The number one thing I get asked is how do I get started as a beginner in real estate? So let’s dive right in. Now this question gets asked all the time, because I work with a lot of people that are getting into the business. But by the end this video, I promise you, I’m going to tell you exactly what you need to do as a beginner to get started in real estate. I’m also going to address what is wholesaling, right, because a lot of you might not know, I’m also going to talk about other strategies other than wholesaling that you can do as a beginner to make money. And also, if you want to get into real estate, how do you get into it? Like, what’s the first step? What’s the first thing you do? So stay tuned, I’m gonna go over all these things, and let’s get you making some money.
So let’s talk about what is wholesaling. Because if you’re a beginner, you don’t know what it is, I’m gonna give you an in depth answer. And I’ll make a quick wholesaling all it is is is finding a distressed property, it’s finding a seller who wants to sell a house and you get that house under contract, you literally go sign a real estate purchase contract with that seller with that person and saying you’re going to buy their house, but what you have is you have an assignable contract, you have a contract that you’re able to assign to someone else to purchase the house, and you’re able to assign that to someone for a fee. So what you’re doing is you’re finding a distressed property, you’re finding a deal, and you already have a buyer in place that you know will pay more. And what you do is you say, hey, buyer, I have this house for this amount, I’m going to sell it to you, are you willing to pay $10,000 more than what I have afford? Or you can actually tell them? That’s what I tell my buyers say, Hey, I just threw my fee on this is are you able to pay that or if you don’t want to tell them the price, you could just say, Hey, I’m asking 60,000 And you know, you have it under 50 for 50,000 that you’re purchasing it for. So you’re gonna make $10,000 without having to purchase the property at all. That is what wholesaling is.
So what are some strategies as a beginner that can help you get into wholesaling? Well, you’re going to need to have relationships in order to get deals done. And that’s primarily what I teach is how to develop relationships with those cash buyers that you can assign deals to. So if you’re brand new, a beginner, the first thing the very first thing that I recommend that you do is go to a real estate, investing meetup. All right, all you have to do is go to Google type in real estate investing meetups near me, and you’re gonna have a lot of them. I actually have a monthly meetup that’s absolutely free in Utah that people go to and they ask questions, and we’re all there to help. And you best believe that buyers go there because they want to work with newer investors that want to bring them deals. That’s how I actually got a ton of buyers when I first started as I would go to those meetups and I’d say Hey, this is a deal. I don’t know if it’s a deal. Will you buy it? And then they say no, your deal stinks.
And then I would learn that and not have a good deal. So if you’re brand new, if you’re a beginner and you want to get started, that is a great way to get started finding buyers and just learning Okay, another great way to get started as a beginner in wholesaling is calling title companies, you can call a title company and say, hey, look, I’m brand new to investing. But I’d like to get into it. Do you have any contacts for me? Do you have any buyers I can work with. Now, I do this a lot. I go to a brand new area where I don’t have buyers and I say Hey, who’s buying right now I find deals I wholesale, I fix and flip, I do it all, but I’m primarily looking to wholesale, who do you have here that’s buying properties that I can bring a deal to? That’s a great way. Another great way to get started as a brand new beginner is go to Facebook groups, all you have to do is type in real estate investing Facebook groups, or sorry, real estate investing in Atlanta or Atlanta real estate investors or Utah real estate investors in those Facebook groups. They’re groups of either wholesalers, agents, real estate investors, they’re all in there, and they’re wanting to network and get deals.
So those are primarily what I would do when I’m brand brand new and beginning as a real estate investor. Okay, as a wholesaler. So another thing to do as a beginner is you’re going to need to pick up that phone I know it’s going to be kind of scary to call an agent or call seller or a call buyer when you don’t know what to say. But really, the best way to learn is just taking action, okay? Like you can watch me you can watch 1000s and hours of videos. But until you pick up that phone, you’re not going to feel confident about taking action. Alright, so I want you to just know it’s going to be uncomfortable. You’re not going to know what to say. But that’s how you get started. When I first started. I just got on a cold calling. I got a list I got on a Mojo dialer or batch dialer. If you if you don’t know much about dialer says basically, you put a list in there and you can call the people that you put in into the dialer.
And it just does auto dial. And so I was just calling people and asking if they want to sell and it got uncomfortable. I felt weird. But after a while it didn’t. It wasn’t weird, because, you know, I learned and I had a script. So that is another way to get started. Just pick up the phone and start taking action. So I actually have an in depth process I’m going to show you right now that talks about how to get started as a beginner that actually goes through the steps of how to do I’ll actually show you what to do and because I really like instead of just talking theory all the time, I’d like to show you implementation and like actually what I do so I have a video but before I get into that and show you that I want to invite you to my master class, especially if you’re brand new. If you’re experienced. That’s cool. I want you to come as well. But if you’re brand new, please please come to this. It’s a free masterclass that I do live. And by the end of that masterclass, I actually give you my free assignable contract. So, if you go, you’re going to get a lot of value because a lot of people charge for that I’m not going to charge you just come to the free masterclass, just register, there’s a link below, but you also just type in paynelesswholesaling.com. And you’re going to be able to register to my free masterclass where you can learn how to do this.
ut like I said, I promised you I would show you in depth strategy of how to get as a beginner how to go through the process. So right, here’s the video, stay tune, tune in, and you’re gonna see it. So let me ask you this, what do you believe is required for it to be a deal at this moment for you to wholesale?
I’m just curious, I want to ask you, the price has to be right, right or have enough money in it in order for everybody to be happy and make a deal?
Do you have an idea of what that is like? Because a lot of people as they research or wholesaling, they have like sometimes they hear of like a formula. It’s like 70% Minus repairs minus AR, you know, minus your fee is your wholesale price. What have you heard that I
I heard now, market shift, investors are going down to like, let’s say 60 to 70. But I’ve also heard at the end of the day, as long as they can make a 10% return.
All right. So you’ve heard a lot, right. He might be a little confused. Yes. All right. All right. So let me show you what I do. So you can kind of have a good idea of how to determine like, what your offers what is a deal. So I call it the Payneless Wholesaling method. This is the blueprint that shows you steps one through 10 on how to get a deal every step of the way. But the way I believe you get started in wholesaling is you have to at first mindset is really important because wholesaling. It’s a rollercoaster ride, especially when you get started ups and downs. It’s getting deals falling through. So you have to be prepared mentally to overcome that.
So what’s the first thing I tell people, the second step is picking a market. It’s really important as you wholesale to pick the right market. Because if you’re in a market that there’s not a lot of activity, a lot of flippers, you’re not going to have anyone to sell it to so you got to pick the right market. And you can use batch leads I show people how to use batch leads to pick their market. You can do cool things. You can check areas, you can pull lists, you can find buyers, let’s just say you were in Flagstaff, right? You’d be like, Oh, can I start wholesaling? Like a ton of deals in Flagstaff Arizona? Like is there enough volume is there enough cash buyers in this area for me to do deals. So right here, you can check if you just go to quick filters shows you that there’s quite a bit of cash buyers and that means sales in the last year or so. So Flagstaff would be good by the mount you can see says recent cash and hard money loan purchases of real estate. So they have automatic filters, it’s really easy to determine like if there’s activity if you’re in a major metro.
Because if you’re in a major metro, I’d say 99% of time, like there’s activity just because there’s a lot of people living there. If a population is big, that means that there’s a lot of people moving there. But if you live in a place that’s a little non populated, like 50,000 100,000, that just means there’s less movement, less people moving in and out of the state. That’s like a general rule of thumb. So the next step after picking your area is you want my goal. And what I tell people is do not just automatically or immediately just go start marketing and just calling sellers and trying to get a deal. Because you still are at this point, you’ve picked your market, but you don’t know what people are buying markets differ all over the country. So you need to be able to understand your market and what people are buying.
So the next thing I teach and this is why I call it the Payneless Wholesaling method is I teach you how to network first, to find your cash buyers. Once you understand and have about five to 10 solid relationships, then you can with confidence, go out and start making offers. You can talk to sellers so if you go to my mind map, I show you exactly how to run comps for wholesalers. So there’s some really easy ways to do it. But let’s go to step one. How to find comps. All right, so I use batch leads. I like batch leads a lot because it gives you a good idea of comps you can just type in the address you want. Let’s just look at this one. It gives you an estimated value it runs an algorithm right like most of the software’s, it tells you an estimate idea so you get a good idea of just immediately like okay, what it’s worth even quickly does comparables and it checks a radius within a year square footage. It does all that and it shows you a bunch of different comps. So that’s a quick way to do comps like immediately it’s just with batch leads. So the next one is Zillow, and then obviously MLS data trumps all it’s the best way to find comps.
So that’s how you find the comps. So you want to determine the ARV after you find comps in order to start the process of like, okay, what is a good deal? You need to find out what is this house I’m looking at? What is it worth if it’s at the top of the market, right or it’s fully flipped? So the best thing to do is find flipped comparables. If you’re just finding a bunch of homes that haven’t been flipped, it’s going to be difficult to determine what it’s going to be worth if a flipper goes there and makes it really nice. Do your best to find comparables. The next thing that’s important after finding the ARV so let’s just say for example, ARV you find a house that’s worth 200 And you know it’s worth 300 So that’s the car vs 300. Now you got to determine Okay, they’re giving it to me at 200.
But how much repairs does someone need to put into it to get it up to 300,000? Right? Here’s some questions to ask. So this says, are you working with a seller virtually? Or are you working with someone your backyard? This tells you how to navigate if it’s virtual, what questions to ask and how to get pictures. So this is the easiest way to determine a lie average or heavy repairs. So is the square footage of a house for examples. 1000 square feet times the cost of the light, if it’s light, it’s $18 per square foot, if its average is 24. Or if it’s heavy, which means down to the studs, you got to do the whole thing. It’s 40 equals your rehab costs. So for example, if you have 1000 square foot house that just needs carpet paint for are going to cost $18,000. Because you’re doing 1000 square feet times $18. Very easy. Didn’t need to go dive in deep into like a full rehab estimate spreadsheet. I just need to know square footage. Is it light, average or heavy? And if you’re like, Well, what makes something light Nathan? Well, right here if you don’t have to touch the cabinets or the bathrooms, and all you got to do is carpet, tile, paint, carpet, or flooring, it’s usually light to light rehab. If you have to start venturing into bathrooms and cabinets and kitchens, then you’re talking an average rehab, if you got to do everything from a gut job, we’re talking windows, everything, it’s 40.
And that’s like a good job. And these are average numbers, right? It could go up, it could be lower, but I would say 4024 and 18 are good. So if you’re talking to a seller, and you’re like, hey, you know, I’m interested in buying your house and tell me a little bit about the property. You’re like, has the kitchen been updated in last five years? No, it hasn’t. Okay, how about the bathrooms have the bathroom has been updated in the last five or 10 years? Yeah, we just updated last year. Okay, so I don’t have to worry about the bathrooms. Right? Then you’re like, Okay, kitchen. Yes, bathrooms? No, those are okay, and carpet and paint. So you’re right in between like an 18 to 24 because you’re not having to do the bathroom. So again, really easy to determine what you need to get a property for ARV What is this property worth flipped? How much do my repairs need to be? Now we’ve gone over both you’ve looked at flip comparables, you know that it’s worth 300, you know that this house in this example is 1000 square feet, it needs $24 per square foot in this example $24,000 rehab, so you have the rehab and you have the ARV now, okay, so that’s two parts of the formula.
And then now you calculate your offer that you can buy it and the way I do it is depending on if I’m talking to an analytical buyer, or seller, I sometimes even show them my rehab calculations and be like, Hey, this is why I have to be here, because I gotta make some money but determining everything we talked about, I can resell for 300 I gotta put in 24,000 I need to make 20 $50,000 I hope you understand I’m a business I sometimes walk people through my numbers so they understand why my offers $150,000 less than what they believe their house is worth this is the quickest way to determine if you’re talking to a motivated seller is forget all this noise all the stuff I just showed you look up someone’s house on Zillow and offer them 50% of their estimate. That’s the easiest way to determine if you have a deal because if someone doesn’t get off the phone with you, then obviously you have someone that you can work with. Right another quick way to do it is 70% of the ARV. All you do is you find the ARV you could do this formula.
So let’s say the house is worth 300,000 You say okay 70% of that minus we talked about $24,000 in repairs minus my wholesale fee, I want to make $15,000 171 If I offered 171 to the seller and they accept I’m gonna make at least $15,000 the flipper will have his costs of 24,000 in there and then the profit expenses of the hard money all that stuff is calculated in the 70%. That’s what the 70% is the 70% includes the 6% in commissions and fees for relisting it it also includes the closing costs the profit if you like that information that I just dropped on you and it’s helped you in your business or you believe it’s going to help you go to the next level. There’s a lot more that came from please like subscribe, hit the bell icon so you can get way more information on this topic and how you can make money as a real estate investor.
