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Guide To Wholesaling Real Estate 101

Start Wholesaling Real Estate Today!
Are you looking to start wholesaling real estate?
We will help you go from ZERO to a success by implementing what’s in this guide.

What is Wholesaling?

Wholesaling is connecting a homeowner that NEEDS to sell their home at a discounted price to the right buyer.

FIRST,

 you will negotiate a price that is low enough but still gives the seller what they need. Then, you sell those TERMS to a buyer that is looking for that type of property. You are assigning your contract to the buyer. You get paid by selling the contract to that house.

We

will cover seller needs, terms, contracts, and sales; everything to execute a deal correctly and profitably. Wholesaling is a great way to start learning real estate while making money.

Why do most people fail?

Wholesaling is a very low barrier to entry in the real estate investment space.

Many “GURUS” and “Facebook Investors” sell the concept of wholesaling as "you can do this with very little to no money and make $20,000 per month!". This makes it very attractive for A LOT of people.

But, is this true?

Allow us to answer this question with another question. If it were true don’t you think EVERYONE that started in real estate investing would be making $20K/mo?

The short answer to this being true is… HELL NO!

When people are telling you this BS always ask yourself what their interest is in you getting into real estate.

It’s usually one of the following:

They’re trying to sell you coaching and/or training
Get you to work for them for FREE (We’ll cover this later)
They were sold on it. Although they have seen it’s not true if they can convince you it’s true then they feel it wasn’t a huge mistake.

So then, what is the purpose of wholesaling if it’s not to get rich quick with no money and little work?

Understanding the purpose of wholesaling

So, the biggest question is WHY wholesaling. Now, we're sure if you’re reading this, it’s because you probably have an idea of what it is and why you think you want to do it. But, allow us to really show you the TRUE purpose of wholesaling.
Wholesaling to us is like driving an Uber. Uber was created to put some extra cash in your pocket but not really for replacing a job or even as a career. Wholesaling to us is the same.
Wholesaling is a way to monetize on leads you come across from motivated sellers. While it does pay a lot better than Uber, it is very volatile and you can’t really depend or count on always making the same amount of money consistently.
We started our company PRYME Homes through wholesaling. If we would have stayed in that space two things would have happened. One, in order to grow or even sustain it, we would have had to take advantage of new investors by selling properties that were NOT deals and taken advantage of homeowners who perhaps really needed that extra $5,000 to move on. Which is what many large wholesaling companies do. Or two, we would have gone out of business. Wholesaling is a great way to get to start learning real estate. Please note that we say LEARN and not MAKE MONEY.

What you will learn by wholesaling

You will learn different strategies on how to make money. You will learn about different types of buyers ( fix and flip, buy and hold, owner finance or retail) and how to structure a deal depending on the type of buyer your working with.

Understand the market you’re in. The last thing you want to do is flip or buy a rental in a market that is not currently suited for that.

How to build a STRONG and dependable network. The depth and quality of your network are going to determine the success you will achieve in real estate.
The best thing about wholesaling is that you don’t have to risk tens or hundreds of thousands of dollars trying to figure out the market and the right strategy for you to move forward with.

Wholesaling is like like shopping for a car. While you may test drive a few there’s going to be one car that will suit your needs the best.

In real estate, we always say don’t be a jack of all trades; master of none. Stick to one thing first and become the best at it. Then, you can start dabbling in other strategies.

This is why wholesaling is a great way to get you started in the world of real estate investing.

How To Get Started

Now that you’re hopefully clear on what wholesaling is and why people do it, let’s cover the HOW of wholesaling.

Getting started with wholesaling is a very challenging for almost everyone so do NOT think it is just you.

Most people struggle because they focus too much on the “what ifs”.

These "what ifs" are the reason many people fall into the Guru traps and end up buying these ridiculous real estate courses for tens of thousands of dollars. These gurus know you’re insecure and scared. They’re offering you knowledge and security in a structured way. Now, we’re not saying there’s anything wrong with this but, we don’t feel it’s necessary if you truly want to learn.

But what about “mentorship/coaching”?

The majority of the gurus out there that offer any type of mentoring/coaching are doing so because they’re not making enough in real estate. Coaching, mentoring, and programs are a very scalable business.

So, it’s easier selling education than doing the work that it takes to become truly successful in real estate alone. The ones that have figured out how to scale their coaching usually have salesmen as their coaches. So, when you call in with an issue all they are doing is regurgitating the training. The worst part is most of the content these gurus are putting out are strategies and tips they may have used decades ago since it has been years since they've done any actual investing. This information won’t work in today's real estate market.

Either way, they can’t really help.

So, if coaching programs that rip you off aren’t the best option then what?

The best way to eliminate all of your “what ifs” is just by jumping in!

Now, if reading this is making you very nervous, relax. We promise you that what we’re going to share with you is going to be things that will always work no matter what economy you’re in or how little you know about real estate and your market.

There are two steps that you must take to eliminate your “What IFs”

STEP 1: Learning The language of Wholesaling

The first “What IF” everyone has is "what if I sound like an idiot" or "what if I don't know what to say".

So, the first thing you need to do is learn to speak like a wholesaler, which will set you up for your transition into becoming a full-fledged investor.

How do you do this?

You start listening to every podcast on wholesaling/investing. You need to submerge yourself in real estate. We want you to only read, listen, and watch real estate. This is how you learn a new language. We have journals full of notes we took on everything we learned from reading, watching, and listening to real estate. The reason we say to "only read, listen, and watch real estate" because the goal of this IS NOT to determine now what’s good info or not. The goal is to learn the vocabulary and what everything means. Once you learn the vocabulary then you can start getting the experience to understand whether what you’re consuming is good or not. You do that by going to networking events in your area. Join your local REIA, meet other wholesalers/investors and ask a TON of questions.

That’s it!
We know, you're thinking “what the hell is this?” but the sooner you can get into your head that it is not as hard as you think the sooner you can start actually doing it.

When you go to these events the bulk of the people that you will meet are not doing anything in real estate, even if they say they are. There are usually a handful or real wholesalers that you will want to meet and pick their brains. But, this will take a lot of time on your part and going to as many events as possible(by as possible we mean ALL).

The more events you attend and the more people you meet you will see that your knowledge about real estate grows exponentially. The best part, FOR FREE!

After going to so many events for months you will start realizing who the actual doers are and who isn’t. You will see that from month to month the crowds change a lot. That’s because everyone comes in thinking it’s a get rich quick strategy and when they realize it’s not they stop. This is good for you, less competition.

Like we said before this is not for you to figure out who’s right or who’s full of crap. All you want to do is speak to people, learn the language, and start figuring out who the real players are.

Learn some of the Lingo

ARV(After Repair Value)- this is the most common term used in real estate. This is where all of your numbers and math start with. So, the ARV simply means what the house will be worth once it is in a fully updated state.
Comps(Comparables)- Comps are properties similar to your subject property that are fully repaired/updated. These properties give you your ARV. You run COMPs to determine what the house will sell for once it is all fixed up.
Repairs- This is self-explanatory except for the fact that this may not mean actual repairs. Here’s what we mean. Sometimes a house does not need “repairs” but it does need to be updated. So, when someone asks you what the repairs are, this doesn’t necessarily mean what’s broken but rather what does the house need to reach it’s ARV.
FMV(Fair Market Value)- unlike ARV, FMV is what the value is of the house right now as it sits. This is the value of the home in its current condition.
Assignment Fee- This is the money you make when wholesaling a property. Like we mentioned in the beginning when you sell your terms to someone else you are essentially “assigning” your rights to purchase that home to someone else for an Assignment Fee.

Step 2: 

Networking 

For 

Success

We’re sure many have heard the