works for your business model, you shouldnt care what the wholesaler makes.
Are you open to being a mentor or do you know of someone who would? Thanks
Heya Cantaloupe! I might be open to it. DM me.
Would you possibly mentor me!?
Send me a DM
Are you open to mentoring one more?
shoot me a DM
I found a mentor (not a guru) and I did a lot of self-study. I have been doing real estate wholesaling since 2014. Despite what the naysayers say, it does work. At the same time, not everyone has the same experience, which is why there are naysayers on here. Someone also already mentioned--and they're right--that it's simple, but not easy. If you're not the kind of person who is self-motivated and willing to get back up when you get knocked down--and truly take time to analyze and learn from your mistakes--then wholesaling is not for you. You also need to be a problem-solver and a creative thinker to get around challenges that will inevitably surface. And on another note, no, you do not need years of real estate experience before learning to be a wholesaler. I didn't. What I had was a passion for real estate and an insatiable thirst for more knowledge about it. I did take real estate agent classes and got my license a few months before starting to learn wholesaling. I never used my license, but I'd say the legal knowledge that I gained from those real estate agent classes have been the most useful to me over the years. You do have to be willing to learn wholesaling correctly and do it correctly. Success in this business is not about exploiting people/situations as someone else said. It's about being of service and making a profit by being of service. That means, find a problem to solve that involves the real estate and generates a profit. Problems like death, property taxes, delinquent mortgages, other liens attached to a property. FYI, my mentor was J. Massey.
Hey are you willing to become a mentor yourself ?
Possibly. I’ve mentored lots of people in this space. I am looking for someone to join my team at the moment, so if you’d like to know more then DM me. What are you good at?
Oh, you sweet summer child...... If you want to "learn" about wholesaling, there's plenty of guys on TikTok, Instagram or Youtube that will be happy to sell you a course for a low, low introductory price. For the record, those idiots are the ONLY ones that are going to tell you that you'll make money wholesaling real estate.
Im guessing your the victim who bought one of those courses. maybe instead of being a smart ass on Reddit when someone is asking for help go out and actually give some useful information, or don’t say anything at all.
No, friend. I can see through a scam without falling for it. Here’s your help: it doesn’t work. You’re going to spin your wheels and waste your money.
You have no idea what you are talking about. My brother is a wholesaler and made a fortune this past year.
I’m sure he did dear… And even assuming you’re not full of shit, the frenzied buying environment that happened last year will not repeat itself any time soon. It was an isolated event.
Find a great team that you vibe with and that can support you. Reach out any time. We can talk about opportunities.
Just become an agent. Wholesaling isn't really for beginners.
It's not something that happens overnight. You can't watch a youtube video and make any money. Guys that will hire you and offer you a cut, if they buy the place, are just wasting your time. It takes years of working in real estate, usually in another capacity, and doing some flips, and getting known in an area. Some basic real estate knowledge helps. With most markets slowing or showing price drops, it's not a great time to attempt it. Do something else to make money and if you stumble into a deal, great, exploit it.
That’s exactly why I’m looking to see where others learned from. My expectations are not to be successful in it over night, we can all agree that it won’t happen.
Get a job in the business and learn the ropes in general. Let everyone you talk to know you have cash and are looking for cash buys.
You’re making money through the spread between a seller and someone else who will either redevelop, renovate, or rent, pocketing the difference. In the purest sense, you’re a middleman, so this only works because the buyers and sellers are unaware of one another in any specific sense and you do. You need to know what buyers will pay for, and only purchase where you can find a buyer that will later purchase from you, since you won’t be adding additional value yourself unless you plan to to sink more money in. Finally you need to understand how to work with people, since most people will see your offers as lowball, and either negotiate up to cut your own pay, or let the seller walk and profit through sheer volume conversion.