Here is something I’ve been thinking about: how to simplify the explanation of wholesaling.
I’ve been speaking with a lot of people who have interest in what I do. I try to explain the concepts of real estate wholesaling, but it often goes over their heads. This include those who are interested in using this niche to help them get started in real estate. So for a brief moment while I have your attention, I’d like to dive into the major components of a wholesale transaction.
Before I start, I want to preface this by stating that these are just the five major components of wholesaling. Within each component, there are many smaller intricacies that need to be mastered.
So lets begin.
How to Invest in Real Estate While Working a Full-Time Job
Many investors think that they need to quit their job to get started in real estate. Not true! Many investors successfully build large portfolios over the years while enjoying the stability of their full-time job. If that’s something you are interested in, then this investor’s story of how he built a real estate business while keeping his 9-5 might be helpful.
The 5 Components of Wholesaling
This is one of the most important components. Marketing is important because it’s the heartbeat that keeps your business going—or helps it get going. Simply put, without marketing, there are no leads. And without leads, there’s no business.
When I started, I hated marketing. It sucked for me because in order to market a product or a service, you have to have a budget. Well, in the beginning, most budgets for people who are just getting started is $0.00—and I was in the same position. Lucky for me, I’m an outside the box thinker. The main question I asked myself (I’m also a self-talker): How can I get noticed and find someone to bring me leads?
Thinking outside the box, I used the power of proximity. I would go to open houses hosted by realtors in my neighborhood and talk with the listing agents. I found this to be profitable. I found an agent who had a property that fell out of escrow, and the owner was distressed. Without delving into the deal, I was able to walk away with a $2,200 joint-venture deal (check in hand). What some people would pay $20,000 to learn from a course I learned in my first bird-dog deal.
You have to think outside the box to market to sellers, agents, and buyers. You have to utilize social media, direct mail, cold calling, newspaper, and any other marketing tool you think may be useful. However, the most important thing to do is measure to see which tool is successful for…