I am asked all the time how you can get started in real estate with little or no money in your pocket and less than a stellar credit score. The obvious answer is wholesaling houses. I have to tell you, putting a house under contract when you have an empty bank account can be more than a little frightening when you are just getting started.
The doubt starts to creep in, and that little voice in your head goes into overdrive. “What if I can't sell the property”? What will I do? Should I just get out of the contract.
I can guarantee you that the little voice in your head is the same voice that was in every new wholesaler’s head when they first started. It takes a couple of closings before you finally feel comfortable knowing you really can do it. Wholesaling houses for quick cash is not nearly as hard as we first make it out to be, but there are some things that will make it easier. One of those things is building a strong buyer’s list right from the start, and we talk about that in this podcast.
Why Every Investor Should Learn How to Wholesale
While I think every real estate investor should learn this strategy no matter what their primary investing strategy is, you should be clear that wholesaling houses for quick cash is a job. Yes you can get started without any money, but it’s easier if you have a little cash since a big part of wholesaling is marketing and marketing costs money. Having cash reserves for marketing will make your success easier and it will definitely come sooner.
You are also going to need some systems so that you’re not a slave to your wholesaling business. Remember when I said wholesaling is a job?
Even if you are a rehabber or a buy and hold landlord, when you know how to generate these big chunks of cash you can pay down your rentals much faster, build a reserve fund for your rehabs (nice for when something doesn’t work out as planned), and it’s also an additional income for you. Just about every investor comes across houses that don’t meet their investing criteria so why not learn how to pass those properties on to other investors and make a nice profit for yourself?
The Wholesaling Podcast
A while back I was invited by BiggerPockets to do a podcast on wholesaling. Jumping on a call with Josh Dorkin and Brandon Turner is always great fun. We covered a lot of ground in this podcast. Some of the things we talked about were:
- How to get started
- Where to find the leads
- Tips for building a buyer’s list fast and at no cost
- Why I like double closings rather than assignments
- Why you really can show up at the closing with no money when you double close your deals
- Direct mail and marketing
- Negotiation tips
- Figuring out the sellers true motivation
- And much, much more
You Can Listen to the Podcast Here
How about you?
Is wholesaling one of your real estate investing strategies?
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