You need to learn this skill in order to know how to put money in your pocket fast. I have found that with new real estate investors, that the more time that goes by without making any money, the more likely they are to quit. In fact, this is what the vast majority of new investors do (quit).
So the goal is to put some money in your pocket as fast as possible. You can do this by learning how to wholesale real estate and flip houses to other real estate investors. I like to teach new investors how to do this, because this is exactly how I started out in real estate. I spent my first two years working for two real estate investors as a bird dog (deal finder). I got paid a finders fee for every house that they purchased. This is the best way to start out and what I highly recommend. And the reason for this is very simple. You need to learn how to find wholesale deals. Once you know how to find wholesale deals consistently (and flip them to investors for a profit) then you can move up to keeping some of those deals for yourself (as fix and flips or rentals).
Learning how to wholesale houses to other investors, allows you to learn without risking any of your own capital (or credit). As you get better at finding wholesale real estate deals, you will start flipping more and more houses to other investors. When this happens you will start making some good money, and you will be able to start saving up those profits from your wholesale flips and increasing the balance in your bank account. As your savings grow, so do your opportunities. You will be able to invest in rentals and fix and flips once you have some money saved up. But when you start out, I suggest you learn by finding deals for other investors.
When you have money saved up, you can cherry pick your wholesale deals, and you can decide which houses to wholesale and which houses to fix and flip (or keep as rentals). If you want to create a life of financial freedom, my suggestion is that you try and buy at least one rental property per year. If you can own 50 houses free and clear that pay you $2,000 per month in rent, then you will have $100,000 a month coming in in passive income. That is how you create financial freedom. But before you can create financial freedom, you need to know how to find wholesale deals. And that is why I recommend that you start learning that skill first. And that is why you need to learn how to wholesale. If you learn how to find deals for other investors you have zero risk. And then as you make more money, you can transition into buying rentals and fixing and flipping houses.
Wholesaling real estate is a great way to start out. The reason for this is because if you learn how to find and identify good wholesale real estate deals at wholesale prices, then not only will you be able to flip these houses for a profit, but you will also learn a new skill that you can use forever as a real estate investor.
In this video above, I show you an example of a house that I recently wholesaled and flipped to one of my students for a quick profit.
My purchase price on this house was $130,000. I wholesaled (flipped) it to my student for a price of $145,000. I also gave my student a hard money loan to buy this house . My profit was $15,000. I never did anything to the house at all, and I sold it in the exact same condition as you see in this video. As I mentioned, This particular student was one of my coaching students who was looking to buy their first rental property. I gave this student a private loan so that they could purchase this property with only $20,000 down. I often do this with students that are looking to buy their first rental property.
So how did I find this house?
The way that our office got this lead was from a direct mail campaign. This house was purchased directly from a motivated seller from a postcard mailing using our caricature postcard (which shows a caricature sketch of me). The seller received our postcard and his son called in to our office and spoke with one of our Acquisitions Managers. The seller had owned this property as a rental for quite a few years, but the tenant had recently moved out and the owner was in his 80’s, and he wanted to sell the house and be done with it. He had his son call our office from the postcard he received and his son negotiated the price with our Acquisition Manager.
The After Repair Value of the house is $180,000, so by purchasing it for $130,000 we were definitely buying it at a discount. My student purchased this property for $145,000 and did not spend a lot of money getting it rent ready. He kept the cabinets and resurfaced them. He also kept the tile floors. His only work to this house was cleaning and painting, re glazing the bathroom tile, replacing the toilet and vanity and resurfacing the kitchen cabinets. After purchasing the property and renting it out, the goal is for the student to refinance their private loan into a conventional mortgage.
This is a typical transaction. It involves a motivated seller, a wholesaler and an end buyer. Now I could have kept this house for myself as a rental, but I chose to instead wholesale (flip it) for a quick $15,000 profit. If you can learn how to wholesale like this then you can start putting some money in your bank account.
Wholesaling is a great way to learn if you are new to investing in real estate.
I teach at my Wholesaling Real Estate Boot Camp twice a year in South Florida. To see when the next boot camp is, you can click on the “events” tab at the top right of this page.
For more information about our Wholesaling Real Estate Boot Camp click here
For more free real estate education and training tips make sure you check out my blog here
