Getting into wholesaling is not for the faint of heart. It’s exciting, but it’s full of heartache and anguish. The internet is full of advice on how to be a wholesaler. We’re not going to teach you that in this article, but we are going to give you five things to take to heart as you enter the wonderful world of wholesaling.
- Find Angels: Chances are, there are tons of flippers in your area. They aren’t hard to find. Scour consumer sites like Zillow or Realtor.com and look for homes that have recently been renovated that are being sold. You’ll be able to use your local clerk of court, tax assessor, and/or property appraiser to find out who owns the property. Then, reach out to them to find out if you can bird-dog for houses for them for a fee. This will allow you to connect with different investors, build your investor list, and hone your craft.
- Squirrel a Little Something Away: As you do deals, be sure to save something for your future. You certainly don’t want to make other people rich forever. You’ll want to do deals for yourself as quickly as possible. As you get better and better at wholesaling, you’ll build more and more capital, which leads me to my next point…
- Find the Money: It’s likely that in your endeavors, you’ll stumble across hard-money investors as well. You’ll likely find properties that you wish that you, yourself, could own and flip. As you do deals and you’ve set aside some cash, be prepared to take a good deal out if for some reason one of your buyers doesn’t bite. Having the financing together to take out a deal takes a lot of the pressure off as you are searching for deals.
- Make Mental Notes: During my years in banking, I learned that when you run unto someone that takes advantage of you, you be sure to make a mental note of it. You’ll quickly find your favorite buyers and there will be others that aren’t so great to deal with…
- But Don’t Burn Bridges: You’re going to meet a lot of jerks in any business. Real Estate seems to have more than their share. People are going to take advantage of you. Stand up for yourself politely, but don’t go on the warpath. It’s simply not worth it. You never know who the offender knows or how they might make your life miserable. There’s no point in actively trying to make enemies. If you handle things correctly, those offenders might even speak well of you. Never burn a bridge if you can avoid it. It’s certainly not worth it.
Wholesaling isn’t easy. Gurus might make it seem that way, but it’s not. It’s hard work. With practice, you can hone your craft and do quite well. Keep your chin up and you’ll do well for yourself.