Steps on How to Develope A Real Estate Wholesale Business

STEP ONE:  Know Your Market -

Decide what area you want to wholesale properties in. Grade your market, analyze it. Then make a grid and mark those areas you have decided to buy and sell in.  One clue would be to pick an area that has plenty of investors buying in it, particularly landlords. If you need help with this, perhaps give a call to a local Real Estate agent or just start driving around and looking for a lot of "for rent" signs in the area.

STEP TWO:  Join Your Local Real Estate Investors Club or Association

Start by networking at your local real estate investor club meetings. Almost every major city has one or you can join the National Real Estate Investor Association.  If there is not a local REIA in your area, then start one. There are REIAs around the country that are two, three, four hundred members strong, where you go into a room that's several thousand square feet, and a big, big production. But there are also REIAs that are hosted at the local Denny’s and have, maybe, 20 guys, like-minded investors, that sit in the back of a restaurant and share ideas, share contacts and information that is really invaluable. It is critically important that you surround yourself with people who think the way you do, believe the way you believe. You will get a lot of value out of working together and that's what the REIAs are designed to do.

STEP THREE: DECIDE WHERE TO START - Choose one or more of the paths to Wholesaling (See step FIVE before you start creating a list of properties)

1. Buy and Flip - Buy property as it is and resell it
2. Buy, Refurbish & Rent - Buy property, fix it up, and then rent it for a steady cash flow
3. Buy, Refurbish & Sell - Buy property, fix it up and Flip it
4. Buy, Refurbish, Rent & Sell - Buy property, fix it up, get it rented and sell as a "Turn-Key" Investment.
5. Buy a "Turn-Key" Property - Buy a property that is fixed up and ready to rent so you get immediate equity, find a renter and start a "Cash Flow"
6. Buy a "Turn-Key", Cash Flow, Property - Buy a property that has been refurbished and already has a renter.  You get immediate Equity as well as immediate Cash Flow

STEP FOUR:  Create a solid business plan.

Wholesaling is not really real estate investing. You are simply hustling with your creative mind to make some quick cash. While a solid business system is still the key to being a good and profitable wholesaler you must reinvest your money into "cash flowing" properties or Tax Lien Certificates (the Lien Machine) that will earn you real money over time. Having your money earn money is the only way to becoming truly rich and it is the secret that only wealthy people understand.  Ask yourself this question: Can I stop working as a wholesaler today and still earn enough money to live my lifestyle? If the answer is yes then you have invested your money wisely. If the answer is no then you must continue wholesaling until you earn enough money to purchase solid cash flowing rentals and Tax Lien Certificates that produce enough yields so you can sit back and watch your money grow!

STEP FIVE:  For Paths 1, 3 and 4 - Create a List of Buyers -

Building this buyer's list is one of the most important steps you will take in your wholesaling career. Most people want to start with finding properties. By far the best method is to find your investor first then fulfill their needs by finding them a property.  You really only need a handful of experienced investors that don't have the time to spend hunting down great deals! These will be your pool of buyers.  

Suggested Methods you can use to build your list of buyers:

• Place an Ad on CraigsList.com or BackPage.com that say's "Investors Wanted...Local Property Wholesaler Selling Homes At Huge Discounts! Reply with Name, Phone Number, and Email Address".
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• Again, network at your local Real Estate Investor Club.
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• Another great source is social networking websites like Twitter.com, LinkedIn.com, CleverInvestor.com and Facebook.com to network online. Create a fan page and insert your email programs intake form so viewers of your page can join your list.
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• Sign up to get on other wholesalers lists and wait for them to accidentally send you their buyer's list.  It is also a great source to help you see what your competition is selling and how they deliver their emails.
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• Attend a local mortgage, tax foreclosure, or trustee auction and network with those bidding as well as those standing around observing. 

STEP 6 - BUILD A TEAM

• Find a professional closer - Someone who understands how to do wholesale real estate business.  They absolutely need to have a good understanding of assignment fees and/or double closings, and a strong working knowledge of that. The best Professional at get is a Title / Escrow company (or an Attorney if you are in a state that requires Attorneys to be involved in real estate transactions)
• Next a Realtor - the Realtor absolutely has to understand real estate investing. Now a lot of Realtors will tell you that they do, but in reality when you talk to them about being a wholesaler, very few of them have any idea what you are even talking about. If they don't, then that's not the right person for you. You have to have somebody who understands fundamentally how the real estate investment game works, and can be a strong resource for you. Somebody you can count on to help you find property. Somebody you can count on to help you run comps, somebody who potentially is working with banks on REOs and can bring you deals, somebody who can make offers on your behalf, and someone who is willing to do all of these things for you.
• Find a good Contractor - either a General Contractor or Remodel (Rehab). This is an area that scares a lot of investors -- people are scared about the roof and they are scared about the foundation and they are scared about the HVAC, and so on. Once you understand rehabbing a property and what it takes to do that, it becomes very, very simple.The easiest way to find really good contractors is just go to Lowe's or Home Depot at 7 o'clock on Monday morning.
• Last, but not Least is to find a good property manager - 
• Sources of Money (OPM) -