Everyone and their dog wants to build a wholesaling business right now.
I mean, it’s for a good reason.
The wholesaling model requires less upfront capital than most real estate investments and it’s scalable with the right systems and processes in place.
But how do you build a wholesaling business from scratch?
Here’s how Ryan did it — you can watch the video or read the article below!
1. Look For Opportunities Everywhere
Opportunities are everywhere.
And the first step to doing your first wholesale deal is to actively seek out these opportunities. That means driving for dollars, knocking on doors, cold calling, sending direct mailers, and/or networking in the community.
Do whatever you can afford.
If you have some money, then you might send mail to save time. If you’re low on money, then you might door-knock or cold call.
When you find people who are interested in selling their homes quickly for cash, learn everything you can. Check out their house, take pictures, get a clear idea of how much work their home needs, and ask them why they want to sell.
The more you learn, the better.
2. Network With Investors
Once you’ve got an idea for how much work the home needs, take that to an investor who’s expressed interest in taking properties off your hands.
Bring them as much information as you can.
And don’t leave anything out. Be totally honest about the quality of the home.
Then ask them how much they’d be willing to pay in cash for the property. After looking over the comps, they’ll give you a number.
What you’re doing is reverse-engineering the wholesaling process. Rather than putting a home under contract and then finding a buyer… you’re finding a buyer and then putting the home under contract.
This is a safer way to find deals when you’re learning how to wholesale.
3. Take The Buyer’s Price to The Sellers
The next step is to bring the buyer’s price to the seller.
If possible, you’ll want to get them a little lowers than the buyer’s price so that you can make some money in the middle.
If the buyer is willing to pay $100,000, then you might start by offering them $80,000 to give you some room for negotiations.
But honestly, don’t sweat it.
Even if you make $1,000 or $2,000 on your first deal — heck, even if you just break even — there’s still power in having done your first deal.
Then you’ll know how to repeat the process and do it again.
In Ryan’s case, there were times where he only made $1,500 and there were times where he made $10,000. But he just kept going because that’s how you become an expert at the wholesaling process.
If the seller agrees to a price that you and your buyer are happy with, you’ve got yourself a deal!
4. Give Up On Trading Your Time For Money
When you do your first deal, it’ll likely feel a little bit crazy.
Maybe you only spent a couple of hours in order to coordinate and close the deal, but you may have made $10,000 or more.
Following the typical per-hour money-making model, that doesn’t seem to make sense.
But to be a successful wholesaler, you’ve got to remember that you’re getting paid for the opportunities that you’re providing for other real estate investors, not the time it took you to find those opportunities.
If you find a deal that’s going to make another investor $100,000 after they flip it, it’s entirely fair that you make $10,000 in the middle.
So give up on the per-hour model and embrace the fact that you’re going to be making much more money… in much less time 😉