Wholesaling is a niche that fascinates a lot of new investors – and it's easy to understand why.
Over the past few years, I've had some minor experience with assigning contracts to other buyers, but I've struggled to develop this part of my business to the point where I had a solid, repeatable system that could churn out deals on a consistent basis.
I've always understood about 90% of how to assign contracts and do simultaneous closings, but there have been a few lingering questions (“gaps” in my understanding, if you will) about how the mechanics are actually supposed to work – and how to consistently generate enough volume to make this a sustainable business.
I've actually done a lot of research on the subject of wholesaling, but like a lot of things in the real estate world – there is an abundance of “experts” all over the internet who love to dish out overly simplified explanations of how this business is done. Whenever I've tried to follow the directions from these people (many of which seem to contradict each other), they either didn't work, didn't make sense, or there was something fundamentally wrong with their approach. As I've tried to piece the wholesaling puzzle together, these kinds of inconsistencies have made a confusing subject even more confusing.
Enter Braden of WarriorWholesaler.com
A few weeks ago, I stumbled across a discussion on the BiggerPockets Forum about the subject of wholesaling (a topic that gets quite a bit of air time).
I noticed a guy named “Braden C.” who was speaking with a lot of knowledge and authority about how the business of wholesaling is done. I started asking him questions – and as our conversation went deeper, he really seemed to know what he was talking about. All of his answers lined up, seemed logical, and made sense.
Once I realized that I was talking to the real deal – I thought it would be helpful to take 30 minutes and ask Braden some of my most pressing questions, and to record the conversation so that YOU can hear what he has to say as well. Braden was okay with it – so here it is… have a listen! [youtube=http://youtu.be/gm_uf9r-8dg]
In this conversation with Braden, we cover the following questions:
- Can you give us a quick overview (in 30 seconds or less) of what “wholesaling” is?
- How did you get into wholesaling? What made you pick this niche of real estate, and how did you learn to get so good at it?
- In your opinion, what is the biggest misconception that beginners have about wholesaling?
- Can you give us an idea for what your typical pay-day looks like from one of these projects?
- How much time does it take for you to work an entire wholesale deal from start to finish (how many hours of actual “work” per “paycheck”)?
- What has been your most effective strategy for finding sellers who are willing to sell at prices that are low enough for you to make a profit?
- My understanding is that when you are assigning a contract like this, you can only be working with cash buyers (i.e. – investors who don't need to rely on bank financing). How exactly do you find these people? Are there any methods or techniques you can share?
- How important is it to have good sales/negotiation/people skills in this business?
- If people are watching this right now and they feel that sales/negotiation ISN'T one of their strong suits, do you have any tips or ideas for how they can get better and/or more comfortable with it?
- When you're making offers to the various sellers you work with, how do you come up with these offer prices? Do you just lowball it, or is there some complex equation you use to come up with this number?
- Being the middle man in these transactions (and knowing how much you can make in your role), how common is it for either your buyer or seller to go behind your back and try to avoid paying your assignment fee? Is there any safeguard for this kind of thing?
- Do you ever have buyers or sellers who question the kinds of profits you're making on these deals? Do they even know how much you're making, and is there a way to keep them from finding out about this information?
- At what point in this process do you actually get paid, and how often do deals fall apart before you actually get to this point?
- What would you say is the most difficult part about wholesaling?
As part of this interview, Braden gave me the chance to test drive his course and see first-hand what it was all about – and I can tell you with all sincerity that it was extremely helpful. He leaves no stone unturned – and if you have questions pertaining to a specific situation that you're working on – you can email him directly and he will respond! This guy knows what he is doing.
If you need someone to show you the ropes as you're getting started – Braden can fill in all the blanks and help you understand what you need to know. My only regret is that I didn't have access to this kind of resource five years ago. Unfortunately, it's not easy to find a REAL wholesaler who actually knows what they're doing. There are a lot of half-truths and incomplete information splattered all over the internet – but there aren't many people who can explain 100% of the business and give legitimate answers to your deal-specific questions.
If you've been looking for some reliable direction on how to jump into the business of wholesaling – check out Braden's course at WarriorWholesaler.com.