Zack Childress Why Start As a Wholesaling

Why Start as a Wholesaler? 

Wholesaling Real Estate

Wholesaling Real Estate

Everyone talks about wholesaling. We know that we want to go out and make money. We know that we want to go out and put deals together, but why start as a wholesaler, right? There are so many other ways of investing out there to make money. Why would wholesaling be the best way to start?

Well, you have to break it down into what we call “Four Tier Groups.” Tier one would be wholesaling. Tier two would be lease options and seller financing types of deals. Tier three would be rehabbing. Tier four would be buying and holding properties.

What I want you to think about is where you belong. Where do you fit in? Are you in a position to just buy and hold and get to your passive income faster? Are you in a position where you could rehab some houses to where you can make bigger checks so you can move into tier four faster? Are you in a position right now where you could do a tier two lease option to create some cash flow to make some checks later on so you can build up through there?

I ask you those questions for a reason. The reason is because I want you to think about something. If you read the article “What is Wholesaling” and “How I Got Started,”you will understand that wholesaling is nothing more than an exit strategy. You should always be wholesaling the deals that you do not want. Make sense now? Good. The reality is that you should always be marketing for tier two, tier three, and tier four. You might not be in a position to do tier three or tier four yet, but you still want those deals because the money could come along, the financing could come along, and you are getting the deals that you need, but in return, the ones that do not fit your criteria or the ones that you can’t get funding for or the ones that just do not make sense in profits; then you wholesale those deals off. So, the question is not why you should be wholesaling. The question is why you are not wholesaling now?

I want you to think about that. Wholesaling will always be a platform in your real estate business. We call it the “A B Cs to real estate.” A stands for “always be wholesaling.” B stands for “because it always leads to flipping” which creates chunks of cash. C stands for “cause it creates cash flow.”

You want to wholesale to get into tier three to flip properties and make big checks. You take tier three’s profits and you go out and buy properties to hold them for income. Keep your eye focused on the prize, guys. I am going to tell you right now that the worst thing that can happen is that you can get caught up in this real estate market model and you want to go after passive real estate investing and you want to build that life, but then you get off track and you start wholesaling and you start doing lease options and rehabs. Then you create another job for yourself and you never truly focus on why you started. Remember, always stay focused on why you started and let everything else just be a stepping stone to get you to that passive cash investing.

So, guys these are the reasons why you should be wholesaling. That is why you should never stop wholesaling. Go out and make it happen. Listen, if you want the fastest way to get into wholesaling, jump on board with our co-wholesaling course – REI Quick Cash System, and we can skyrocket your business model as well.

Click Here to Download my Co-Wholesaling Blueprint ($197.00 Value) for FREE

What Is Wholesaling?

What is Wholesaling?

What Is Wholesaling Real Estate

What Is Wholesaling Real Estate

Great question! What is wholesaling? Well, wholesaling is a misconception. It is not an investing strategy. It is more of an investing exit strategy. It is very important that you understand that because strategies are really about how we are making money like if we are rehabbing and lease options. Wholesaling should never be a primary strategy. It should always be an exit strategy, but when you are first starting out, your primary strategy is exiting out of as many deals as possible. So, wholesaling becomes the primary focus for most investors. It is a beautiful thing because there is little risk involved. There is no money needed. There are no loans needed. You do not need a whole lot of money to go out and do it. In some types of wholesaling, you do not need any money to do it.

Talking about that, there are so many different ways that we can wholesale. I am going to talk about those as well, but what I want you to be clear on is that wholesaling is really nothing more than the art form of controlling properties through contracts and then we assign our rights to those contracts to a new buyer. That is something that you want to think about when you are looking at this model because what we are doing is contracting the property and we are choosing not to close on it. So, instead of letting the deal go away, we still want to exit out of the deal and make money. So, we find a new buyer and we assign our rights to a new buyer.

Now, also understand this. Wholesaling, true wholesaling is where you never close on the property. You never actually buy the property. You never actually show up on the title. You never actually close or do any of that. You never go into escrow or anything because you are assigning your rights to that contract to a new buyer through what is called an “assignment contract.” At that point, the new buyer is the one that closes. They are the ones that go get the money. They go to escrow. That is something that you want to be very clear about.

Wholesaling is so many things. If anyone ever pigeon holds you and says that it is “finding properties as a discount and finding a cash buyer,” well, the problem is that is someone who has not experienced wholesaling or knows wholesaling like I do. I have been wholesaling for nine years now. There are so many different ways.

You have what is called “traditional wholesaling.” You have wholesaling options, wholesaling unsellable properties, wholesaling to a retail buyer, wholesaling REOs which by the way isn’t a true wholesale because in some cases, you have to take the title or close or borrow money, but there are ways to do that using what is called an LLC. There is also wholesaling commercial real estate and also what we know as “co-wholesaling” which is the fastest and easiest way to get started as a wholesaler because it really is truly little to none at all risk in it. There is really truly no money needed in that type of strategy.

When you are looking at wholesaling, just know that it is really about being able to control as much as you can and through contracts, and then selling those contracts to a new buyer for a fee without every closing on the property or borrowing money to close on the property.

There again, wholesaling is a very broad term. Never let someone tell you that it is a pigeon hold or that it is one type of thing. It is not. If they do tell you that, run from them. I will tell you right now that if you want to start as a wholesaler, the fastest way for you to start is co-wholesaling.

Get some more information about what we are doing here. Get some of our free stuff that we have here on the page. Learn a little bit more about it. I will see you guys hopefully on a video training, maybe in the back office as one of our new students, but also, keep reading more articles if you find yourself still looking for some answers.

Click Here to Download my Co-Wholesaling Blueprint ($197.00 Value) for FREE