5 Steps for Getting Started with Real Estate Wholesaling

Justin and Sarah Pilotte Mar 31, 2024

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Table of Contents

Step 1: Educate Yourself
Step 2: Build a Strong Network
Step 3: Research Your Market
Step 4: Find Off-Market Deals
Step 5: Close Deal
Conclusion
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Greetings to Real Estate Investors,

This is Justin from Pilotte Property Solutions. In today’s article, I will explore five steps that can help you launch your venture into real estate wholesaling. While this brief article touches only on the essentials, following these steps can set you on a path to success in your journey. Given time and perseverance, there are no limits to what you can achieve.

Educate Yourself

Step 1: Educate Yourself

It's crucial to educate yourself about the basics of real estate wholesaling. This initial step will help you understand the terminology, concepts, and strategies involved in this field. Here's what you can do to start

Read Books and Blogs: There are plenty of books, blogs (Like this one), and online resources dedicated to real estate wholesaling. These materials can provide valuable insights and tips.

Take Online Courses: Many online platforms offer courses specifically designed for beginners in real estate wholesaling. These courses cover the fundamentals and walk you through practical scenarios.

Join Real Estate Forums/ Groups: Participating in real estate forums and communities allows you to interact with experienced wholesalers who can provide guidance and answers.

Network with Local Investors: Attend local real estate investment meetings and network with experienced investors. They can offer hands-on advice and mentorship.

Networking

Step 2: Build a Strong Network

Networking is an important element in real estate wholesaling. Having a network of reliable contacts can help you find deals, buyers, and potential partners. Here are some steps to establish your network:

Real Estate Agents: Connect with local real estate agents who can provide you with access to their MLS listings and share off-market deals.

Investors: Build relationships with other real estate investors. They may refer potential deals your way or partner with you on wholesale deals.

Contractors: Establish connections with contractors who can help with property inspections and renovations if needed.

Real Estate Lawyers: Contact lawyers in your area and develop relationships with them.

Mentors: Seek out a mentor or someone who has had some deals under there belt

Market Reserach

Step 3: Research Your Market

Understanding your local real estate market is essential for successful wholesaling. Conduct thorough research to identify areas where you want to focus your efforts. Consider the following aspects:

Property Types: Determine the types of properties you want to wholesale. It could be single-family homes, multi-family units.

Neighborhoods: Identify neighborhoods with potential for profit. Look for areas that have stability and growth.

Property Values: Understand property values in your chosen market. This will help you determine the profit margins. There are lots of software to help with this aspect, I personally use RentCast to help guide me in the right direction. Check out my article "4 steps to easy property analysis with RentCast" for more information. I also Use DealCheck for property analysis, you can read more about it with "Mastering DealCheck".

Check out my Resource Page for some of the top software to help you on your Real Estate Journey

Step 4: Find Off-Market Deals

One of the key advantages of real estate wholesaling is the ability to find off-market deals. These are properties that aren't listed on the Multiple Listing Service (MLS) and can offer better opportunities for wholesalers. Here's how to discover off-market deals:

Direct Mail Campaigns: Send out mailers to property owners expressing your interest in purchasing their homes. This can lead to potential off-market deals.

Drive around: Physically drive through neighborhoods to spot distressed or vacant properties. You can then contact the owners directly.

Door knocking: Once a person answers the door they don't want to see someone trying to sell them, people generally will talk if you come off just interested in there home. If they are interested in selling and you don't come off to pushy they will give you some time.

Online Resources: Utilize online platforms, such as Craigslist or For Sale by Owner (FSBO) listings, to find properties that aren't listed with agents.

Wholesale Contract

Step 5: Close Deal

Once you've identified a potential off-market deal, it's time to negotiate and close. Here are some important steps to follow:

Evaluate the Property: Assess the property's condition, estimated repair costs, and market value to determine your offer price.

Negotiate with Sellers: Negotiate with the property owner to agree on a purchase price that allows room for your wholesale fee.

Create a Purchase Agreement: Draft a clear and concise purchase agreement detailing the terms of the sale.

Find Buyers: Market the property to your network of buyers and other investors. Once you have an interested buyer, you can assign the contract to them for a fee.

Close the Deal: Work with a title company to handle the closing process. They will ensure all paperwork is completed correctly and the transaction is legal and smooth.

Conclusion

Remember that this blog is a vague explanation on wholesaling. We will be releasing further information breaking down different aspects of wholesaling and other real estate strategies.