Navigating the world of real estate wholesaling is often a journey marked by dedication, perseverance, and strategic partnerships. For those looking to transition out of their 9-to-5 jobs into real estate, wholesaling presents a viable pathway. In this blog post, we delve into the story of Chris, who made $18,000 on his first wholesale deal in Boise, Idaho, and share crucial insights for aspiring wholesalers.
Understanding Wholesaling Real Estate
Wholesale real estate involves finding distressed properties, securing them under contract, and selling the contract to an investor for a fee. It's a strategy that doesn't require you to actually purchase the property but rather act as a middleman between the seller and the investor.
"The business model of wholesaling real estate enables individuals to build skills and earn money by finding a rundown house, getting it under contract, and passing it to an investor for a finder's fee."
Chris's First Deal
Chris, an ambitious wholesaler, secured his first deal in Boise, Idaho, netting $18,000 with the help of a Joint Venture (JV) partner.
The Journey Begins
Chris discovered this opportunity through diligent marketing efforts. He was initially handwriting letters and cold calling, eventually pulling a code violation list from Ada County. The process required patience and persistence, as repeated follow-ups were necessary to get the potential seller to engage seriously.
"I was handwriting letters, cold calling, and following up every month until the seller was ready to take offers," Chris explained.
Closing the Deal
After months of persistence, the seller, originally from San Diego, decided to sell the property. Chris smartly partnered with a more experienced wholesaler from the "Talk To People" (TTP) community, splitting the assignment fee but gaining invaluable insights into the process.
“It was either a little bit of something or nothing at all. Partnering with someone was a great way to learn how things are done.”
Lessons for Aspiring Wholesalers
Start with Self-Made Efforts
Chris emphasized the importance of doing the hard work yourself initially. Cold calling and handling leads give you a deep understanding of the process, making it easier to oversee hired help later on.
"I think it's smart to do the calls and the hard work yourself initially; otherwise, you're kind of lighting your money on fire if you don't know what you're doing."
Leverage Communities and Partnerships
Partnering with experienced wholesalers can reduce the risk and increase your understanding of the industry. In Chris’s case, the TTP community was instrumental in finding a reliable JV partner.
Adapt and Overcome Challenges
Chris had to adapt his strategies based on feedback and results. For example, he initially faced challenges with being unable to personally visit properties in Boise, leading him to shift his focus to his local San Diego market.
“I was losing deals because I couldn’t go to the people’s home in Boise, so he suggested I try San Diego instead.”
Consistent Effort Yields Results
Wholesaling, like most ventures, is a numbers game. Consistent effort in cold calling and follow-ups is crucial. Chris made around 1,000 calls a week, managing to balance this with his full-time job and family responsibilities.
“It’s hard and discouraging sometimes, but if you want it, you just have to do it.”
Strategic Use of Tools and Technology
Chris utilized various tools like dialers to streamline his calling process. Paying attention to metrics, such as call responses and follow-up tags, allowed him to keep track of progress and optimize his strategies.
Customization for Efficiency
Chris mentioned how certain tweaks, like triple calling numbers and tracking call status, helped in refining his workflow.
“The triple tap strategy involves calling the same number three times in a day with voicemails at the end, then reducing the frequency over subsequent days.”
Building Momentum
As Chris continues to navigate his wholesaling journey, his story highlights the gradual but sure-footed progress one can make with consistent effort, strategic partnerships, and adaptability.
Final Thoughts
Chris's journey underscores the importance of persistence, community support, and continuous learning in wholesaling real estate. For anyone looking to break into this industry, starting with hands-on efforts, leveraging supportive communities, and adapting strategies based on feedback can set the foundation for success.
If you're inspired to follow in Chris’s footsteps and aim for financial freedom through real estate wholesaling, remember the key takeaways: start with self-efforts, build strong partnerships, and stay relentless in your pursuit.