myEmpirePROQuestion: “How Do You BECOME A REAL ESTATE WHOLESALER?”
Well, I wrote the bible on real estate wholesaling, it’s called “Smart Real Estate Wholesaling” which you can download.
First of all, what is wholesaling?
Wholesaling is the art and science of finding deeply discounted real estate properties, then locking it under contract and flipping the contract.
So the piece of paper that you lock in a price, a specific price point that’s going to basically create a profit for an investor.
Then you just find an investor who will pay for that property but they also pay you a fee for finding the deal.
That’s the key thing, that’s the most important part about the whole game of wholesaling.
So, How do you become a real estate wholesaler?
Honestly, it’s as easy as starting to market, but market to who?
The idea is, somebody is selling you a property at a deep discount, at a very steep discount.
When I am talking about steep discounts, we are looking at about 40-50 cents on a dollar.
Why would somebody in their right mind want to sell you their property at a discount like that?
Why would they want to do that?
Like nobody wants to give away their property right?
Well the truth is that, not all property ownership are created equal,
…some property ownership are basically a headache for the person that owns the property and they are looking to get rid of the property.
Think of it like a pawn shop where you go and say,
…“You know what, I need cash but I have these properties or jewelries that I don’t really need right now, at least. Let me go pawn these products or something just to get some cash.”
Real estate is kind of the same thing, sometimes people own properties that need repairs and things like that.
In that case, people sometimes will say “you know what, i need to get rid of the property”.
The job as a “real estate wholesaler” which again like I always say I don’t like that terminology,
…the job is to market to these potential sellers, these motivated sellers and then offer to buy their property.
You wanna offer a price that will work for them but also work for you and your investor,
So you don’t need your own cash, the only thing you need resources for is to market.
Sometimes to market will require money, time and more importantly it will require a skill set.
PREVIOUS POST: How Do I START WHOLESALING A Real Estate?
That’s the Marketing Skill Set that we teach heavily here.
This diagram right here, this is exactly the process of real estate wholesaling.
It starts with Data.
What kind of data?
Remember I said distressed homeowners, those are the people you’ll be marketing to so you need to pull those data.
The data is public, you can see who is owing money, who is facing foreclosure,
…who has a vacant property, who actually owns a property that they don’t live in and that’s not really their primary residence.
If a property is giving someone a headache and it’s not really their primary residence,
…that’s even the additional reason why they may need to get rid of it at a very cheap price,
Because it’s not really about the property for them, it’s probably about money or time,
…maybe they are running out of time for somebody is about to foreclose on that property.
All of that is a public record.
Knowing how to pull that data is really the first step.
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Once you pull that data and then you convert that data into meaningful information which is usually either you learn how to market directly to them on social media.
Using today’s technology such as Facebook or Instagram which is again, we have a new course on that right now,
…so if you go to 11DaysChallenge.com, you will get access to that.
The point I am making is that the first step on, how do you become a real estate wholesaler is understanding this process.
It’s marketing, basically you have to start marketing.
Who do you market to?
You market to distressed homeowners or distressed sellers.
Maybe not sellers yet but at least distressed homeowners because you may just pick somebody’s interest in wanting to sell.
Them seeing that maybe the only solution for them at that point in time is for them to sell the property,
And you have to go through numbers, you have to go through a lot of people to find a deal but it’s always worth it.
This is where the money is at, you close one deal you can do $20,000 you can do $10,000 or $15,000.
My highest is $82,000 from one deal, so it’s absolutely possible.
The first step on, how do you become a real estate wholesaler?
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I would say it’s probably to educate yourself honestly, you know.
But you can attempt it, you can drive around for dollars and see if you can find deals.
I don’t recommend it but some people, maybe you’ve listened to some people who recommend that that’s how you start because you feel like you’re broke.
For me you’re not as broke as you probably think.
I think you should learn how to do the game because the people that make the most money in the game are people that understand marketing.
And really it has been broken down into 5 steps you see above.