HOW DO I GET STARTED IN THE WHOLESALE/RETAIL BUSINESS?
Here are some ideas that should help you get started in the right direction. You can do deals with no money down, bad or no credit, no income, no nothing, except having some general knowledge backed with a desire to succeed. I can give you this knowledge. But you will be the one that has to actually go out there and take action.
The way to make money in this business is to solve one persons problem while being able to structure the deal to where it makes you a profit. People will trade equity for value today. They will trade their equity if you solve their problem. It’s amazing how this works.
The key to finding profitable deals is to find MOTIVATED SELLERS! This is the most important part when looking for quick profits. Don’t try to make an unmotivated seller motivated. Just move on. Concentrate on dealing with “motivated sellers” and make fewer offers that result in getting more offers accepted! This is where most new investors get hung up. Trying to make an unmotivated seller motivated to sell at your terms. It doesn’t happen, period.
Motivated sellers are those that have been trying to sell but haven’t been able to for one reason or another. They may be facing foreclosure. Or they may be in a divorce situation. Or they may have been transferred with their job and need to move on, but they don’t want to leave the house empty or deal with renting it out to renters being so far away. Or they may have gotten the house left from an estate but needs repairs. Or they may have purchased another home and are now stuck with two mortgage payments. It could be from these reasons or any other, but the one fact remains the same. They need to get out of this situation fast.
Your job is to become the “PROBLEM SOLVER!” Instead of thinking in terms of, I’m looking to buy properties, or I want to be an investor, or how do I buy properties with no money, or how do I get financing, etc… Start thinking in terms of being a “problem solver”. Your job is to find SOLUTIONS to fix someone else’s problems!
Your job will be to sit down with these people and find out what their problem is. Once you figure out what their real problem is, you can now determine what they really NEED! They all WANT top dollar for their house. They want someone to just come in and buy their home the traditional way. Once you find out what their PROBLEM is and what they need, then your job is to come up with the SOLUTION that will get them what they NEED! And what they usually really need is a fast sale!
Think of yourself as a PROBLEM SOLVER! You find SOLUTIONS to solve anyone’s PROBLEM! That’s how you make the deals come together! That’s how you can make a substantial part time or full time income in the real estate business.
How do you find these motivated sellers? The best way is to get them to find YOU! You get them to find you by getting the word out that you buy houses! “We buy houses cash, any condition, any price!” I know you’ve seen these all over town, but there is a reason for that. It works!
Here are some sure fire ways to get motivated sellers to find you.
- First and foremost – you need to market yourself!
- Business Cards: You must have these printed up and hand them to everyone you know. Place them in the supermarkets, car washes, laundromats, flea markets, grocery stores, or any high traffic location.
- Flyers: Here again, you can place them in the same areas.
- Bandit Signs: Those 12″ x 18″ plastic signs that you nail on telephone poles. They simply say “We Buy Houses Cash” and your phone number. Or, “Stop Foreclosure Now” and your phone number. Or “Cash for Your House”. I’m sure you have seen other signs for other business there also. They are there because they work!
Don’t be surprised when people start calling YOU! Not all will be motivated, but some will and you only need one a month to make a nice part time income wholesaling it to someone else. Or, keep a couple and renovated them your self for some big profits. When they call YOU, that’s when you screen them over the phone first and determine their motivation.
Then you go visit them and get face to face with them and build a relationship with them. You want them to get comfortable talking to you. Whenever they talk, just LISTEN! Listen to everything they say. The more they talk, the more information they let out. The more they tell you, the more you learn about their PROBLEM and then you will know what they really NEED.
Once you got that information you can now figure out a SOLUTION that will SOLVE their PROBLEM by being able to give them what they NEED! Your solution to their problem gets them what they need and you make a profit for your problem solving skills! You’re a PROBLEM SOLVER! Just like a lawyer, doctor, psychologist and anyone else who solves problems. And everyone gets paid handsomely for their efforts.
And the most common problem is the owner needs to get the house sold and the mortgage paid off to avoid foreclosure or the burden of the monthly payments. Yes they want some extra money, but it is up to you how much you give them. What do they need? Maybe enough to move out, or rent an apartment, or just a little spending cash.
On flips or assignments, if you average $5,000 per deal, then you will only need to do one deal per month to make a $60,000 part time income. If your not that aggressive, do one every other month and make $30,000 part time working for yourself at your own pace.
So if I were starting out today I would start with wholesaling or flipping properties to other investors. Then you can watch and see what they do to rehab, market and sell the property. The key is to educate yourself in all that pertains to finding motivated sellers, estimating the after repaired value, and how to present your deal to other investors for a nice fee. All you need to do is continue with your real estate education and implement a good solid plan and take action!
Perhaps one of the most important things that you will do to ensure your success, is setting goals. Many people, however, fail to recognize the importance of this activity, and tend to pass it over as unimportant. But nothing could be more vital to your success than learning how to properly set goals.
As I mentioned in the secrets to success section, one element that all successful people have in common that is responsible for their success, is that they set specific goals and devised a plan for achieving them. This means that they were able to determine exactly what it is they wanted, and knew how they were going to get there.
There are 3 basic types of goals. They are:
- Improvement goals – Things that we want to change or make better. Lose weight, quit smoking, have better relationships, etc.
- Achievement goals – Things that we want to accomplish. Top salesperson, greatest golfer, best teacher, etc.
- Financial goals – Things that we want to acquire. Making a million dollars, being financially independent, cars, homes, etc.
Ask a majority of people about their goals in these areas, and they will typically give some vague, general answer. If it’s an improvement goal, they may tell you that they want to lose weight. While they may be able to lose weight without a clearly defined goal, their chances of really succeeding long-term are slim until they specify how much weight they want to lose, and devise a plan for how they are going to do it.
If you don’t know where you’re going, how will you know when you get there?
The keys to effective goal setting are:
- Be specific about your goal. State exactly what you want. Instead of just saying I want a new car, state “I will have a ’98 BMW 740i, white with tan leather interior, chrome wheels.”
- Set a date for reaching this goal. “I will have it by Nov 5, 2010.”
- Devise a plan for reaching the goal. “Thru real estate investing, I will acquire at least 2 income-producing properties a month that will create a net cash flow of $300 per month each, and I will buy at least 1 property per month that I can fix-up and resell for a $10,000 profit.”
- Indicate where and with whom you will have/accomplish this goal. Who else will be involved and/or affected?
THE 7 KEYS TO ACHIEVING YOUR GOALS
Once you have written down your goals and developed a clear idea of what you want, you still have to get there.
I have put together what I consider to be the 7 keys to achieving your goals. These are the crucial elements from start, to implementation, to achievement of your goals, that everyone must do in order to make them a reality. Again I want to emphasize how important it is to put into action the information that I am giving you here, it is vital to your success. Please don’t take it lightly.
- Desire – It all starts with a dream, a desire to have or accomplish something. If you don’t want it, then why bother going after it?
- Belief – In order to accomplish/acquire something, you must possess the beliefs that it is achievable and worth pursuing. That reaching this goal does not conflict with your values. That no one will be harmed or adversely affected by it. And lastly, you must possess the belief that you are capable of achieving it, and that you can learn whatever is necessary to accomplish it.
- Knowledge – You need to acquire the knowledge and information that you will need to know in order to do, accomplish, or achieve whatever it is you are attempting. This means learning the “how-to” of what you are wanting to do. You will also need to read about, listen to, and/or model someone who has already done what you wish to accomplish in order to learn the mental strategies that are necessary to accomplish this goal.
- Opportunity – The opportunity must exist for you to take action. Is this something that you can do now? If not, when? Are there external (or internal) factors that are getting in the way?
- Vision – In order to accomplish the goal, you must have a clear idea of what it is that you want, and create a compelling internal representation in your mind that you can “see” vividly. You can also use external pictures of your goal that you review daily. The better you can visualize your goal and its achievement/accomplishment, the better your chances of getting it
- Planning – Devise a concise plan for the achievement of your goal setting long-term, short-term, as well as daily goals. Also implement the use of a dayplanner type system to help you plan your time and to “track” your progress towards its achievement.
- Commitment – Stick to it, no matter what. You must be prepared to do “whatever it takes” (without hurting anyone) to accomplish your goal. Use vision and planning to create such a great picture of your goal that you fall in love with the thought of its accomplishment. Post the following statement up on your bathroom mirror and recite it to yourself every morning.
“I will not give up, no matter how many obstacles I encounter, or how much pain I endure. Because these things are nothing compared to my desire to succeed.”