Wholesaling is an excellent way to get into the real estate investment business. But like any new business or career, there are a few steps that you will need to follow to build a solid foundation for years of success. We have broken the process down into four simple steps that will guide you through the process of becoming a successful and profitable real estate wholesaler.
Step 1- Study
Everyone wants to be successful and appear professional at their job. But sadly, few of those people are willing to invest the necessary time to studying their craft or industry. Real estate investing is not as simple as many people make it sound. And the more information and knowledge that you bring to your first few deals, the higher your potential for success and profit.
The good news is that studying the wholesaling business is not going to be all dry reading from a textbook. Watching podcasts, reading blogs, viewing webinars, and attending local industry functions and meetups are all great ways to increase your knowledge and understanding of what goes into making a great wholesale deal.
Step 2- Network
We touched on this in Step 1, but here are more details to help you get the most out of your time and effort. Business cards are not a thing of the past. You need to have a massive quantity and pass them out like they were free to have printed. You want everyone to know who you are and that you are now in the real estate wholesaling business. You are THE person for all of your friends, family, and acquaintances to call when they hear about a great real estate deal or know someone who is desperate to sell a property.
The places that you choose to network in person can range from local real estate meetups to open houses. And don’t forget to use social media to increase your reach. Join Facebook groups for real estate investors, comment on blogs and websites, and reach out to bankers, title companies, and lawyers. These are professionals who might have leads for you in the future but will also provide services that you will need during your transactions.
Step 3- Marketing
Marketing is the critical piece of this puzzle. There are many ways to get your name out to motivated sellers, and you need to take part in as many as you possibly can. Driving for dollars, ads on Craigslist, and social media posts are all free, except for the time you will invest. Bandit signs, ads in the newspaper, and online paid ads are all very affordable options to blend in with your free advertising. A direct mail campaign is an excellent way to reach thousands of potentially motivated sellers without ever leaving your office if your budget allows.
The effort you put into your marketing will be the one factor that has the most significant impact on your number of leads. So take advantage of every opportunity that you can, with the understanding that it will take some time to find and close that fantastic first deal. But then with each new lead and new sale, you will find that your success is growing more rapidly than you ever expected.
Step 4- Systems
The systems that you create for your new business are going to be the foundation that allows you to scale in the future. Marketing is one of your most important activities. And it needs to have a very detailed and well-planned set of processes. Your marketing system is what will generate your leads and become the fuel for your business. Ensure that you have a schedule for each marketing process and that you remain consistent to ensure the best results.
It can be helpful to carry around a notebook for a few months to make lists of all of the tasks that you are completing. Then evaluate the tasks and determine if there is a better way to accomplish them or reach your goal. Once you have created what you believe to be the best processes, finalize your standard operating procedures. This will be the set of documents that you can pass along to new employees as you begin to grow your business and your wholesaling team.
These four steps will get you on the path to success in real estate wholesaling. But the level of success that you reach will be a direct reflection of your desire and effort to invest in your business and achieve your financial independence.
