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Wanna become a Real Estate Wholesaler?
Everyone, their moms and pops are wholesalers these days. Do you know what that means? A ton of gurus are coming out of no where and teaching young entrepreneurs that they can flip real estate properties for a living.
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It's true but I've got news for you. An average person that joins the real estate wholesaling will never close one deal. Everyone of them are going to go after the same old direct mailing strategy, lose money and call it quits eventually.
What is wholesale real estate?
It's a business model that involves finding motivated sellers and/or distresses properties, buying them at 50 - 60 cents on the dollar minus repair cost and then selling them to cash investors at 70 - 75 cents on the dollar minus repair cost for quick profits. It can be very lucrative.
The challenge is in the cost of finding wholesale homes. Let me explain...
No matter what type of business you are in, you are a marketer. Just like I mentioned in the my definition of wholesale real estate, the first step and the most profitable activity in the business is "finding motivated sellers and/or distresses properties". That's essentially, marketing. Well, that's also where most people fail with the business.
Also, most gurus that are teaching "how to start wholesaling real estate" got started in the dinosaur age. They are not necessarily family with marketing in the digital age. At least, they are not in touch with reality for a newbie.
They can teach you "wholesaling real estate step by step" except the marketing part. They teach most people direct mailing as a marketing strategy. The problem with that is that direct mailing is one of the over priced marketing strategy of the digital age.
The gurus may be able to afford (temporarily in my opinion but newbie end up competing against each other, get low response and then lose money. The other day, I was at a local real estate wholesaling meetup and I cringed and listening local champions spit out fake response rates from their old school direct mailing marketing strategy.
I've personally closed over 40 deals wholesaling houses...
More importantly, I've seen the ups and downs of the business. I also know that the number 1 reason why people fail in wholesaling houses is to know all the theoretical and legal aspect, wholesaling real estate contracts, and other crap but fail to master modern marketing.
There are tons of wholesaling real estate books such as "wholesaling houses for dummies" in the book shop but I've noticed that most of them spend the least amount of time on marketing ... at best on "old school marketing strategies."
Do you need a license to wholesale real estate?
The answer is no but on one condition. If you decide to become a wholesaler, be mindful that you will need to stand out and dominate. The only way to do that is to become a modern master marketer. Be the master in finding motivated sellers and/or distresses properties at the cheapest cost possible. No license is required for that.
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ABOUT YOUR HOST ::::|
Ola "Tux" Abitogun is the Creator of myEmpirePRO. He became a FULL TIME entrepreneur in October 2006.
He is a computer engineer and an engineering management graduate from New Jersey Institute of Technology; (NJIT) class of 2004/5. He was born in Dallas Texas and raised in Nigeria by his Nigerian parents. He considers himself a proud Nigerian American.
Today, he is a marketing addict, trainer, marketing and business consultant, real estate investor and all around serial entrepreneur. Most importantly, he is husband and father to their 2 Boys. The professional work he is mostly proud of is personally helping 1,000+ entrepreneurs around the world reach greater heights in their careers.
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