Getting Started as a Wholesaler

The first step in reason is to begin with the phrase "I don't know". I just got back from the first REIA Meeting and I would've said that I knew something about wholesaling from books, blogs, Investopedia.com, and just about anything else that I could get my hands on. But now I know that it was only the tip of a very large iceberg. I'm embarrassed that I didn't as much about the wholesaling process that I thought, and completely amped to now have that information.

The reality is that I was completely unaware of what I didn't know about wholesaling, and I've doubled my understanding of wholesaling. There are rules in every situation. I can see that the rules are slightly hidden when It comes to investors, and that breaking those rules will ruin a reputation very quickly. I got a rare opportunity where a seasoned investor (Nick Tang) isn't just going to tell me how to wholesale, he's also going to show me the rules that other investors live by.  And I've built a list of the rules from this meeting:

1. Know the Business - If you have a general idea of how a corvette works, that doesn't qualify you to take apart the engine.

2. Know Your market - The area that your working in is your entire world. It should be the first thing you think of when you wake up and the last thing you think of when you go to bed.

3. Don't Get involved without an End Game - Consider the strategy that you can use to make money in EVERY situation. Notice an opportunity and think of how much you can profit (Reputation as well as cash) , then work the situation from the end to the beginning.

4. Do the Math - This is a big thing. EVERY Investor wants to know that you can add, so be a mathematical showoff. Run the numbers on every opportunity, then run them again. If the deal is promising, then the math will speak volumes. Your goal here isn't to talk someone into a deal where only one person can profit, but to build a reputation of creating win-win situations.

5. Get accurate comps - NOTHING will piss off an investor faster than wasting their time with an estimate that isn't what it appears.(they have loads of money, but time is another story).  There are tested techniques to estimating FMV on a property and it's no where near as complicated as people may think. The goal is to protect your reputation in the biz by being truthful, accurate, and efficient. You can always make more cash with a good reputation.

6. Verify so you can trust - The only way to make sure the your RE Agent is doing what they are suppose to be doing is to check them. Assuming that you have a good contact anywhere  without checking them is just plain bad for business. 

7. Line up 5 buyers - In every deal you should have an "A-list" of buyers and a "B-List". Your A list are the buyers that you know are serious about what they do, and if you have a good deal then they will be at the table. This is going to be a much larger list than the B-List. Line em' up so if one buyer backs out you won't be losing sleep over how much money you could've made.

8. Quality Not Quantity - Before I walked into this meeting I thought I knew what kind of team I wanted. I would need dozens of people all doing the same job at a moderate pace. I would pay them dental, and health, and they would work for a meager salary in an office somewhere. Now I see that If you want an efficient, motivated, effective team you should begin with the easiest question "What do I need?" and make it "Who does it the best?". That's right everyone, you should find the best of the best, and train them to be even better. You want a highly-paid, well-oiled machine, with members that only seem to get better and better.

9. Become a Marketing Master - Last but definatley not lease. If you can keep track of your marketing campaigns, what works and what doesn't will start to just show up. 90% OF THIS GAME IS LEAD GENERATION. If you can manage to do this without effort, then you don't hesitate to contact me.

Well, these are the rules in the world of Real Estate Investing. Hope this was helpful. I think I learn more when I teach so I may do it again from time to time. Good luck to everyone.