Top 4 Common Questions from Beginners to Wholesaling, Answered

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on May 11 in BestTransactionFunding

Are you considering jumping into real estate wholesaling? Do you have questions and you're struggling to find the answers? Below, you will find the most common four questions beginners to wholesaling ask and the answers.

Is wholesaling illegal?

Most beginners start with this question or some form of this question. They think, it can't possibly be legal because it sounds too good to be true. After all, most of us were taught, if it sounds too good to be true, it probably is.

Real estate wholesaling is legal, but you do need to make sure the right verbiage is used on your contracts. Consulting an attorney for help with your contracts is always a smart idea.

How can I Find a Good Mentor?

Many new wholesalers want someone they can ask questions to, bounce ideas off of and someone simply to be there for them when they're not sure what to do. It's important to look for more than just a mentor. If you don't have value to bring to the table, they may not be interested in mentoring you.

Start taking action by putting out bandit signs, using direct mail marketing, cold calling or doing something else and you'll find a mentor. Better yet, your mentor will find you.

What do I say to a Seller?

New wholesalers often wonder what to say to a seller. You should actually be doing more listening than talking with the seller. Asking questions about why they are looking to sell, how they would like the sale to go and if there are any repairs needed, will help you gain the information you need.

How Much Should I Offer for a Home?

Figuring out how much to offer is a bit of a science and it will vary from one market to another. Usually, the formula is simply ARV x 70% - Repairs - Wholesaling Fee. This will give you the maximum you want to offer, but it could vary a bit depending on the market and how aggressive you want to be.

How Should I Find Buyers?

As a new wholesaler, you probably want to start building a list of buyers. You can start by using other local investors to help with finding buyers before you have your own list.

Building your own list can be done by using ads on Craigslist and a simple Google search for potential cash buyers in your area. You can also pull a report of all the real estate sales that were cash deals in your area. Those buyers are probably going to be your buyers, too.

 

These four questions are commonly asked by new real estate wholesalers. If you're planning to start wholesaling or you're very new to it, make sure you take the time to do your research, gain answers to your questions and build your confidence.

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

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