Seven Common Newbie Real Estate Wholesaling Questions, Answered.

Many people misunderstand the concept of real estate wholesaling. With many misconceptions out there, newbies and aspiring wholesalers find it challenging to start up their business. Real estate wholesaling has become a popular investment because of the low risk and big rewards. However, it is important to know as much as you can and have a plan for you to grow your real estate wholesaling business. Are you a beginner or considering to jump into real estate wholesaling? Do you have questions that you need answers to? Well, you came to the right place.

Here are seven common questions wholesaling beginners ask and the answers.

Is wholesaling illegal?

Most beginners in wholesaling start with this question or another form of this very question. They tend to think wholesaling can’t be legal because it sounds too good to be true. Well, the truth of the matter is that wholesaling is legal. However, you have to ensure you use the right verbiage on your contracts. You have to do the transaction with the highest level of integrity. It is imperative to consult an attorney for every contract you get.

Should get a license?

If you have the intention to become an investor, in the long run, it is important to have a license. A license will get you full access to the MLS and open other opportunities for income. Moreover, you will have a level of credibility for your wholesaling business.

How can I find a good mentor for my wholesaling business?

New wholesalers want someone they can freely ask questions, get ideas from and someone who can be there for them when they need them. However, you need to note that you can only find a true mentor when you’re ready for one. You need to take action and be able to provide some value before a mentor can be interested in mentoring you. Cold calling, email marketing, use of bandit signs and many more actions are vital for you to find a true mentor.

How can I find motivated sellers?

To get motivated sellers, you need to take action on things you’ve learned. Moreover, let everyone you know be aware of what you’re doing. While it may seem daunting since you don’t have any closed deals to show, it is a great way to find deals. Get out there and beat the streets for wholesale deals.

What should I say to a seller?

Most newbie wholesalers wonder what to say to the seller. First, you have to build confidence. Then, it is good to do more of listening than talking when with the seller. Ask the seller why they’re looking to sell, how much they would like the sale to go, the repair needs of the house and any concern you should have as a buyer.

How much do I offer for their house?

Determining how much to offer is a bit of a science and it varies depending on the market. Usually, people use the rubric ARV x 70% – Repairs – wholesale Fee. This gives the maximum amount to offer. However, this could still vary depending on the state of the market and how aggressive you are.

How do I find investors to buy my deals?

Building a list of buyers would be a good place to start as a new wholesaler in the market. Use google to find a list of potential cash buyers in your area. Real estate sales report for cash deals can also help you identify potential buyers. It is also good to work with local investors to help you find buyers.