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
Posts
