Wholesaling Advice For Those With No Cash Or Credit
How can new investors start wholesaling and flipping houses with little cash or credit?
Wholesaling houses is generally seen as the go-to launch strategy for those wanting to get into real estate investing. ‘Wholesaling’ is its own strategy, but many often lump it together with fixing and flipping houses, and flipping real estate contracts. Wholesaling is touted as a great way to start for those with little cash on hand or without good credit. It works very well for those that know what they are doing. Still, there are those that scoff at the idea. They point out that it can require effort, and that there can be a lot of competition. So is it really possible to start out with nothing?
There is one simple answer: yes. In fact, those making the most from wholesaling today will rarely use their own cash or credit. So how can aspiring new investors really get the right mindset? What does it take to invest in a wholesale deal without cash or credit of your own?
Get Ready to Hustle
This is the land of opportunity for those that are proactive. You are going to have to tell people you are in real estate, look for deals, send emails or make phone calls, and do some research. If you are willing to hustle, the upside is limitless. Don’t be afraid to get your hands dirty.
Save What Cash You Can
It is still entirely possible to conduct real estate deals with zero cash or your own credit. However, there are often incidentals like deposits, appraisals, inspections, and marketing; all of which are easier when you do have a little cash. Save and put aside what you can, even if it is a couple hundred bucks at a time. Keep saving for reserves, unexpected life expenses, and for bigger and bolder deals in the future. Save as you go.
Determine to Work on Rehabbing Your Credit
You may never need or want to use your personal credit for investing in real estate. That’s okay. However, having good credit can help for your reputation, and is just smart for obtaining discounts on insurances, cell phone service and utilities. Choose to find out how to build up your credit, make a plan, and start working on it.
Find Your Advantage
No matter how little you feel you have, you do have some type of advantage. Give some thought to what that is. What time, knowledge, connection, mindset, or skill advantages do you have that your competitors don’t? It could just be pure determination or creative thinking. It could be a cousin with a print shop for discounted signs, flyers, and mailers. Maybe your brother-in-law is a contractor or handyman.
You have something that you can use to your advantage. Dig in and use it to get the edge. Even if you don’t feel you have anything, have zero dollars in your pocket, and filed bankruptcy yesterday, you can find ways to do deals. Walk neighborhoods, knock on doors, talk to people, make offers, resell those deals, and you’ll be stomping out the challenges in no time.