Q: I want to get started wholesaling houses, but I have crappy credit and I’m broke. Is it possible for me to succeed given my circumstances?
A: Yes. I got started with crappy credit, and I was broke.
Was it easy? No. But I was willing to do whatever it took to succeed.
Anyone can make it in this business if they want it bad enough and are willing to work through the learning curve. If I can do it, so can you.
Q: I heard on the news that you can’t make money flipping houses anymore because the market sucks. Is this true?
A: No. There are a ton of investors buying properties right now. I’m in Tampa, FL which is supposedly one of the worst markets in the country, and I can tell you that the great deals are flying off the shelves.
Stop listening to the doom and gloom on the news, and start surrounding yourself with those who are successful at what you want to do. There is a ton of money being made in this market, and anyone who tries to tell you otherwise doesn’t know what they are talking about. Period.
Q: How did you get started?
A: I read everything I could get my hands on about wholesaling. I read every single article over at Flippinghomes.com, read every post on the forum, and asked questions as I went along.
I bought Steve Cook’s Wholesaling for Quick Cash once I could afford it, and also attended his boot camp. Armed with this information, I took MASSIVE ACTION, and eventually my efforts paid off and I started doing deals.
Q: I’m a little overwhelmed and don’t know where to start. Any suggestions?
A: First, educate yourself. If you can’t afford a course or a mentor, there is PLENTY of free information on the internet to get you through your first deal. Check out the resources section for a list of sites with free articles, ebooks, and audios.
Second, take the information you have learned and start TAKING ACTION. Start networking with other wholesalers, looking for buyers, and learning your market. Keep in mind that there is a rather steep learning curve to work through, especially if you have zero real estate experience. Just be patient, keep learning, and keep taking action.
Q: Did you start out wholesaling REOs, or did you do regular assignment deals?
A: My first several wholesale deals were with private homeowners, not banks. I closed on my first REO wholesale deal in January of 2008 and every deal since then has been an REO.
Q: Does wholesaling REOs require any upfront cash?
A: Unless you are able to find a buyer very quickly, you will need to have cash available for an earnest money deposit when dealing with REOs (typically $500-$1000).
Q: My realtor told me I need a proof of funds letter to submit with my offers. Now what?
A: Go to my transactional funding site, and get a free proof of funds letter.
Q: Should I build my buyers list before I start looking for deals?
A: Not necessarily. I didn’t have a single buyer on my list when I put my first deal under contract. It does make it easier if you have buyers lined up to sell your deals to, but trust me when I tell you that if you get a slammin’ deal under contract, you won’t have a hard time selling it- buyers list or no buyers list.
Q: How many investors do you have on your buyers list?
A: It’s always changing, but I usually only have about 5-10 active buyers at a time. I keep selling to the same people until they run out of money. Then I go find more buyers.
Q: What methods do you use to find buyers?
A: Bandit signs are my favorite. Here’s a post I wrote that goes into more detail regarding this strategy. I’ve recently started paying someone to put the signs out instead of doing it myself. I pay him $1/sign, which is money well spent.
Q: What formula do you use when making offers?
A: I don’t use a formula. I know my market inside and out (for the most part), and I know what numbers my investors are looking to buy at. I make my offers according to those numbers.
Q: Which wholesaling courses do you recommend?
A: My eBook: Flip This REO!, Steve Cook’s Wholesaling for Quick Cash and Lee Kearney’s REO Rockstar.
Q: Do these courses really work?
A: Only if you do.
