Don't Buy Into the Hype

I know that a lot of you are struggling to find direction in real estate.

This is evident from the daily posts on the forums here at BiggerPockets, and it is understandable indeed as you are bombarded with conflicting messages coming at you from every direction.

I received a call from a fellow BPer yesterday. He is not a newbie; he has been trying the wholesaling racket on for size unsuccessfully for 9 months. Did this sink in? Let me say it again – he has been trying UNSUCCESSFULLY to wholesale houses for 9 months! Now – the wisdom which lead him to me is not entirely clear to this dumb landlord (me), but he, and we talked, and he asked and I answered – he needed clarity.

Don’t know about clarity, but I think I did OK for him. The guy is rather sharp indeed and asked all of the right questions, so I think that he’ll be just fine. After about 45 minutes, he thanked me and said that I helped him to visualize things quite a bit.

Today, in hopes of helping a few more of you newbies out there, I’ll do my best to outline the central points of what was said.

Why He Struggles

As I mentioned, when he called the first thing out of his mouth was that for 9 months he’d been trying to figure out wholesaling. He told me that in that time he has had 2 deals fall apart on their way to closing. He told me that retailers seem to be excruciatingly particular and simply will not invest outside of very narrowly defined geographical areas and economic parameters. The numbers, he said, have to be an absolute flat-out slam dunk…!

Are you paying attention …read more