5 Tips I learned from my First Wholesale Deal

If you did not hear how i did my first wholesale deal, click here. For those who did watch, I wanted to write a blog and talk about some of the things I learned when I did my first real estate deal. As you know, I was able to find another investor, sell myself, and get a few properties to market for him. From beginning to end, it took us over more than a month to take a foreclosure and wholesale it for 10K. Reflecting on that very special moment, here are my 5 lessons learned that would be helpful for anyone getting started.

1. Just do it! Just like the saying goes, if you do not try, then you wont! Getting the courage to say to yourself, “I am going to wholesale a property, no matter what”, can be pretty scary. others have the luxury of trying this with a partner, but I did not. I put on my boots and I went to networking events, seminars, and bought my first guru course. If I had not done so, I do not think the push would have been great enough to push my fear aside and try.

2. Put yourself out there. Once I got some seminar juice in me, I decided to hit up every body I could find on real estate websites, blogs, groups, and events, to see who is doing it, and who is not. Instead of doing it all myself, I was told to find someone who is already doing deals, and offer a service for free, in exchange for knowledge. I did just that. After contacting close to 30 investors, one managed to be interested enough to reply. The rest is history!

3. Learn the Internet! If it was not for internet marketing, i would not be a wholesaler today. Real estate is an industry where everyone wants to play, but many fail and leave. The Internet allows investors to connect at a much faster and convenient way then ever before. From marketing to networking, the web has made your not-so-smart investor into online gurus. I met my associate online, and I found a buyer online.

4. Be patient. Real estate investing sounds great, and it is, but many who do not get returns in 1, 2, or even 3 months, quit! Foreclosures are not going anywhere, neither are deals. It took me over 3 months to cash a check. Every investor will tell you that the first deal is the hardest, but then things get easier once you get more comfortable. Investing in real estate, or wholesaling for that matter, is a lifelong career that can yield a lot of income for those who know its there and have patience.

5. Know your numbers. When you are wholesaling, you are trying to sell the idea of future profits to an investor. Knowing the numbers is vitally important. Unfortunately too many newbies try to sell investors without a single clue on the property, rentals, etc… On my first deal, I was able to get a realtor to send me the latest comps (I learned to do comps from the guru seminar), and used that information to sell the idea to investors. The numbers sell the story, which ultimately sways an investor one way or another. Learn your numbers ASAP!!

If you are reading and are new to investing, check out more of our tips and blogs about wholesaling. If you invest yourself, tell us what you think!