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Wholesaling

Top 6 Ways to Increase Real Estate Wholesaling Leads and Grow Your Buyers List

Consistent lead generation is paramount to your success in the real estate wholesaling business. Finding a seller begins the wholesale process while finding a buyer closes the deal. 

However, generating valuable leads does not come easy. 

Even when you already have a long list of leads, you’ll still have to trim it down to the quality ones. After all, you don’t want to have just any leads—you want to garner high-quality leads to close more deals. And this can only be achieved by mastering the methods for consistent lead generation.

In this article, we’re going to tackle some real estate lead generation ideas so you can keep growing your buyer’ list. By having consistent growth in your buyers’ list, you can be confident that you’ll keep closing wholesale deals—and keep your income stream flowing. 

6 Ways to Generate More Leads

Generating leads in wholesale real estate requires diligence. That said, even a wholesaler’s time and effort are an investment. To ensure that your work pays off, you’ll have to work smart—not hard. 

For example, if your current method isn’t giving you the desired results, you need to try different lead generation strategies. Remember what Albert Einstein said, “Insanity is doing the same thing over and over and expecting different results.” 

And you don’t want to fall into that frustrating trap.

So, consider using these wholesale lead generation strategies to fill up your list, so you can spend time closing more deals.

1. Multiple Listing Service (MLS)

The Multiple Listing Service is an exclusive online database for licensed real estate agents, featuring properties available and sold on the market. What’s great about this is that it can automatically send leads to your inbox, among many other perks. More importantly, this real estate lead generation strategy is completely free—as long as you find access to it. 

Another benefit of this is that it can also connect you to other real estate investors in the market. As you grow your buyer’s list, you can also grow your business network.

Still, using MLS requires some dedication to be effective. Since a lot of agents use this strategy, posts can easily get lost among thousands. You’ll also need to go through many real estate leads until you find quality ones. 

So, yes, MLS comes with a few challenges. But, it’s comprehensive, affordable, and convenient—making it a terrific real estate lead generation method. 

2. Leverage Networking

Connecting with other real estate investors and helping each other out can keep you consistently closing deals. Now, some wholesalers are looking for sellers while others are looking for buyers. But by pooling together your resources, you can establish a mutually beneficial relationship. 

Nevertheless, this setup requires you to split profits. You’ll earn a bit less, which means you need more leads to compensate. This strategy is still great for growing your buyers’ list, as well as your network, so the pros outweigh the cons.

Apart from the real estate community, you can also look at your personal network. You never know which one of your friends or family members is looking to invest in. A quick post on social media sites or asking around might seal you some great—unexpected—deals. 

In other words, think out of the box and use your current network to generate wholesaling leads.

3. Cold Calling

This method is a popular one, as it kills two birds with one stone. By cold calling, you use your existing leads to generate new ones. 

The idea behind this is that people with similar interests usually gather together. Similar to how there is a network of wholesalers, there is also a network of buyers. So, take advantage of your current connections to see if they know others who are interested in your deals, even if they aren’t interested themselves.

Once you’ve identified some prospects, give them a quick call. Then, keep all of these individuals in mind and remember to follow up whenever you have something to offer. You can then continuously assess which ones are willing to make a deal, giving you very high-quality leads more willing to make a deal with you.

4. Drive for Dollars

Driving for dollars is a tried and tested strategy for real estate lead generation. There are many leads out there in the world—and sometimes all it takes is a quick drive around town to spot the right signs, literally. Yes, your car’s mileage will increase, but so will your buyer’s list.

Many real estate investors are also renters. In other words, you might find a house with “for rent” signs and contact details. 

Once you see these potential clients, give them a call to ask if they’re investors looking for properties. Investors are always looking for the next opportunity, so you might just get lucky and land on a willing prospect. And even if the person is an agent, that still works, because they might be looking for properties on the market as well.

5. Real Estate Agents

If there’s anyone that’s knowledgeable about the local real estate market, it’s the real estate agents. 

If you’re considering doing future investments in a certain area, a real estate agent can help you start. Real estate agents can be very helpful in building your buyers list and growing your own network. When you’re investing in a new area, they can help you close your first few deals by linking you to local sellers, investors, and properties in the local market.

Once you gain a grasp of the local market, you can start doing deals on your own. Alternatively, if you establish a good business relationship, you can even consider becoming long-term business partners. Real estate agents won’t only help you grow your buyers’ list, but they can help you land consistent deals.

6. Bandit Signs

Bandit signs are poster-sized signs with a short, direct message and contact details. You usually see a dozen of these signs near a property, often in high-traffic areas like local markets, shopping malls, and busy streets. It’s a common practice in real estate since it’s an effective form of real estate marketing. 

After all, leads can come from all sorts of places. And this method is a great way for you to cover multiple areas and expand your reach. Also, it’s usually quite affordable to put up bandit signs making this a more cost-effective way to strategically grow a buyer’s list.

Conclusion

Real estate wholesaling takes time, effort, and commitment. As a wholesaler, you have to strategize, think ahead, and be ready to face challenges head-on. Yes, generating wholesale leads does take a lot of work. But if you do it right, all that hard work pays off. The more leads you generate, the higher your chances of closing deals. 

With these strategies at your disposal, you’re now ready to generate consistent leads to propel your real estate wholesaling journey to the next level.

Got tips of your own or stories to share? Let us know in the comments below!

Image courtesy of RODNAE Productions

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Wholesaling

Build Dual Income Streams by Wholesaling and Renting Real Estate

Most real estate wholesalers only focus on only one thing: Connecting sellers with buyers. So, they build a buyers’ list of flippers and buy-and-hold investors every day, manually turning the wheel and generating a consistent flow of income by sealing deals as often as possible.

However, while being the middleman is lucrative, it can also be very labor-intensive.

You’re constantly on the lookout, hunting for opportunities to get a house under contract at a workable price. Then you’re always trying to find buyers to sell it immediately after purchasing. As a result, you buy low, sell high, and repeat—because stopping means no income.

Eventually, you get to a point where you’re sealing more deals than you expected. You feel like you’re all maxed out, working 60 to 80 hours a week. You say to yourself, “I made it! I’ll just keep doing this to make more money.” 

And that’s what you’ll do forever.

Is it really worth the time you’re spending on it? Personally, we think there’s another, smarter way to use your time and money. In this article, we’ll show you how to harness the money-making power of wholesaling real estate plus renting out properties to build a two-layer strategy within your portfolio. That way, you can generate both active AND passive income.

Wholesaling Real Estate is Short-Term Money – So, it’s a JOB

Wholesaling makes money at high volumes. But the biggest downfall with wholesaling properties is that there is a limit to your earning capability (i.e. the number of deals you can physically close each month) because it’s very hard to scale.

The reality is this: Wholesaling doesn’t build up wealth. It relies on your constant hustling it to earn a living. When you stop working, your income stops.

Let’s illustrate this point by going over your daily schedule as a wholesaler:

  1. You wake up early to make phone calls and reach potential sellers and buyers before they go to work.
  2. You continue those calls until lunchtime, because you want to catch them when they’re on break.
  3. Then you crawl from courthouses to probates, scan divorce and bankruptcy rooms, do direct mailings, and drive around target neighborhoods to seek good deals.
  4. You also stay in touch with sellers, agents, and buyers with follow-up calls, emails, or physical mailing lists.
  5. You input all of this information in your tracking sheets and databases and continue tomorrow.

You’re doing the grind, trying to build a pipeline. Eventually, you’ll realize that there’s a ceiling to your earning capability because, at the end of the day, you’re trading time for money.

For example, you can’t physically do 500 calls a day to increase getting good deals. And while you probably feel ecstatic with learning how to improve your margins from one sale to another, you’ll eventually realize that $6,500 a month… just isn’t enough.

If you want to do something bigger but with less effort, you need something more scalable. You have to expand to other real estate investment strategies to gain more wealth.

Wholesaling Real Estate to Support Long-Term Wealth

Wholesaling is lucrative—especially when you use it as a feeder to a larger, wealth-building business.

Here’s the idea: Try to combine the active income you get from wholesaling with other investments that can give you passive income. That way, you’ll earn money in the long haul—not just that month.

Let’s see how this idea works. 

Imagine if you buy one house for every seven that you wholesale. You turn that house into a rental and start earning monthly income from rent. The result? You’ll earn dollars that will help you pay an annuity forever. You’ll create a ripple effect, growing your portfolio with two strong streams of income—wholesaling fees and rental income. 

Wholesaling vs. Rental Properties

By setting goals like the example above, you stand to gain advantages from both investment strategies. You can make quick money from wholesaling deals, channel a portion of your profits into rental investments, and achieve long-term financial freedom that’s not dependent on you working 9-5 as a wholesaler.

Wholesaling Real Estate + Rental Properties = Lucrative Portfolio

Make the most out of your time and money. You don’t have to stick to one real estate investment strategy. Instead, you can connect them to build wealth in your portfolio and surpass your previous income goals.

To wrap it all up, continue with your wholesaling plans, but set new goals for the long haul. You’ll find that it’s much more fulfilling to build a business that looks to the future. Treat wholesaling as a part of your overall investment strategy—instead of just a side hustle.

What is your goal in wholesaling real estate? What’s keeping you from scaling your investments?5

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Wholesaling

How to Virtually Wholesale Real Estate

Like everything else, the real estate industry has drastically changed during the pandemic. The combination of people trying to avoid foreclosures and digital transformation allowing every real estate investor to tap markets nationwide has resulted in the rise of virtual real estate wholesaling—a trend that is likely to continue post-pandemic.

In fact, the National Association of REALTORS® said 51% of home buyers today found their home online—more than they do through real estate agents! This means there are many people out there who are willing to buy and sell homes online. Therefore, the virtual wholesaling process is an opportunity for you to take advantage of the digital transformation happening in the real estate industry.

Are you interested in becoming a virtual wholesaler? Here’s what you need to know.

The Benefits of Virtual Real Estate Wholesaling

Virtual real estate wholesaling follows the same idea as traditional wholesaling, except your involvement is completely done through digital means. Using digital technologies such as emails, digital signatures, and online databases, you can close wholesale real estate deals without showing up in person. 

Here are the three biggest benefits of this arrangement:

  • Expand to Multiple Markets: You can venture into multiple new markets without increasing your costs, making your wholesaling business scalable. Operate in the hottest markets, grow your buyers list, and even use digital marketing strategies to expand your business.
  • Save Precious Time: It takes weeks to visit all the properties you want to wholesale. With virtual wholesaling, however, you can check out multiple locations in a day. Chat with motivated sellers and make blind offers in varied investment areas easily.
  • Build a Virtual Team: You can build a virtual network to operate your wholesaling business online. Bring in real estate agents, virtual assistants, contractors, and vendors to help you analyze and close deals in all the markets you want to sell in.

All of these real estate investing benefits sound great, but can you really operate without physical appearance? Let’s take a look.

The Steps to Virtual Real Estate Wholesaling

Here are the points in the home buying process when physical presence is typically required:

  • Scouting areas with real estate agents
  • Negotiating with motivated sellers
  • Inspecting and conducting due diligence
  • Estimating the repairs
  • Signing documents

Your goal is to turn these points into digital processes. How? 

  • Use Websites to Find Profitable Areas: Use Mashvisor’s heat map for analysis. As they say, in the real estate industry, it’s all about location, location, location. You won’t need to meet with real estate agents when you can do initial research yourself.
  • Use Websites to Connect with Sellers: Instead of elbowing your way through the MLS, Mashboard provides homeowner data for you to contact the potential seller. Through this tool, you can get their property address, email address, and phone number to start negotiating.
  • Use Virtual Walkthroughs: Browse through Zillow and you’ll see properties that offer virtual tours. If the property you’re eyeing is there, book a digital tour to simulate a walkthrough and check the property out. If the property doesn’t have a virtual tour, you can tap your virtual wholesaling team to conduct due diligence.
  • Conduct Real Estate Analysis: Once you find a good deal, conduct real estate investing analysis to ensure that the after repair value (ARV) and estimated repair cost (ERC) is favorable to market prices. Run comps for the ARV through Zillow or Redfin, and use online calculators by Home Advisor or Kukun to get the ERC.
  • Use Digital Apps to Sign Documents: Got yourself a wholesale deal to close? Download Docusign and DotLoop to sign the real estate contract electronically, send it through email, and get the property under contract without any physical contact. 

Lastly, collect your wholesaling fee either by including it as a line item on the settlement statement, or having the buyer send you a check. Either way, you can do this without meeting anybody in person.

Conclusion

Becoming a virtual wholesaler allows you to tap into lucrative markets with tremendous flexibility and agility. As our world evolves into a highly digitized system, virtual wholesaling is your opportunity to take advantage of digital transformation and get ahead of your competitors—expanding your wholesaling business in all possible locations.

Any other tips or tools for virtual real estate wholesalers?

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Wholesaling

3 Ways to Run Comps for Wholesale Deals

New investors are attracted to real estate wholesaling because it’s an investment strategy that doesn’t need a large amount of upfront capital. Moreover, wholesaling real estate helps newbies become more familiar with the industry and gain valuable negotiation skills.

So, if you’re one of those aspiring beginners, you’re in luck. This article will teach you an essential skill that every successful wholesaler perfects: running comps to price your wholesale deals correctly.

What are Real Estate Comps?

Comparable sales, or “comps”, refer to recently sold houses similar to the property you’re interested in wholesaling. They are similar in terms of:

  • Neighborhood or location
  • Property size (square footage)
  • Property condition and age
  • Property type (e.g., single-house home)
  • Property features (e.g., a garage, swimming pool, and number of rooms)

Real estate comps can either be calculated manually or with online tools, as we’ll discuss later on.

Why is Running Comps Important?

To understand the importance of running comps, we have to review a typical wholesaling process:

  1. A homeowner decides to sell their distressed home to avoid foreclosure.
  2. They approach a wholesaler (or the wholesaler approaches them), and the two of them decide to put the house under contract. The value the wholesaler typically pays is 60-70% of ARV (after repair value), minus the estimated repair costs (ERC)..
  3. After agreeing on the terms, the wholesaler finds an eager buyer to sell the contract at a higher price—that is, at or nearer to market value.
  4. The buyer checks out the house, runs the numbers, and sees that it’s a good deal. They will then  agree to purchase the property, and the wholesaler will assign the purchase contract to them.

The homeowner is glad to have sold their house; the buyer is thrilled to have acquired a profitable fixer-upper project. And, of course, the wholesaler is satisfied to have facilitated the transaction, since they pocket the difference as profit.

So, where do running comps come in?

Running comps is part of determining the ARV or the market value of a fully renovated home. This is important because it helps you price the property correctly.

If the price tag you put on a contract is incorrect, one of these two situations will likely happen: 

  • If you price it too high, it won’t attract or convince any buyers.
  • If you price it too low, it won’t give you the margin needed for a significant profit.

Instead, you need to figure out the ideal selling price for you to find motivated buyers and earn a decent wholesaling profit. With this goal in mind, let’s get into the details of how you can run comps yourself.

3 Ways to Run Comps for Wholesale Deals

We’ll show you three simple ways on how you can pull up comps on the internet. Then, once you’ve done your research, our advice is for you to drive by the comps to verify their details.

Method #1: Using the MLS

A multiple listing service (MLS) is an information database established by cooperating local real estate brokers to provide data on properties for sale. Only licensed real estate agents and brokers that pay a membership fee can access an MLS. That said, if you know somebody who can access one for you (or you’re a licensed individual yourself), it’ll offer you the most comprehensive list of properties in a specific area.

Here’s how you can use an MLS to run comps:

  1. Select your property type.
  2. Enter the address of the property you’re wholesaling.
  3. Define your radius. You can start with 0.5 miles and adjust according to property density (e.g., if there are too many properties within half a mile, narrow down the coverage).
  4. Change the “sold” parameter to sold within six months.
  5. Input the size range of your property (the parameter can be 300 square feet above and below the property you’re wholesaling).
  6. Plug in the city and zip code of the property. You don’t want to consider the properties in another city or state, even if they’re within the radius you’ve selected.
  7. Tap the “count” button, and the comps will show up.
  8. Pull up the map to see if any comps are near a feature or school, as they will likely jack up the ARV—even if they’re only a street away from your property.
  9. Assess the property condition and features of the comps, singling out the ones most similar to your home. Make sure to look around the neighborhood using Google Street View to match its location to yours.

Once you’ve narrowed it down to a couple of comps, you can send the results to yourself via email. 

Method #2: Using Real Estate Websites

If you can’t access the MLS, the next best thing is to use real estate websites. They may not be as exhaustive as an MLS, but they can certainly help in pulling up comps.

Start with these three websites:

  • Zillow: Plug in your property’s address, filter the results to recently sold in six months, find the location of where your property would be on Zillow’s map, and use the same criteria as the ones listed in the MLS process to find your comps.
  • Redfin: You can also pull comps on Redfin based on recently sold houses. They use the data that real estate agents use to estimate the “lowest published error rate” in the market. And, unlike other appraisal estimators, Redfin Estimate considers all the homes on the MLS for an accurate property market value.
  • Homesnap: Yet another option is the Homesnap app, which provides the ARV of the properties listed on their platform. The number they give is usually a mid-price between the highest and lowest value. Homesnap also gives additional information like school ratings, average days on the market, and market scores.

These are just three of the many real estate websites you can run comps in. Others include Trulia, Realtor.com, Property Shark, and RealQuest. It’s best to run comps on more than one of them, so your ARV is based on various properties listed on each website.

Method #3: Manual Calculation

Lastly, if you prefer to run comps yourself, here are the steps for you to do so:

  1. Look at the properties within 0.25 to 0.5 miles from the home you’re looking to wholesale.
  2. Find at least three comps of similar property size, type, and age. The more comps you find, the more accurate the results would be.
  3. Single out the homes that have sold in the last three to six months. The idea is to determine the average purchase price under current market conditions.
  4. With the comps you’ve identified, calculate their average price per square foot.
  5. Multiply the number by the square footage of your wholesaling property. Now you have your estimated ARV or fair market value.

Running comps manually does take more brainpower, but it’s always helpful to keep these steps in mind, even if you’re planning to run comps with online tools.

Conclusion

And there you have it! You now know how to run comps for a wholesaling deal. You can use any or a combination of these methods to identify the ideal price for a specific home—even if you’re not so familiar with the local area’s property values.

By knowing how to pull up comps three different ways, you can adapt to any situation whether the home is in a remote location, volatile market, or has the most unique of features. You’re now equipped to analyze and correctly price any wholesaling deals you come across for a successful investment.

We’ve also done another article on how to get started with wholesaling real estate, should you want to educate yourself further on the foundational pillars of the trade.

Do you have any other ways to run comps? Share with us below!

Image courtesy of Ron Lach

Categories
Wholesaling

How to Dominate Wholesaling Houses in Your Area

While you might be tempted to cover areas beyond your local real estate scene, it’s possible that you’re already sitting on a wholesaling goldmine—and you just didn’t know it!

Here are the signs of a market that’s ripe for a booming wholesaling business:

  • Overwhelming amount of cash purchases
  • Abnormally fast sales
  • Houses getting multiple offers
  • Escalation clauses (to avoid getting outbid)

If your local area has all these factors, you’re in a great place to become a wholesaler.

Read along to find out the two-prong strategy that will help you dominate your local real estate market and build a successful wholesaling empire—right where you live.

Search-Optimize Your Wholesaling Business

Aside from doing offline marketing, there is also a world of possibilities online. Not only are geographic boundaries removed, but the internet also enables you to effectively target and reach your audiences with SEO (search engine optimization) tools.

Check out these online marketing platforms for real estate wholesaling:

  • Wholesaling websites
  • MLS (Multiple Listing Service)
  • Online forums and auctions sites

All of these efforts hinge on the fact that we do practically everything online nowadays. Your customers are more likely than ever to search online for new properties.

Your goal is to be visible and easily accessible via an online search. This is where keyword research comes in. By knowing what keywords to target, you can also maximize your reach on search engines, gain valuable traffic, and generate qualified leads.

Do a simple test to see how your business currently ranks in search engines:

  1. Search “real estate wholesaler [location]” on Google.
  2. Look at the top results.

Does your name or business appear? Where do you rank versus your competitors? Who shows up before you do?

Well, you need to beat them.

Optimize your searchability by choosing keywords that your buyers will search for, then incorporate them in your blog posts, listings, and website.

Here are some keywords you can consider:

  • local real estate wholesalers
  • house wholesalers near me
  • local cash buyers in [area]
  • local house sellers in [city]

For in-depth SEO strategies and more information on how keywords work, you should also check out Reibar’s article on keywords that real estate investors should be targeting.

To boost your online presence further, you can also pay to get increased visibility in highly competitive markets. Paid advertising involves platforms such as Google AdWords and Facebook Ads.

Network to Outshine Your Competitors

Given the wholesaling potential of your area, you might be competing with a lot of other investors. It’s definitely not bad for business, but marketing will be a challenge.

In our article on the best places to find wholesaling deals[1] , we mentioned a couple of offline marketing methods such as:

  • Driving for Dollars
  • Bandit signs
  • Direct mail campaigns
  • Networking
  • Newspapers

All of these methods are effective in finding wholesaling deals, but networking is the most important strategy when trying to dominate a market.

The good thing is that all competitive areas have an REIA or two in the community – Metro Detroit definitely does.

REIAs are a great place to start making your presence known—the goal is to establish your wholesaling business to outshine other wholesalers and be the go-to property supplier for the local area. REIAs give you access to a whole group of people for:

  • Building an active cash buyers list
  • Developing strong and reliable connections
  • Boasting your overflowing housing inventory

You can also team up with Bird Dogs or acquisitions managers who are interested in the local market. The more properties they bring you, the more inventory you have to sell to cash buyers.

Conclusion

The key to dominating your local wholesaling market is good marketing—both on-ground and online. By networking closely with the community and optimizing your online presence, you’ll set yourself up for long-term success wholesaling in any competitive space. Ultimately, you want to establish yourself as an expert—and building your credibility with a great online presence and consistent quality service is how you do this.

To succeed even in these uncertain times, go through our wholesaling trends and insights that have surfaced during the pandemic. Get a good grasp of the present and future of wholesaling real estate to dominate the business in your local area—and beyond.

Need help in beating your local competition? Get in touch with us! Our team is more than willing to help.

Image courtesy of Andrea Piacquadio


Categories
Wholesaling

Which Type of Real Estate is Best?

The answer is, you can wholesale anything that has buyers!

That’s what makes things tricky.

There is a multitude of real estate property types you can potentially wholesale. But which one should you focus on? Which are more suited for the wholesaling technique?

Consider that the ultimate goal in a real estate wholesaling business is to generate profit by locating distressed properties that are owned by motivated sellers, putting their houses under contract, then assigning the contracts to buyers who want them. You don’t renovate or take ownership of the property. Instead, you find good deals, estimate repair costs and ARV, and collect a wholesaler fee when buyers sign purchase contracts.

Two crucial things here: the potential profit you can make from the properties, and the speed it takes to match them with buyers. The whole process should take only 30-45 days because the faster you close deals, the more successful you’ll be.

But which type of real estate should you focus on?

Single-Family Houses

SFHs are plentiful in all states. A quick search of US housing statistics shows that 60.3% of housing structures in the country are SFHs (1-unit, detached). This makes them familiar to most, including wholesalers, and the obvious preference of most buyers.

You can find plenty of distressed SFHs under market value. In places like the City of Detroit, which was hit hard by the housing crisis and has lots of blighted areas, foreclosure-related sales are common.

Here, you can scoop up distressed SFHs with minimal capital, but do people want to buy them? Especially in blighted neighborhoods? It’s all about location, location, location, so no matter how good some deals are, they’re probably not suited to wholesaling. You want to find sweet spot houses that are both affordable and marketable. Cheap, tear-down houses in undesirable neighborhoods are not marketable.

With single-family homes, you can typically seal 5-10 deals per month, each of them giving you $5,000-$10,000 in profit. This makes them the bread and butter of the wholesaling business. They’re easy to find and easy to earn from.

Mobile Homes

While mobile homes aren’t the most popular, there are wholesalers who swear by them.

Mobile homes are the third most popular (7.6%) housing structure in the US. Most of them are in the southern states: Florida, Texas, North Carolina, Georgia, South Carolina, and Alabama.

There will always be a market for a cost-efficient living, so it is possible to find buyers for mobile home wholesale contracts. You’ll experience less competition, a stable demand, and get your name is known in the market fast (the community of mobile homeowners is often close-knit).

In terms of margins, mobile homes are low. You’ll earn around $500-$2,000 as an assignment fee for most deals you find. (Though it’s not unheard of to make $30,000 in high-demand areas, those come rarely!) In general, it’s going to take at least 6 mobile home deals to equate to 1 SFH deal.

In terms of volume, there are fewer mobile homes than SFHs across the country, too. So it depends on how much leg work you’re prepared to do, and which properties are in higher demand in your area/the people on your buyers’ list.

Apartment Buildings (and Multi-family Homes)

Most beginners are intimidated by wholesaling multifamily properties, due to their size and difference in buyer criteria (versus the usual SFHs). Instead of basing the value on ARV, apartment buildings and MFHs depend on the net operating income (NOI) or cash flow that it will produce.

Apartment buildings range in units sizes from studio to 4-bedroom, and in building sizes from a few floors to dozens of stories. In general, they are most in-demand in metropolitan areas. Because of this, apartments are not as preferred in smaller towns as in big cities. Keep this in mind, as apartments that attract fewer tenants will have a smaller buyer base, taking more time and marketing costs to seal deals.

Larger properties and buildings also take a lot of time to analyze. You will spend more time on these deals than you will with smaller properties. This means you’ll have lower volumes, so will need to make more profit from a smaller number of deals, most likely.

Nevertheless, MFHs are still in demand today, due to how much income they can provide on a monthly basis. There is also ease of managing them and higher ROI per unit compared to SFHs.

Wholesaling one building can bring in five to seven figures per deal, making the higher time investment on your part potentially worthwhile. Higher prices, bigger profits! Just make sure you’re prepared to put in the legwork and find the right location to wholesale apartment buildings or MFHs.

Commercial Properties

Wholesaling commercial real estate includes office buildings, retail malls, warehouses, or buildings with mixed usage. You’ll be sealing deals with investors who are looking to make money from overhauling and repositioning the building to attract businesses or tenants, focusing on NOI instead of ARV (just like with MFHs).

The pros of wholesaling commercial properties are bigger profit margins, less competition, and easier financing.

Their values are usually in the millions of dollars, therefore, the assignment fee you’ll make will also be high. Most real estate agents are also more comfortable with residential properties, so there isn’t much competition in the field, allowing you to negotiate with investors.

The range you can earn from commercial properties is wide (a small office will vary greatly from a retail mall). But with the right connections and buyer’s criteria, most of them are also easily sourced. In fact, some have experienced a larger pool of distressed commercial properties out there than residential ones (if you count construction REO properties).

Vacant Land and Lots

Empty lands can be wholesaled, too. Parking lots, infill lots, demolished buildings, acreage, and lots that are great for building new structures are fairly easy to wholesale. Given their variety, buyers for land wholesale deals will also come in all shapes and sizes.

If there is a market for new construction in an area, there will be a demand for buildable lots. Some home investors, for example, are constantly on the lookout for new lots to build on. Wholesaling empty land that meets their criteria is as straightforward as it sounds. These potential markets can be found by searching for areas that have sold newly-built structures recently. Chances are, those are the areas where houses are being (and will continue to be) built. That’s where you should look to wholesale vacant lots.

Flipping vacant lots can mean a teardown (usually done where the land is more valuable than the house) or a cleanup. Once you turn the land around, selling it can be fast – if it’s in a desirable area. The margins are smaller than with SFHs, however, unless you’re dealing in larger, more expensive plots of land.

Each property type has its pros and cons–and this list does not cover it all. At the end of the day, it boils down to what you want, how many deals you want to do, and how much you want to make off each deal.

If you’re looking for straightforward wholesaling, go for SFHs.

For beginners, start by understanding your market and building your buyer list. You can do this by joining local real estate investor clubs. It’s easier to find properties that match buyers’ criteria than getting stuck with properties that nobody is interested in, so make sure you research the level of demand in your area for each property type before getting started.

What are your preferred property types to wholesale? What are you curious to wholesale next?


the best thing a wholesaler can do is find a class C property in a Class B area. Second best option: find one very close to a B area.

Image courtesy of Rodney

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Wholesaling

Top 5 Insights for Successfully Wholesaling Real Estate After a Year of COVID-19

Wholesaling real estate

Now that the global pandemic has been with us for a year, which trends started in 2020 that will continue to affect the real estate market in 2021? Particularly for wholesalers, what insights should you take away from the situation? How can you adjust and take advantage of new opportunities brought about by the lockdown? 

Being in a dynamic industry, where the only thing constant is change, the key to wholesaling success is to spot market trends early, extract relevant insights, and adjust the way you conduct your business.

In this article, you’ll find five important real estate trends for you to keep an eye on if you want to pivot with the landscape and remain successful in wholesaling real estate in 2021 and beyond.

5 Real Estate Trends and How it Affects Wholesalers

While the list below is by no means comprehensive, we see five important changes that happened in response to the global pandemic. Let’s discuss what they mean for wholesalers and the real estate industry as a whole.

1. Work-from-home is now mainstream.

With stay-at-home orders and social distancing rules, many office workers have been working remotely for nearly a year now, and most have settled into this new normal. What does this mean for wholesalers?

  • Many office leases are not being renewed.
  • People living in expensive homes close to offices are excited to relocate to the more affordable suburbs.
  • Vacation towns are now becoming an option for permanent residency. People are tired of big, populated cities and are seeking new places with more freedom and space on offer. 

Wholesaler Action: you may want to pay more attention to rural areas, where there is an increased demand from buyers—these are the areas that most office workers couldn’t consider prior to the pandemic, but now can. 

Don’t wait until the competition becomes fierce! Take the lead and meet the high demand before other investors swoop in.

2. People want an upgrade from their current home.

Working from home and having less social interaction with the outside world also means that people are investing more in their homes now. They want larger houses and backyards, more rooms and privacy, and bigger patios and storage spaces—especially if they have children. 

Families (and people of all ages) are now willing to invest serious money into creating a comfortable home, more than they ever were prior to COVID.

Wholesaler Action: This means that wholesalers need to pay heightened attention to the features of a home and think about whether or not they will be attractive to remote workers, homeschooled children, and folks who want plenty of leisure space when stuck on the property.

Think of the homeowner’s needs and preferences, many of which have evolved with the times. 

3. More people want to purchase homes.

After the record-breaking low-interest rates in 2020, the forecast for this year is still a relatively stable and low-interest rate. It doesn’t take a genius to see that we still have a long way to go before the economy improves, which means that interest rates are unlikely to move much higher within the year. Additionally, the Federal Reserve has declared that rates won’t be raised through 2023 to support economic recovery efforts.

For the real estate industry, lower rates mean lower payments, which means buyers can afford higher purchase prices. So, it’s an attractive time for people to buy a house (or two). Think about it this way: a $300k loan at 3% is almost the same mortgage payment as a $200k loan at 6%.

Wholesaler Action: For wholesalers, this means it’ll be harder to find and secure properties that are below market value. However, this also means that the properties you do acquire will sell quickly and for a higher price.

4. Housing inventory is low.

Due to COVID being easily transmitted, many people have put off selling their houses simply because they don’t want to have strangers in their homes. This increased competition within the housing market, with people snatching up the few available houses at lightning speed—even if they’re priced at top dollar.

Wholesaler Action: This makes it harder for wholesalers to secure deals at a discount, but it makes it easier to exit deals with a much higher profit due to larger spreads. In other words, it’s a good time to put in the extra time and energy in securing good deals and making up for it multiple times more at the exit.

5. The housing market likely won’t crash.

Contrary to what others might predict, due to the housing shortage and skyrocketing home prices, the possibility of a market crash is quite low for the moment. 

Unlike the infamous 2008 crash, this time around lenders did not allow homeowners to extract their equity via home equity loans or other methods. At the same time, appreciation and lenders doing smart loans have created incredible equity for homeowners. This means that, even with a struggling economy and high unemployment, it’s highly unlikely that we’ll see a wave of foreclosures.

For example, let’s say someone loses their job and can’t afford to pay their current mortgage payment anymore. However, they do have $200k in equity in their home. Will they walk away from their property and let it go to foreclosure? Or will they sell it and try to get as much of the equity out as they can? The obvious answer is to sell, of course!

Conclusion

When a door closes, a window opens—and early adopters will reap the most rewards.

As long as there are people who want to buy their own homes, there will always be wholesaling opportunities to assist the buying and selling process.

Choosing to not capitalize on the current situation out of fear is a losing strategy. As the famous saying by hockey Hall of Famer Wayne Gretzky goes, “You miss 100% of the shots you don’t take!”

So, keep searching for the right opportunities, and you’ll continue to be successful in any circumstances. Besides, real estate constantly fluctuates, even without a pandemic – so think of this as just another one of the industry’s lovely challenges. 

Any important wholesaling opportunities we missed?

Image courtesy of Alena

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Wholesaling

6 Things Beginner Wholesalers Wish They Knew

Remember Carlton Sheets—that real estate guy who was always on TV in the late 1980s?

He was a legend in the industry, and one of the key influencers who popularized real estate wholesaling. He had a course on wholesaling that customers took through a toll-free phone number, where his iconic line encouraged people, “You can get started in real estate with no money!”

Sheets isn’t as famous nowadays, but the excitement he created for wholesaling is still alive and well. He inspired many people then and now to get involved in real estate wholesaling even if they didn’t have any background in it.

While the process can differ from case to case, the typical wholesaling procedure goes like so:

People get into wholesaling because it sounds so simple, but they don’t realize how difficult it is. While all beginners will face common pitfalls and inevitable challenges, our goal is to equip you with the knowledge to tackle them, head-on.

Read on to learn the seven things beginner wholesalers should know before getting started!

1. Generating Wholesale Leads is Harder than You Think

Most people read about real estate wholesaling and think it’s easy, as there’s little capital involved in the investment. However, research shows that most real estate agents fail in their first year because they can’t find enough good deals or buyers.

The reality is that generating wholesaling leads is difficult. And, like new real estate agents, most new wholesalers don’t have a network and don’t spend enough time building one.

Beginner wholesalers will typically call all their friends and family, get a deal or two, and immediately exhaust their options. Relying on friends and relatives isn’t a scalable strategy, so many wholesalers get through their first year and quickly fizzle out.

That’s why the most important thing to know as a new wholesaler is how to generate deals and build a pipeline that provides a consistent flow of deals.

Here are six of the ways you can generate wholesaling deals:

  • Make offers on the Multiple Listing Service (MLS)
  • Make offers on the United States Department of Housing and Urban Development (HUD)
  • Make offers at auctions, both offline and online
  • Make networking a priority
  • Make time to drive by neighborhoods and find distressed properties
  • Make your own website or Facebook page to get inbound deals

We’ve gone over the details of these methods in our article about finding wholesaling deals if you want to know more about the specifics of each one.

Once you get some momentum going, you can also hire an assistant to help you make offers, find listings, and close deals.

With your deal generation system set up, the next step is to learn how to analyze the deals properly, because…

2. Analyzing Deals Correctly Will Make or Break Your Success

Wholesalers need to position themselves as expert deal finders who make buyers’ lives easier. Your goal is to build a good reputation for yourself and establish your business towards growth and expansion.

To do so, you’d need to learn how to properly analyze wholesaling deals and become a master in creating value for buyers and investors.

Here’s how to accurately analyze your deals:

  1. Determine the After Repair Value (ARV): Run comparables (comps) in the area using websites such as Zillow or Redfin to see how a property will be worth AFTER it’s been fully renovated (AKA the “after repair value”). Comps are the properties within ¼ – ½ a mile of your property that are of similar size, type, beds/baths, and age, and have sold within the last 6 months.

Here’s the formula for determining your ARV:

  1. Evaluate the Estimated Repair Costs (ERC): As properties for wholesaling are often distressed, you need to understand the rehabilitation costs to know whether or not a particular property is really a good deal or not.

Here are some quick tips for estimating the repair costs accurately:

  1. Finalize the Ideal Purchase Price (The 65% Rule): After determining your ARV and ERC, you’ll now calculate the ideal purchase price for your investment property. You can use The 65% Rule to compute this, where the formula is as such:

The 65% Rule is the wholesaler’s adaptation of the flipper’s 70% Rule—a rule of thumb that tells the flipper to purchase properties at a maximum price of 70% of its ARV. As a wholesaler, you can have a 5% difference that enables you and the buyer to make a profit—especially when you’re selling to flippers. Investors are likely to steer clear from a price that is more than 65% of the ARV (minus the ERC).

Keep in mind that the opposite is true: if you don’t know how to analyze properties and offer great deals, you will struggle with building your reputation and growing your network of buyers and investors.

3. Having the Right Documents and Contracts is Key

Wholesaling is basically buying and selling contracts, so getting this part right is pretty important! However, a LOT of new wholesalers don’t even have the appropriate paperwork in place before getting started, and that can lead to them getting burned.

You need to have the right paperwork with a contract that is assignable:

Let’s take a look at the key factors a wholesale contract needs to have:

  • The Wholesale Real Estate Assignment Contract: This is the legal document that makes it possible to transfer the right to purchase a property from the wholesaler to an end buyer. Once you and the seller enter an equitable conversion (making the eventual buyer the owner of the property once they sign the contract), you need to draft an Assignment of Real Estate Purchase and Sale Agreement:
    • The Assignment of Real Estate Purchase should have a copy of the original purchase and sale agreement between you and the seller, informing the end buyer of all the terms, contingencies, conditions, and payment terms involved in the deal.
    • The Sale Agreement should say that the buyer will purchase the home from the seller and assume property ownership—effectively absolving you from all responsibility.
  • The Wholesale Real Estate Purchase Agreement: There are many components in this agreement. The Wholesalers Toolbox have shared their templates to get you started on your contracts and agreements. There are also other sources you can find on the internet, just make sure that include the parts highlighted in this sample:

Make sure you have all of this in place before finding your first deal so you don’t waste time or end up scrambling to pull the documents together when an opportunity comes along.

4. Keep Your Profit Margin Private by Following the Double Closing Technique

The double closing technique in wholesaling is a popular strategy, because it allows you to keep your wholesaler fee private. In other words, it lets you hide your profit margin. You won’t have to explain to potential buyers about the price differences between your contract and the seller’s, thus saving you the headache of being cut out of the transaction.

This method contrasts with contract assigning because you won’t have to purchase the property—you only facilitate the transferring of contracts. In a nutshell, the technique is closing two independent deals that happen almost simultaneously, sometimes within a few hours or weeks. One of them is with the property’s original seller, and another is with the end buyer.

As the wholesaler in both these transactions, you need to treat them as individual deals with their settlement statements:

  • Statements with the seller are referred to as HUD-1, and outlines the purchase price you have negotiated and settled on. HUD-1 includes any prepaid interest charges, homeowners’ insurance fees, title insurance, property taxes, and closing agent fees.
  • Statements with the buyer identify the final purchase price you have agreed to sell the property. This deal is contingent on the first closing with the original property owner.

For more information on this technique, you can visit here. But simply put, the process goes like so:

It’s not rocket science, but it does take a lot of leg work. There is also the stress of indecisive parties, people backing out suddenly, and aligning the schedules of everybody involved in the deal.

The double closing technique is a good alternative to contract assigning, especially when used as an exit strategy. Of course, you would need to put “more skin in the game” by taking legal possession of the property for all of five seconds, but if contract assigning doesn’t work, double closing can increase the chances of a deal transpiring.

5. How to Turn Any Lead Into a Deal

Now, how do you handle “imperfect deals” or deals that seem tough to profit from?

The good thing about real estate investing is that there are many ways in which you can still make a profit. As long as the seller is motivated, you can find a way to make money off the property.

For example, if the seller owes more than the house is worth (i.e., upside down in the mortgage), you could find a lender that will agree to wholesaling the property as a short sale. These deals are rare but entirely possible.

Here are two nontraditional ways to wholesale a short sale property:

  • Buy in a Land Trust: This agreement is where a Trustee agrees to hold the property title for the benefit of other parties, known as the Beneficiaries. The name you’ll put in the purchase contract is the Trustee (the primary buyer). The buyer will then submit copies of the trust documents to the bank, as lenders will require the buyer’s LLC documentation to be submitted along with the offer. Once you get to closing, the beneficial interest of the trust gets assigned to the end buyer for a wholesaling, assignment fee.
  • Create an LLC: You can also create an LLC with the end buyer (typically costing anywhere from $100 to $500), buy the property as an LLC, and sell it to the end buyer. The LLC’s name on the short sale approval letter will not change when the buyers change hands, and you’ll still charge a wholesaling fee.

Alternatively (and, if you ask me, the better way to earn money from real estate long-term), you can take ownership of the property and turn it into a cash flow generating rental. Thus, you’ll extend yourself into becoming a rental property investor—and still make money off the property.

6. Adapting to Shifting Markets is How to Scale & Sustain Your Wholesaling Business

Just like any other business, you need to stay updated with market shifts that affect your business. Real estate is a dynamic industry that requires you to spot market trends early, collect relevant insights, and adjust the way you conduct your wholesaling business constantly.

Take the recent pandemic, for example, that changed the industry for years to come. We noticed four trends for wholesalers to keep watch of to stay successful in 2021 onwards:

  1. Work-from-home Becoming Mainstream: Many office workers move out of dense cities and into residential areas with more freedom and space. Wholesalers, therefore, need to pay more attention to the rural areas where buyers are now increasingly interested in.
  2. People Upgrading Their Current Homes: With the pandemic forcing people to stay indoors, people are now willing to invest in comfortable homes with larger rooms, backyards, bigger patios, and more. Wholesalers need to pay attention to the evolving preferences of homeowners and their heightened attraction to certain home features.
  3. More People Purchasing Homes: Interest rates hit an all-time low in 2020, and the forecast for 2021 reflects similarly. With these low mortgage and interest rates for properties, people want to own homes more than before. While wholesalers will have a harder time finding properties, determined wholesalers that do secure homes will sell faster and at top dollar.
  4. Decrease in Housing Inventory: Given the ongoing transmission of COVID-19, people have put off selling their houses to minimize contact with strangers. Competition within the housing market then increases—decreasing the chances of wholesalers getting properties at a discount. Nevertheless, it also makes exiting deals much easier and at a higher profit—where supply is low, demand is high (due to low mortgage rates), and home prices are soaring.

The pandemic might be a one-time thing, but disruptions and changes will always happen in the industry. The only thing constant is change—which means wholesalers should stay updated!

Conclusion

Wholesaling real estate is deceptively easy… And it is if you know what you’re doing.

Start on the right footing, and you’ll set yourself up for real estate success in the wholesaling business. Continue to learn from successful investors who freely share their best tips, join networking groups to discuss with other wholesalers in your local area[3] , and get familiar with:

  • Generating wholesale leads
  • Analyzing properties properly
  • Securing the right documents and contracts
  • Learning how to double close wholesale deals
  • Turning any lead into an investment opportunity
  • Adapting to shifting markets

With these in your back pocket, you can be just as excited as Carlton Sheets about real estate investing. You’ll have the knowledge required to truly become a successful wholesaler and “start on your own path toward financial independence” today.

Image courtesy of Djordje Petrovic


Categories
Wholesaling

5 Wholesaling Myths —Debunked!

Real estate wholesaling often gets a bad rap, but is it fair to call this an illegal or shady form of real estate investing? How did it get this reputation in the first place?

The problem is, wholesaling is usually chosen by first-time investors as a way of getting into the industry with little or no upfront capital required – which is great. But it also means that newbie investors get into this field and make a lot of mistakes, and that has led to some serious misconceptions about wholesaling over the years.

If you’re an investor who’s excited to get started as a wholesaler but is hesitant because of things you might have heard about it, this article will pull back the curtain on five of the most pervasive wholesaling myths. 

Wholesaling real estate is not outright illegal, but it’s governed by specific laws that require you to have certain contracts and documents before you can proceed. Wholesaling gets its bad rap largely due to the illegal practice of unlicensed brokering, which isn’t the same as wholesaling.

1. “It’s illegal to wholesale real estate.”

To ensure full compliance with local real estate law, here are some steps to take when wholesaling properties:

  • Have a bilateral contract with the seller that stipulates your acquisition of the equitable interest.
  • Have a proof of funds letter to prove your intent to purchase.
  • Wait until the house is under contract with the original seller before finding new buyers.

In the event of needing to defend your wholesaling activities in real estate commission hearings, having everything documented is essential for proving you’ve acted within the law.

2. “Wholesaling is only for beginner investors.”

Just because it takes minimal capital to get started with wholesaling, doesn’t mean it’s easy. For example, since you’re the middleman in deals, a buyer or seller can easily get rid of you to avoid paying an additional wholesaler’s fee—effectively taking you out of the equation altogether.

Secondly, while there is a low barrier to entry, wholesaling has a high barrier to sustainability. People tend to think that wholesaling fulfills a need in the market, where investors are looking for people to help them find their next deal. In reality, the investors themselves are already good at finding deals themselves. This makes finding good deals extremely hard. Plus, investors don’t want to subcontract finding deals to wholesalers, and those who do certainly don’t want to pay top dollar. 

Wholesaling can be a stepping stone for beginners to get into real estate investing, but that doesn’t discount the fact that it’s highly lucrative for experienced wholesalers. Mastering the skills and acquiring the connections for a steady flow of good deals enables you to earn as much as other investment strategies.

3. “Wholesaling is inferior to house flipping.”

Let’s put the two investment strategies side-by-side for an accurate comparison:

Depending on your reason and goals for investing in real estate, you might choose one over the other. Either way, based on these key differences, wholesaling isn’t inferior to house flipping at all, it’s just a very different approach with a lot less maintenance required.

4. “Focus on buyers who’ve already bought from you.”

Often called the “easy button buyer” mistake, this refers to the tendency for beginners to send future deals only to the buyers that were willing to close on earlier deals. This is a common myth that wholesalers believe to be effective, but in reality, limits your potential returns.

Think of it this way: businesses thrive on supply and demand. After closing a couple of deals, you now know the area, the numbers, and what features attract more particular buyers. In other words, you have the supply to meet the demand in more than a couple of markets.

Position yourself as an opportunity to as many potential buyers as possible, and you’ll ensure you have a scalable wholesaling business for years to come.

5. “A buyer’s list is necessary to be successful.”

Many investors will say that you need a buyer’s list to be successful in wholesaling, but this is not exactly true. 

The typical buyer’s lists are full of investors who do a lot of deals on a regular basis, meaning they’re serious buyers who can close with cash in 10 days. This is exactly what you want as a wholesaler, but you don’t need to have a buyer’s list to do this.

Instead, new wholesalers should focus on finding quality deals, rather than quality buyers. If you can find a great property, serious buyers will follow.

We’ve written elsewhere on how to find buyers for your wholesale deals, should you need further tips.

Conclusion

All these myths surrounding wholesaling real estate may give some the impression that this investment strategy is shady and unsustainable. However, with these common myths easily debunked, you can see there are actually many solid reasons that prove why wholesaling is an excellent way to invest in real estate. 

If you want to learn more about wholesaling in the current market, we’ve also written an article that explains the top five insights you need to successfully wholesale real estate after a year of COVID-19.

Image courtesy of Monstera

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Wholesaling

5 High-Volume Influential Real Estate Investors to Learn From

There is no better way to become a successful real estate investor than by learning from those who’ve already done it. One of the greatest investors in this world, Warren Buffett, gave the same piece of advice when he said, “In the business world, the rearview mirror is always clearer than the windshield!”

Luckily, many real estate investors are more than willing to share their rearview mirrors with you.

Here are five of the most influential, high-volume real estate investors in the industry today. These real estate icons generously share their thoughts and experiences on social media, making it easy for you to follow and learn from them on a daily basis.

Max Maxwell

At the ripe age of 21, Max acquired his real estate broker’s license and began selling properties. He experienced the 2008 bubble burst and continued on this journey through real estate wholesaling. Years later, Max set up his first real estate investment company, Cash Homes Triad. He set a personal goal to earn six figures—which he did by December of 2017. 

In two years, he generated over $2 million in wholesaling fees alone.

Today, Max Maxwell is known as one of the top real estate investors in the country. He hosts annual Wholesaling Elite Live events—where one of them garnered over 1,200 attendees—dubbed the biggest wholesaling event in history.

Quoting from his website, “It is my strong desire to help others achieve financial freedom. By using my social media presence and hosting meetups and events, I hope to directly impact the lives of millions. Remember, you’re only one deal away!”

Here are the links for you to follow Max Maxwell online:

Max Maxwell constantly posts entrepreneurial tips on his Instagram and in-depth real estate advice on his YouTube channel. 

Raul Bolufe

Raul Bolufe is a CEO, investor, and coach in the real estate community. By his 23rd birthday, he famously flipped a total value of $15 million and made $355k off the Multiple Listing Service (MLS). 

Today, he is the president of the growing company Capital Rise Investments LLC and has done over 200 wholesale deals since his first one in 2014. He is passionate about sharing entrepreneurial advice and wholesaling-specific tips for real estate beginners looking to scale their businesses.

Raul Bolufe hosts the Flipping Miami podcast, where he talks about the following topics:

  • His average and highest monthly profit
  • His experience with real estate investing
  • His unique technique that grew his business
  • His tips on Section 8 and why it matters in investing
  • His best tips on how to search and land the best deals on MLS

Here are some of his other profiles online that you can follow:

Raul Bolufe posts generic advice for all entrepreneurs on his Instagram account and shares real estate wholesaling how-to videos on YouTube.

Tom Cafarella

Tom Cafarella is a real estate investor and broker-owner. He is considered to be one of the most successful real estate investors in Boston, Massachusetts. He lives by the motto “If you’re not happy with the work that you do, you’re never going to be great at it” and encourages all aspiring real estate investors to chase their dreams—just like he did. 

Today, Tom Cafarella is an expert at building and scaling real estate businesses. He has acquired the company Ocean City Development LLC. In addition, he passionately teaches other people how to increase deals, scale their return on investment (ROI), and how to gear their mindset towards investment success.

Follow and learn from his story and company here:

Tom Cafarella regularly shares valuable and practical tips across multiple channels—YouTube, Facebook, Twitter, and his podcast “Massachusetts Real Estate Careers with Tom Cafarella.”

Joe McCall

Joe McCall is the host of Real Estate Investing Mastery Podcast (ranked 4.8 out of 5.0 by 559 reviews on Apple Podcasts), where he shares the secrets of wholesaling and lease options to earn full-income figures. He helps people “escape the 9-5” by holding valuable conversations with successful real estate investors, discovering new strategies to implement in your real estate investment and business.

He is also the author of four real estate investing books, including one about wholesaling lease options (a fast and easy way to make money from real estate) and another about how to make extra money flipping houses while on vacation.

Here are some of his social media profiles that you can visit and follow:

Joe McCall posts practical how-to content on both YouTube and Twitter.

Additionally, he also speaks at conferences and workshops nationwide. His talks give all investors the necessary information on marketing, automation, and delegation in the real estate industry. 

He’s the guy Raul Bolufe learned his business growth hacks from!

Graham Stephan

If you’ve been watching real estate videos on YouTube, you’ve come across Graham Stephan.

Graham Stephan is a real estate agent that has gained a significant following online due to his real estate accomplishments and valuable lessons for investors. His content centers around financial independence and the importance of investing correctly. 

Graham Stephan is his own testimony, as he famously skipped college to jump into the real estate scene immediately. He got his real estate license at the age of 18 and earned $500 on his first commission. By the time he was 27, he had sold a total of $120 million worth of real estate and has earned up to $1.6 million a year—being praised by Kevin O’Leary for his impressive accomplishment.

Now that he’s 30 years old, he has reached a staggering net worth of around $6.5 million. He has served celebrity clients such as Orlando Bloom, Chloe Grace Moretz, and Wale. In addition, he works as a realtor associate for the luxury property brokerage, The Oppenheim Group. 

Follow Graham Stephan via these links:

Since 2017, Graham Stephan has decided to pursue YouTube as a full-time job. All his videos are for teaching real estate investors just like him.

Conclusion: You Can Be Next

It’s never been easier to learn from other investors today. With the rise of the internet and the generosity of successful real estate investors, the world of information and inspiration is literally at our fingertips!

Follow Max Maxwell, Raul Bolufe, Tom Cafarella, Joe McCall, and Graham Stephan for daily lessons and tips on becoming successful in the real estate scene. Their experience defines our future success.

Who knows… You just might be featured in an article like these in the future!

There are way too many influential people in the real estate industry we can all learn from. Anybody else you’d like to add to our list?

Disclaimer: We are not endorsing any of these investors or their advice. Always exercise caution when taking investment advice from people on the internet! 

Image courtesy of Rodnae Production