Tuesday, October 7, 2014

Wholesaling Real Estate ...No Money...No Credit...No Problem

Wholesaling Real Estate

NO Money…NO Credit…NO Problem

Why does anyone want to get into Real Estate? I don’t think I ever heard anyone say “to work harder after my regular job in the evening and on the weekends, to spend my savings to fix up a place for someone else to tear up, so I can evict someone and try to collect the money they stole from me, to overpay for a fixer upper, to put more money into a house than it is worth.” I can’t recall ever hearing any of this.

 Almost everyone says that they want to get into Real Estate for more money. We all have reasons for more money. It’s not really about the money. It’s about the “Why.”  I used to think that money was the why.   Money is a tool, not a why.

I came to a realization back in 2007 of what my why really is. My why is “freedom.”   My wife Sue was diagnosed with stage four colon cancer on March 1st. She passed away on June 27th. Money didn’t matter. What did matter was because of Real Estate I could be at home with her because I had money coming in. I didn’t have to go to a “real job.” Even Steve Jobs with all his money could not buy one more day on this earth.

Many beginners get into Real Estate because they have little, not enough or no money. A lot of times they have no credit or bad credit. Those things are very forgiving with Real Estate. One of the things that anyone can do is to wholesale Real Estate.

It’s very simple. All you do is find a property that someone no longer wants. They may not have the money or don’t want to spend the money to fix it up. It almost always needs to be a property that is not listed on the MLS (by the time it is listed on the Multiple Listing Service it has usually been picked over). It’s usually not associated with a Realtor and can be gotten for a substantial discounted price.

You, the wholesaler, and the seller fill out a sales agreement/contract. I have a very simple two page sales agreement that I use most of the time. I also have one that is six pages for those who think it should look more Realtor like. Very rarely is this a factor.

I like to set the closing for 90 to 120 days in the future. This gives me plenty of time to find an end buyer/investor. Most of the time we close on the property within a few weeks. There are a couple of ways the deal can be closed. Some like to do a double closing. This is where you have a separate sales contract with the end buyer and the amount you are making is not disclosed.

I personally like to be totally transparent. I like the one close option. Everyone is involved and everyone knows everything.   I assign my contract to the end buyer for a few thousand dollars to several thousand dollars. My experience is that leaving some meat on the bone so others can make a good profit keeps them coming back for more. It’s very simple, very quick, no secrets. Everyone wins.

There are a lot of good courses out there that teach different strategies and techniques on Wholesaling Real Estate. I encourage you to take some courses, attend some seminars and get educated. Wholesaling is probably the easiest way for a newbie to get involved with Real Estate.

Many choose to remain wholesalers their entire carrier. Others go on to other aspects of Real Estate investing. Whatever you decide to in Real Estate, I would recommend finding something that you really like to do and become good at it. You’re never going to be great at everything and you can become an expert at one thing.

Another thing I might recommend is to find yourself a Mentor. Someone that resonates with you. There are two ways to get educated in Real Estate. You can do this the hard way like I did learning by trial and error for 25 years. Or you can jump start your way to success by learning from someone that’s already done it.   

Sure, it cost money for a good mentor. And, not every mentor is for you. In perspective, what does an MBA at Harvard cost? Maybe $180,000 to $200,000. And you may be taught by someone that has never run a business. Learning from someone that has been there, done that can catapult you. Just make sure they resonate with you.

This is absolutely a great time to be involved with Real Estate. I have never seen a time when you could get properties at these prices. Wholesaling is a great way to make good money simply by solving other people’s problems. Everyone wins!

I’ve made more money by making deals and doing paperwork than I have ever made painting the living room or cutting the grass. Wholesaling is very simple and anyone can do it.

Happy Investing,

John Lee                                                                                                                                                       the Deal'ionaire

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