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.
Okay I got a house – Now what?
Now you are ready to start building up your cash. You can either flip your deals to an end buyer or assign your contracts over to them for a fee. Or you can simply assign your deal to another investor for a fee. You can then take the cash you make and put that away in your reserve fund until you get enough saved up to rehab and retail your own deals.
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.”
About the Author
Glen Gallucci actively buys, rehabs and sells residential properties. From the trenches, and with his down to earth “tell it like it is” format, his business experience proves invaluable for the beginner as well as the seasoned investor regarding the successful structure of a wholesale or rehabbing business. Glen is also a board member of the Garden State Real Estate Investment Association in New Jersey.
RENOVATE NEW JERSEY PROGRAM
The Renovate New Jersey Affiliate Program systematically trains you to become a highly profitable wholesale or referral affiliate, turn-key investor and private lender by effectively locating, renovating and financing distressed properties in New Jersey. After being properly trained you will possess all the necessary skills to make big profits from each and every deal you locate, renovate or finance.
To effectively take advantage of all the essential material that is part of the RenovateNewJersey.com Affiliate Program, we have split it up into 5 intensive days. Don’t worry, by the 6th day, you will have been supplied with the knowledge and resources to start immediately.
Day 1 – Wholesaling Houses – Volume1
Day 2 – Wholesaling Houses – Volume 2
Day 3 – How to Buy Foreclosures
Day 4 – Buy Foreclosures for Profits
Day 5 – Quick Summary Guides & Reports
Where to Find Great Wholesale Deals
There are dozens of sources in your area waiting for you or anybody with the knowledge and skills to solve their problem. And they’re more than willing to let you make money doing it! Here are some sources you can find in your own hometown that will kick in the afterburners on your flight to financial success in real estate:
Real Estate Professionals
If the whole idea of dealing with a seller face-to-face or even on the phone just sends cold chills down your spine, you can always make your offers though a professional real estate agent or broker. For that matter, you can structure your deals so that all contact with the seller and with the buyer occurs through an agent. What? Use a real estate agent and still make money? Yes.
Why do the things you don’t want to do? That makes it too much like a Job. Do the things you enjoy, and learn to let others do the parts that you don’t enjoy, or the parts that are too time-consuming.
Realtors can help you in ways that you’d never think of. The incredible legwork and computer research and negotiating and digging these folks can do can save you tons of hours of work.
Getting Great Deals To Come To You
There are other sources of deals, but I learned early on it was much better getting the deals to come to me when ever possible. I’m referring to creative marketing techniques that do the work for you.
In my opinion, this is one of the most vital and overlooked parts of most businesses, including real estate. The on-going flow of the business is generated right here. For example, remember classified ads? Well, reading ads and calling these sellers is just one great way to find properties. They’re looking for a dealmaker. Someone like you!
So, what if you could have them so interested, that they’d call YOU up instead of the other way around? Well, why not? I mean, would you rather spend a couple of hours calling sellers cold from ads you read in the paper, or take calls from people who already have decided that they want to sell to you?
So, let’s just say that, in addition to reading the classifieds and calling a few sellers, we also run some small ads with our own trigger words. Some terms like: “I buy houses”, and “fast closings”; or, maybe, “cash for your house”, or, “save your credit”; “any condition/any price” is a good one, too.
Don’t just stop at ads, although these alone are enough to get your phone ringing off the hook and a buyer/seller list filled up real quick. You can use several other methods like…
Flyers: These are along the same lines as your ads, but with a little more detail. They don’t have to be extremely fancy, just have your local quick-printer help you out. Then hire some kids to put them out in neighborhoods. You know, 200 or 300 a week or so. You’ll be amazed by the results. I have had sellers call me up from flyers two and three months old. It’s simple and it’s cheap.
Business cards mean business in your pocket: Why not tell what you do on your cards? Use the front and the back. Again, use the same ideas as in the classified ads you’ll be running. Pass them out to everyone. When you talk to real estate agents, give them several. Pin them to bulletin boards. The more you get out there the more you have opportunities knocking on your door.
Letters to tell your story: When I see an overgrown house or a vacant house, or find out that someone out-of-town is involved in a piece of property (renting or selling), I like to send them a letter. It’s a simple form letter, but in it I let them know that I’m a Real Estate Investor and that I buy houses and if they are interested in or considering selling the property, please contact me. I include some of the key phrases we’ve already discussed, like “quick closings”, “cash for your house”, etc.
These are just a few of the excellent resources and techniques to get great deals and build up an inventory of houses to turn for instant cash income. Naturally, the more of these methods you use, the more houses you’ll find. There’s just not the space in this single report to cover all of these in detail.