Dont know what to do

[Supreme]

I want to get into the real estate business by first starting out flipping wholesale properties. I dont have any money at all, or credit. Everybody is telling me to come back when I have at least a couple thousand dollars. I know theres a way in getting in the business without having a lot of money. I just dont know how.

[ChuckFromMichigan]

yes for your situation wholesaling would be one of the best if not thee best solution for you.. doesnt require credit or money its basically playing middle man with a buyer and a seller bringing them together and making a profit in between the sell... first get yourself a buyer found out what he's looking for and how much he's willing to pay. then find a seller that has a house that matches your buyers criteria put it under contract for less than what your buyer would pay(70% of ARV-repairs) then sell the contract to your buyer for a fee(assignment of contract)... theres a little more to that but thats the basics of it all

[nsu1997]

The marketing tactic that affords you the most leverage is direct mail, but to put a halfway decent direct mail campaign in motion will cost you at least a few hundred bucks. If you don't have that first figure out why you can't even put together a few hundred bucks and fix that...seriously.

Once you have that fixed, maybe you could start out doing cheap things like flyers, biz cards, bandit signs, driving for dollars, etc.

[javipa]

I want to get into the real estate business by first starting out flipping wholesale properties. I dont have any money at all, or credit. Everybody is telling me to come back when I have at least a couple thousand dollars. I know theres a way in getting in the business without having a lot of money. I just dont know how.

Supreme,

Have you picked a farm yet?

Have you settled on a deadline for achieving this goal?

Do you have alternatives laid out?

[Supreme]

I didnt know I have to be a middleman, I though thats what real estate agents do? I though I buy a property im interested in form a motivated seller. And sell the property by marketing. Im a complete noob, so I dont know what 70% ARV mean.

[nsu1997]

I didnt know I have to be a middleman, I though thats what real estate agents do? I though I buy a property im interested in form a motivated seller. And sell the property by marketing. Im a complete noob, so I dont know what 70% ARV mean.

You're not ready to start yet. Check out some books on wholesaling and get the fundamentals cold first. Also I highly recommend listening to every podcast at flip2freedom.com starting from #1 (it's free).

[kdhastedt]

I didnt know I have to be a middleman, I though thats what real estate agents do? I though I buy a property im interested in form a motivated seller. And sell the property by marketing. Im a complete noob, so I dont know what 70% ARV mean.

If you don't have any money or credit, how will you:

(1) Buy property you are interested in?

(2) Pay for marketing?

(3) Find the leads to get the property?

(4) Pay for the closings?

I don't believe there is a way to do absolutely free transactions regularly.

Keith

[javipa]

Supreme,

I didn't assume that you had little to no understanding of the basics.

Your challenge does not start with being ignorant about wholesaling with no cash or credit.  Your challenge is not understanding wholesaling in the first place.

You need to get at least a working knowledge of what wholesaling is, and what it is not.  And then worry about the money/credit solution later.

[Supreme]

I know a little something about wholesaling from the information I got from the articles i read. I know im ready Im just having a hard time figuring out the math. Theres a property  in my neighborhood that is for sale for 239,000. Can one of yall just walk me through the process because maybe I'll understand it if yall explain it to me. I want to get this property before anybody else. 

[Supreme]

My main issue is funding. How could I get a lender to fund me some money. Should I get a transactional funding, or should I get a private money lender. Im only 19 so I dont want lenders to disapprove me because they might feel as if I dont know what im doing. Wholesaling is not hard I just need a lender to loan me money and  people to work with me. This is tough when your doing it by yourself.

[javipa]

My main issue is funding. How could I get a lender to fund me some money. Should I get a transactional funding, or should I get a private money lender. I'm only 19 so I don't want lenders to disapprove me because they might feel as if I don't know what I'm doing. Wholesaling is not hard I just need a lender to loan me money and  people to work with me. This is tough when your doing it by yourself.

I hate to be rude sounding, or insensitive, but your 'main issue' is NOT funding.  Your main issue is that you don't have a grasp on what is wholesaling.  I mean you just posted that you didn't have any idea what '70% of ARV' meant, and then... you just got through saying that, "wholesaling is not hard."

Which type of wholesaling is not hard?  I want to know, so I can switch over.  Really.
 
As far as age goes, you've already mentioned the major obstacle, and you're exactly correct about that concern.  And that's partly why I've suggested that your first move is to learn 'what' wholesaling is, not how to finance "wholesaling."

At this point your attack strategy is bass ackwards... Not to worry, anything worth doing is worth doing badly.  Eventually you'll get it turned around, if you don't give up first.

 

[nsu1997]

I know a little something about wholesaling from the information I got from the articles i read. I know im ready Im just having a hard time figuring out the math. Theres a property  in my neighborhood that is for sale for 239,000. Can one of yall just walk me through the process because maybe I'll understand it if yall explain it to me. I want to get this property before anybody else. 

You say you're ready because you've read a few articles? You want someone to loan you money to do a deal but you have no credit, no expertise, no experience, and can't even put together a few grand? Javipa is right as usual...no...you're not ready. You don't even know what ARV means. That's one of the basics of the business.

You're correct in that wholesaling is a very simple concept however it is not easy to find great deals at wholesale prices. If you don't even know what a deal is then you're completely unprepared to start taking action because all you'll do is waste money, piss people off, ruin your credibility with rehabbers, get discouraged, and probably make somewhat of a mess.

For example you say there's a house in your neighborhood for sale for $239k...ok what does that mean? Is that a deal? Are they motivated? Will they seller finance? You didn't provide any other facts on the house such as repairs needed, property condition, etc.

Go back and do what I said earlier in this thread. And take notes. You are young, and I wish I got started at your age...but fact is you don't have any idea what you're doing at this point.

[nsu1997]

One more thing....you wanna know how I got started in this business? I had little money but I had a burning desire to be successful, so I went on Ebay and bought an old, used Ron Legrand course. I absolutely wore those CDs out. Here we are 6 years later and if I put one of those CDs on I bet I could probably recite word for word what Ron Legrand was gonna say before he even said it.

See where I'm going with this...you gotta immerse yourself into something before you can ever hope to be proficient at it.

[Supreme]

ARV is the after repair value. I knew what it was I just didnt know there was an abbreviation for it lol. Im having a slow day today.... I sit in my room day n night for the past two weeks reading about real estate and flipping properties. I may not be an expert but I know enough to at least get started. If you guys read some of the wholesaling articles on this website you would know that you dont need down payments or good credit to get started, although it may help its not essential when wholesaling. I know a private lender who would fund me 100 of my finances including rehabbing (if its needed). I havent talked to the owner so I really dont know if s/he is a motivated seller but the property is on for sale. All I got to do is make an offer on the property, and if the owner accepts, then I would get him to sign the purchase and sale contract. From there I need to show the private lender that this is a good investment, and the only way I could do that is to show them the math. Now that I found my funding, figuring out the math is the main thing I need to do right now. If I could at least get this first deal done the rest will be history.

[Mdhaas]

  

All I got to do is make an offer on the property, and if the owner accepts, then I would get him to sign the purchase and sale contract. From there I need to show the private lender that this is a good investment, and the only way I could do that is to show them the math. Now that I found my funding, figuring out the math is the main thing I need to do right now. If I could at least get this first deal done the rest will be history.

That's all there is to it? Go figure.