Question?

The wholesale techniques, I assume is for people that have no way of finding success in time being at that moment in their lifes. I belive its a way to help find wealth. To turn to a career as an agent means you plan to be in real estate. But if you are having difficult times, wholesale is the quickest way to prosper out of that situation.
I just did my first deal. From start to finish it only took 13 hrs the first week. And we are now just waiting to close at the end of Jan. I made $5000, selling a property worth $97000 ARV, purchased for $10, 000, and wholesale for $15, 000. I lost my job on Oct, make about $1400 a month. On December I make $5000. Ahhhhh, I will tell you that I will do this again before we close on this deal. Hopefully 2.

Obviously, you have never wholesaled and really just don't "get" it. There is no way that I could make the money that I make on wholesale deals as a realtor. I HAVE had a REA license, so I can speak from both sides.

Some of my deals have included:
~A six month old house, ARV $169,900. Under contract for $105,000. $0 repairs. Sold to 1st person who looked at it for $135,000.
~A house in another state (WV), I never even saw or showed. ARV $158,000. Under contract for $98,000. $0 repairs. Sold in two days to a cash buyer from CA for $$112,900.
~A mobile home, completely remodeled, furnished with very nice furniture. Under contract for $9,000. $0 repairs Sold to second buyer who looked at it for $18,500.

These are just SOME of my deals. There is ABSOLUTELY no comparison!

Karen

but wholesaling is

wwwwwaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaayyyyyyyyyyyyyyyyy better than being an agent. i can personally create multiple wholesale deals and be closing all the time. with an agent there are so many variables. (house off the market for 6 weeks and then at the last minute financing falls through or they couldn't sell there house to buy yours) you can only be an agent in one town at a time where you live. you can wholesale in many cities simultaneously... the money is wwwwaaaaaaaaaaaayyyyyyy better $$$$$$$$$$$$$$$$$$$$$$$$$$ read deans yellow book and maybe you will get it....i can't believe you've been here since 2011 and your asking that.... not to mention MATT taught us in 4 WEEKS TO FREEDOM how to get virtual assistants, a personal assistant and an intern(interns work for FREEEE) to work for us and be doing deals daily without us having to do the physical labor the assistant does it all...As an agent you do all of the work.....

"No mentoring or training fees. No costly books or lessons". huh ??

getting your license classes cost $750 in my state - mls access hundreds if not a couple of thousand a year - E & O e&o what is that it's errors and omissions insurance required - have i mentioned continuing education classes to keep your license cost and time and headache... wholesaling is way better !!!!!!!

It depends on the individual. One of my cash buyers said when he first started wholesaling, he wasn't having much success. His family told him to commit or get out of the real estate business and find another line of work. He got his license and said he did 10 times more deals with his license. Today he puts together million dollar funds from private money to fund his deals. It's just another avenue to learn the business. Contrary to popular opinion, this business isn't for everyone. Some people don't have the discipline and aren't the motivated self starter types and need the structure of a brokerage to succeed. In my cash buyers case, his license was just the stepping stone he needed to get over the hump.

He is in the million dollar league because he has cultivated enough experience and respect in the industry. He would have had a much difficult time if he stayed on the wholesaling side. He was smart enough to surround himself and associate with top players. Being in the selling/representing side, he came in contact with movers and shakers everyday and garnered the trust and respect of investors and private money. In the end, he is proof that the level of standing in this field is as important, if not more, than how many wholesale deals you do. Prestige and professionalism always attracts higher success.

As hard as it is to find a good agent to work with, do you think an agent who had an investor mentality and specialized in working with investors would have a problem making money?

The reason why agents are difficult to work with for investors is simply because of economics. Why would an agent want to work with an investor who will look at 25 house only to give a low ball offer. On the other hand, a retail buyer will look at 3 and offer a fair price. Plus, with the retail buyer the higher offer translates into a higher commission. So we can't in all honestly blame the agent. They, as much as the investors, are looking to make the highest amount of profit. Why bother themselves with something that requires a lot of work with little return if they can simple go for the crème de la crème?

Another issue with wholesaling is that it is not an investment. It's simply a job. A job that will hopefully be the vehicle to gather enough money to actually invest in real estate (i.e. flipping, developing, rentals, etc). But it is also a hard job in that it will take considerable time and effort to secure a decent annual income. If the goal is to accumulate enough money to really invest in real estate, then there are many other ways beside wholesaling to make money.

The point is that wholesaling is a simple process, but not an easy process. Simple does not equate to easy. The steps are obvious but the results are not. It's one method to enter the field, but it is definitely not the best. The ultimately goal for anyone entering this field is to eventually do real world investing. Investing that will bring passive income. If money is the means to acquire properties, then why take the tough route? Being a real estate agent/broker will lead to the same end in a more secure, confident and professional manner.

We seem to have a different viewpoint on the definition of work. If I were an agent, why would I want to take time out of a weekend afternoon to drive a retail buyer around looking at houses on the off chance that he might buy one and then call me 7 years later when he wanted to move up? I could simply set up a daily search on the MLS for price reductions and DOMs, email them to my buyers and say Let me know what you want to do. A cash buyer buys repeatedly. If you had your state approved realtor contract in a template with your buyers e-signature, would you rather put addresses and amounts in a template 25 times or drive a one time retail buyer around wasting time and gas? To me, it's a no brainer to work with a cash buyer. But that would be the difference in working with an end cash buyer or a wholesaler. The cash buyer I referenced has realtors calling him when houses fall out of escrow because they know he offers all cash with no contingencies and they know he will close.

When you are wholesaling you are limited to finding a few properties in distress and then offering them to a few cash buyers on your list. On the other hand, being a licensed real estate agent you have an unlimited pool of potential buyers (principle & investor) plus unlimited source of potential sellers. No matter what, the distressed properties will always be less than standard sales. Additionally, retail buyers will always be way more than bargain hunters. The end result is a constant flow of both buyers and sellers to fund your lifestyle and future investments. With wholesaling, the potential can only go as far as what is available both on the distressed and cash buyer side.

I would rather earn 10% from 10 investments, then 100% from 1 investment. An investor is your comeback, as to a retail buyer is one time. The markets go up and down. but no matter what, investors/wholesaler will always buy.

The market is cyclical for everyone. At the lower end, the investor type will try to squeeze the market more than the a retail buyer. Besides, the lower the price the less the commission (or mark up for wholesalers). It's obvious that when the market is down, investors will be more aggressive and less inclined to pay big finder's fees. As with any business, investors will work with more than one wholesaler at a time and when they sell they do so most often through a real estate agent.

A real estate agent wins both ways. They can sell to a buyer and/or list a property from the owner. Whereas the wholesaler can only make a profit by selling their interest to another investor. They can not take advantage of the second phase of the process. Additionally, when a wholesaler finds a property through the MLS, a real estate agent/broker somewhere is getting his commission.

The days of cash buying advantage are pretty much over. That worked well for banks and REOs, but in today's climate the seller couldn't care less. Whether cash or financed, they'll get paid in full and walk away in most cases.

Yes, the realtor is not limited to wholesale only. The investor friendly realtor can also find people for lease options and subject to's, other avenues that traditional realtors deem voodoo realty due to a lack of understanding. Realtors turn down tons of deals because they feel there is not enough equity to pay their fee in a deal. Uneducated realtors always think their commission is at risk. Nothing could be farther from the truth. Realtors can generate passive income by carrying their commissions. Realtors can also manage properties and the sheer value of the networking from running in those circles on a daily basis is huge. Plus the fact you are accountable to your broker rather than a coach. Instead of paying for a coach, you get to earn while you learn as a realtor. You get to be an insider in the brokerage game. You don't have to come up with earnest money and you can lock up a property exclusively for 6 months or more. If another agent sells the property you listed, its the same as co-wholesaling but you don't have to worry about anyone going behind your back. It's a different mind set. It works for some while it might not work for others. I just think if you had the investor mentality and catered to investors knowing the tools available, you could kick butt as an agent.

Thank you for providing support for my position. As you said, there are ample ways to work within the system such as being an investor friendly agent that can also help people in lease options and subject to's, etc.

My point is that the possibilities are endless when you're associated with a proven broker. Being a real estate agent and a wholesaler does not qualify as investing in real estate. Both are merely day jobs. If you're true goal is to make money so you can start investing, then the quickest and shortest method must be employed. Nothing can beat the benefits of working with a brokerage firm which offers built-in support and exposure.

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Objectives

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Common objections & how to overcome them
Understanding buyers objectives

How to qualify a buyer.
5 simple questions you need to ask before you spend any time with them?
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3 Skills you need to work with investor buyers
Finding “pocket” deals for your clients
How to turn a rent survey into a sale
2 simple ways to protect yourself from buyers “going around you”

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A buyer qualifying questionnaire sheet
A buyer checklist
Buyer scripts

This event is free. We host these events as a way to network and share ideas.

I have the solution!! Go get you realtors license and do it that way yourself! Get yourself a J.O.B. Me, I love the FREEDOM along with the money that wholesaling provides. I can do what I want, when I want! To me that is every bit as important as the $$$. One other thing, I don't work hard now. I worked pretty hard the first 2 years but now with my systems in place it is almost like being retired.

Let us know how being an agent works out for you! We all need a good agent to work with.

Good Luck,
Michael

Why do you assume being an agent does not give you freedom or to do the things you want and when you want? Agents are not employees, they're independent contractors who work on their own time and schedule. Just like wholesalers, they do not get a salary and don't get paid if they do not generate sales. Same goes for the hard working part, the first couple of years they work to gain reputation and a client base, later it all comes back with referrals and repeat clients. Less work will be required once they've been established.

I know you like wholesaling, but I don't think it's fair to completely dismiss the broker profession. Everyone should decide for themselves. The least you can do is provide a fair and balanced opinion on the topic. But as usual, your approach is nothing short of making fun and ridiculing.

I think who ever wants to become an agent should become an agent. Those who really are not entrepreneurs should go the agent route.

Also, you must remember, this site is really for investors looking to wholesale, fix/flip and buy and hold. It is not about becoming an agent here.

That is reality and it has nothing to do with making fun or ridiculing. Sorry you took it wrong.

Merry Christmas!
Michael

I think there is a reason why confidence and all this talk about personal development is constantly discussed when talking about real estate. It all has to do with fear and the lack of experience.

Becoming a real estate agent will probably conquer this phobia. Being an agent is not only potentially profitable, but also provides real world experience in real estate matters. Not only are you gaining valuable lessons on the dynamics of the real estate business, but you're also making money in the process.

If your goal is to wholesale to accumulate enough money to eventually become an investor yourself, then becoming a real estate agent is the best of both worlds. You make money and gain invaluable insight and experience to overcome your fears. But with wholesaling, because you lack experience you fear to move forward and ultimately contribute to the stifling of your own potential.

A real estate agent can act as a principal in a transaction and wholesale a house but there are things a wholesaler cannot do that are reserved for a licensed agent. An agent has the best of both worlds. I know a couple of agents who rehab and also hold long term. Being an agent definitely gets you on the inside.

We hear this all the time. Wholesaling is what you do to get started and move into "real" investing. Actually, that was my plan when we first started! However, due to current market trends we have decided to wholesale, PERIOD.
We have done multiple fix/flips and one from the ground up development(scrape and build) We take properties subject two and lease option on the back end. That is the only way we buy and hold. We had a tenant/buyer exercise his option this year and we netted $59,000 back in March.(some agents don't make that in a year!) So we have done a lot of different types of deals.

Don't get me wrong, agents are essential to this business, we work with many and get all the benefits of being an agent, I just don't want to be one! Also, I have discovered that in most cases being on the "inside of agent world" is not the same as being inside of "investor world" Conventional Real Estate VS Out of the Box Thinking Real Estate.

We know that buy and hold is a LONG TERM investment strategy and the many benefits (appreciation, pay down, taxes etc) However when we wholesale $50,000 in a month that is some serious cash flow. Think how many rental properties and the associated hassles you need to net $50,000 a month as a landlord. Again, I fully understand "passive income". When the market changes,(bottoms out again) we may do some more conventional buy and holding ourselves.

Anyway, to be a good wholesaler you MUST know what a deal is. Accurate ARVs and rehab/remodel estimates are critical. Then you must have an active and ever changing buyers list. Yesterdays buyer may not buy today!

If you were at the EDGE (I spoke on wholesaling) this year you know what Dean and Matt said about wholesaling. You also know what Matt said about liquidity when you buy and hold. $100,000 in the bank or $50,000 if you know how to wholesale. Very interesting!

Merry Christmas and a Prosperous 2015 to everyone!!

Michael

I like your input, very informative. However, I do also think you solidified the fact that wholesaling takes tremendous know how. There are too many moving parts (accurate ARVs, finance, rehab/remodel estimates, etc) which can easily confuse and discourage a beginner. This is the reason why I say gaining experience from within the real estate world is a wiser choice. Regardless whether the goal is to eventually become a 'real' investor or not, you must still know how the whole system of financing, analyzing and estimating are accurately done. The process of wholesaling may be simple, but it's not an easy process. Most often simple does not mean easy. Just like any other type of business, there is a right way and a wrong way to do things.

Thinking outside the box is great but having the fundamentals nailed down first is crucial. I'd even say it's a prerequisite, just like training before ever attempting to run in a marathon. Trial and error takes too long and could ultimately end in disaster if you don't know what you're doing.

You might be making some serious money by wholesaling, but evidently most are not. I can also say that I know a few real estate agents that pull in over 200K annually wearing a suit and tie, but they are the exceptions. According to the US Bureau of Labor Statistics, the average agent makes about 53K per year, still nothing to sneeze at.

I'm still in the opinion that starting out as a real estate agent is the best choice. Once accomplished, you can either stay in the field, move on to investing or transition into wholesaling. In fact, you can even do all three at the same time. The invaluable knowledge, experience and contacts you garner as a real estate agent will probably be your biggest advantage on your way to real estate success.

Bottom line is, it's up to the individual.

Can someone tell me what are some of their proven methods used to Locate Realtors that work with Investors? Thank you

Another advantage to being a real estate agent/broker is the pool of potential clients. When acting as a wholesaler, you're pretty much limited to the number of available distressed properties at any given time. The agent, on the hand, can make a profit by listing standard as well as distressed properties. As an added bonus, they can also make money by representing buyers. The pool of standard sales will always outnumber the amount of distressed properties in any market. With odds like this, the licensed real estate agent will always have more potential than a wholesaler.