Wholesaling real estate can be daunting, especially for those who feel nervous about negotiating with homeowners. This blog post delves into the journey of Steve Howell, a successful real estate wholesaler who transitioned from a nine-to-five job to complete financial freedom through wholesale real estate. Steve shares invaluable insights from his experiences, including his first deal, the challenges faced, and strategies for success.
Introduction to Wholesaling Real Estate
Wholesaling involves finding distressed properties, getting them under contract, and then assigning those contracts to investors for a fee. It's a strategy where you don't actually purchase the property yourself. Instead, you act as a middleman between the seller and the investor, earning a finder's fee for your efforts. You are a facilitator to the deal and thus will get a wholesale fee for it.
Steve Howell's Journey
Steve Howell began his real estate career in 2009 while working at a call center for Fidelity Investments. Over the years, he has completed hundreds of deals. Let's explore the key lessons Steve learned during his early years in the industry and how you might gain financial freedom through real estate.
First Deal: The Nerve-Wracking Experience
Initial Steps and Earnings
Steve's first deal earned him $2,500, a modest start in northern Kentucky. Like many beginners, Steve used bandit signs to attract potential sellers. Despite the low earnings, this initial deal provided him with proof of concept.
Finding the Seller
The property in Steve's first deal was inherited. The seller, overwhelmed by the inherited property's condition, responded to Steve's bandit sign, seeking a quick sale.
Making the Offer
Back in 2009, Steve followed the "70% rule" to make offers. Despite his nerves and lack of experience, he managed to get the property under contract and assign it to a local investor, splitting the assignment fee.
Overcoming Nervousness
Steve emphasizes the importance of empathy and genuine concern for the seller's situation. Building rapport and understanding the seller's needs can make a significant difference in closing deals. Confidence grows with experience, but it's crucial to trust the process and act even when feeling nervous.
"One of the keys to overcoming nervousness is to act like you're helping a relative. Trust the process and do everything in your power to get the deal done."
Progression in Real Estate Wholesaling
Building Relationships
Between 2009 and 2011, Steve built relationships with experienced investors. By leveraging their knowledge and experience, he improved his deal-making skills and increased his earnings.
Niche Focus: Probates and Inherited Properties
Steve noticed a trend with inherited properties and probates, leading him to focus on this niche. This focus helped him to secure more deals, providing sellers with a hassle-free solution.
Scaling the Business
Transitioning from a Job to Full-Time Wholesaling
In 2011, Steve left his job at Fidelity Investments and began wholesaling full-time. Collaborating with experienced investors allowed him to scale his business, completing numerous deals without even visiting the properties.
The Importance of Systems
Steve attributes his success to building robust systems for acquiring properties. Cold calling, direct mail campaigns, and leveraging SEO were critical components of his strategy.
Present and Future Plans
Current Operations
Steve continues to run a lean operation with a small team, completing several deals a month. He also spends a significant amount of time mentoring new wholesalers, helping them navigate the challenges of the industry.
Future Goals
Steve aims to acquire more rental properties, using his wholesale deals to cherry-pick the best investments. His goal is to acquire two to three rentals per year, providing long-term financial stability.
Conclusion
Wholesaling real estate can be an incredibly rewarding venture, both financially and personally. Steve Howell's journey from a call center employee to a successful wholesaler highlights the importance of persistence, empathy, and continuous learning. Whether you're a seasoned professional or a newbie, these principles can guide you in achieving success in real estate wholesaling.
For more insights on real estate wholesaling and overcoming objections, listen to Episode 138 of the DealMachine Podcast. If you're eager to start your wholesaling journey, check out Steve Howell Mentoring for personalized guidance and mentorship.
