Welcome to the world of real estate investing! This detailed guide will walk you through the simple steps to secure your first wholesale real estate deal, accelerating your journey to financial freedom. This comprehensive how-to is broken down based on the insightful discussion between Ryan Haywood and David Lecko from the DealMachine Real Estate Investing podcast.
In 2019, Ryan Haywood transitioned from his 9-to-5 job to full-time real estate wholesaling, securing his first deal worth $8,500 in just two weeks. Since then, he has completed over 400 transactions. David Lecko created the software platform DealMachine that has facilitated the closing of 10,000 deals in the last seven years across all 50 states.
Wholesaling in real estate is a proven business model, and here's how you can get started:
The first essential tool for your journey is the DealMachine app. This software is designed to streamline the process of identifying distressed properties and connecting with potential sellers.
Begin by driving around neighborhoods to spot distressed properties—those that look worn down or neglected. Ryan and his wife Megan did this with their kids, turning it into a family activity. Their initial goal was to add 250 leads in the first week, but they managed around 300-400 leads in just a day!
Next, send postcards directly to the mailboxes of these distressed properties. This step initiates contact with property owners and starts generating inbound calls.
"We started sending the postcard, getting those people, getting postcards in those people's mailboxes... then the mail goes out, people are gonna get the postcards, they're going to call." - Ryan Haywood
Prepare for the inbound calls by lining up potential buyers. Look for real estate investor meetups, browse online forums like Craigslist and Facebook, and connect with realtors who might know investors. The first property that Ryan sold was facilitated by a realtor who knew investors interested in distressed properties.
Networking is crucial. Communicate with realtors, investors, and other individuals in the industry. Real estate is a business heavily reliant on connections, and the power of a good network cannot be overstated.
"The power of connections and finding a buyer is exactly how you're going to get the deal done very quickly." - Ryan Haywood
Once you have a system in place, repeat the process. Continue driving for dollars, sending out postcards, answering calls, walking properties, making offers, and signing contracts. The more you repeat, the better you get at it.
Starting out in real estate wholesaling can be daunting, but understanding and overcoming common fears can help in easing the transition.
Many newcomers are afraid to talk to homeowners about off-market deals. One way to overcome this fear is by gaining experience. David Lecko shared how buying his own home and renting out rooms to friends helped him understand the transaction process, which subsequently made it easier to talk to homeowners about off-market properties.
Another way to smooth your entry into wholesaling is by hiring a coach or joining a mastermind group. Learning directly from experts who’ve been through the process accelerates your learning curve and boosts your confidence.
Hiring a coach can be incredibly beneficial. Coaches provide guidance, support, and resources that can fast-track your success. For example, David Lecko has hired various coaches to improve his skills, and it significantly enhanced his performance and efficiency.
Ryan Haywood recently launched the Deal Flow Academy, a mentorship group aimed at helping newcomers build sustainable wholesaling businesses. The academy focuses on providing practical, actionable advice to ensure steady deal flow.
"The intent behind Deal Flow Academy is to help you build up the processes so you can have consistent deal flow." - Ryan Haywood
Wholesaling real estate can be a lucrative and fulfilling career path. By using tools like the DealMachine app, networking extensively, and possibly hiring a coach, you can overcome initial challenges and secure your first deal quickly. Remember, the key is to keep repeating the process and learning from each transaction.
For those interested in more detailed guidance and mentorship, consider joining the Deal Flow Academy to accelerate your journey to financial independence!