Is this right??

[bindalinda21]

     Okay, I have read alot of postings in the carlton sheets forum where folks are asking for some sort of advise on whether they should get into this type of investing or that type.  Well I've noticed regardless of which kind of investing they were thinking of getting into, there all had somebody(s) telling them that in a nut shell Wholesaling is the way to go.  Like the vast majority said in some way or another that this is the sure shot, quick way to making profits with less risk.
     I am a newbe and I haven't really looked into wholesaling that indepthly.  I just read one of the investing articles on it to try and get just a basic understanding of it.  This is what I gather:  You go out and find yourself some motivated sellers, then you make a contract to purchase the home, then you go out and find yourself a buyer(or I guess this might be what all the articles about buyer's lists pretain to),then you pretty much play like middle man between the two depending on how the situation arises, you can be involved with the title of the property or just have it go from seller's hands to the buyers? right?  Am I on the right track here, is this pretty much how that works??
     I'm kinda confused where this whole wholesaling thing comes into play...  See at first I was kinda thinkin' that there was some like flea market type shin dig going on where you can go get properties for 70% of their market value.  Okay I guess I was way off base with that whole notion. So what do you negotiate with the seller the buying price and such and then make a contract to purchase it, and then turn around and say hey buyer buddy I've got this house where you can make a buck and they either take it or leave it.  I guess after that all there is to do is seal the deal type thing.

     Is this why alot of poeple have posts asking why not just jump right into wholesaling vs. bird dogging.  I guess if your gonna go half way there then ya might as well go the whole mile.  On the other hand I guess it really just depends on how deep in the transaction/ buying part of the deal you wanna go.

Okay sorry bout going on forever there, but could someone tell me if I am understanding this correctly.  I know there is a whole lot more to know about it so if anyone has any advise on books/crash courses that are worth taking a look at I'd really appreciate it.  I'm more confused as to where the buying it at a discount comes from/in then the actual process of the sale.  Thanks in advance!!
                                                   Bindal

[Jeff Adam]

Bindal:
You are on the right track!  Remember, a wholesale property is basically any deal that is 70% of market value or less.  Most wholesalers purchase properties at 60-65% of market value and wholesale to other investors at 65-69% of market value.  Make sense?  

The key to being a successful wholesaler is educating yourself.  I would recommend the following resources:

-Ron Legrands wholesale/retail course - buy it on E-bay
-John Cash Locke's  course - but it on this site
-Join your local  REI Club.

Remember,  if you wanted to be a doctor, you would go to school right?  The same goes for being an  investor.  As a wholesaler, you can make more money than a doctor.  My investor friends that are wholesalers make $20k -$30k a month, more than most doctors!


Best Riches,
Jeff Adam

[WilsonTaylor]

Bindalinda,

You are correct in your understanding of wholesaling.  The reason that there are so many recommendations to start off in wholesaling is that you don't need cash or credit to do so, but you can build both to get into the higher paying areas of RE.

Wilson