Wholesaling has become a controversial topic.
But it is actually legal in almost every state and is one of the fastest and easiest ways to make money in the real estate game. However, you must educate yourself first and operate honestly and ethically at all times.
Wholesaling (which is the assignment of a contract) is not investing. It's a transactional business. You are selling a contract - not investing money.
Once you have done several deals, gained some experience, and set aside some cash, you can then begin to invest profits and maybe try a flip or other strategies like BRRRR or commercial and multifamily.
For now, I recommend focusing on getting really good at finding cash buyers, finding good deals, and solving sellers problems.
First, you must understand the laws in your area regarding wholesaling. While wholesaling is legal in most states, several states have passed laws defining wholesaling as “brokering” and require a real estate license.
You should talk to a real estate attorney that works with investors in your area to ensure you are in compliance with any laws. They will also have the proper contracts as well.
If you are staying in this business long term, I recommend getting your license. This will elevate your stature as a professional and open up a lot more opportunities to monetize deals you can’t buy or wholesale.
Either way, you need to operate with honesty, integrity, and serve others by solving their problem - not trying to take advantage of them.
You really need to immerse yourself and learn all you can. Attend REI groups and meetups and network with other experienced investors.
Start with finding cash buyers. You want professional legitimate cash buyers so you know you can close on the deal and accomplish what the seller is asking.
I can’t emphasize this point enough.
You do not want to contract a property unless you know you have a buyer who can close it or take it down yourself.
Different types of cash buyers are:
You need to find several of these buyer types and learn what they are looking for. You will learn a lot about the business and the market by talking with cash buyers.
Find cash buyers by networking with:
Some companies also run TV and Radio ads.
You can search real estate transactions in your tax database. Look for entities and individuals that have bought multiple properties with cash.
You may need to search by the buyer’s address as they may change their name or the name of the entity on each purchase. You can also buy lists from companies like list source and there are some REI software companies that have a cash buyer search feature.
Purchase lists from companies like ListSource and or compile lists from city and county like:
Then you can mail or cold call or both. Other cheap or free methods are:
If you have the funds you can use:
Bottom line is integrity and consistency. You need to do what you say you will do. Take consistent focused action every day, answer the phone when it rings, follow up, and follow through.
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