When you are new to wholesaling, or any business, many people offer to answer your questions and help you tackle the learning curve. But you are sure to get tired of asking questions and being reminded of your lack of knowledge before you have all of the information you need to be successful. So we are going to give you three free answers for very common questions that plague new real estate wholesalers. And we promise that there will be no rolled eyes or need to feel ashamed of asking a dumb question.
What is the Best Way to Get Started?
First, you have already taken what could be the toughest step. You have made a choice to learn the business. But where most people fail is in the follow-through. The second step, actually putting in the time to get the education that you need for success, is where most people give up and wander away.
And the education that is really essential to succeed in the wholesale business is not going to come from a 30-day course at a community college. You need to educate yourself on market trends, marketing, and property and comp evaluations. You can read all the books out there about real estate investing, but unless you know your market, you will fail.
What Should I Learn First Wholesaling?
Your market is going to be the most critical part of your education. And it is also going to be the one thing that will continue to evolve and change. Information like average days on the market cost per square foot to rehab, and what types of properties are investors looking for will help you do your job every single day. And without this information, you will never be able to put together a solid deal that will earn you a profit. So begin with the basics of your area and then drill down on the properties that you would like to focus on or specialize in to launch your business.
You should also invest time in learning the signs of a motivated seller. A motivated seller will take your money today and not hold out for a few extra bucks. There is a massive difference between wanting to sell and needing to sell. You should be able to spot each type of seller quickly.
Marketing is also going to be critical to making your first few deals happen. Cast a vast net, and you will have far better results. Social media ads, blogs, a web page, videos, direct mail, radio and TV ads, door knocking and cold calls are all a part of a strong marketing campaign. As you work on marketing your business, you will determine which avenues work best for you and are the most cost-effective at reaching your target demographic.
What Resources Do I Need to Get Started?
Money is essential to launch any business. But beyond that, relationships and an extensive network are going to be crucial. Real estate is about working with people, and the more people you know, the more potential you have to close deals and find great opportunities.
You are sure to have many more questions as you begin to educate yourself and learn about the market that you hope to enter in wholesaling. And as you gather more information, hopefully, you will find a strong mentor who can help you understand how to put all of your skills and knowledge together to build a successful real estate wholesaling business.
