The Easiest Way to Start Real Estate Investing (No License)

Everybody wants to know this one thing: how do I get into real estate investing? Stay tuned. Now look, real estate investing— there's a lot of things that go into real estate investing. There's fix and flip, there's wholesaling, there's property management, there's buy and hold. But today, by the end of this video, I'm going to explain and tell you exactly how you can get into wholesaling. How does it work? How do you get into it? I'm going to explain all that. I'm also going to explain what is wholesaling, what tools you need to get started with so you can take action, and how to find buyers so you can bring them deals that they will pay you for without having to be licensed, without having to spend any money, without having to have the risk of purchasing real estate, without messing up your credit or even having credit. You don't need any of that. All right, I'm going to show you all that today, so let's dive right in. So what is wholesaling? Wholesaling is signing a contract with someone that owns a property at a discount. Okay, you can't wholesale a property, you really shouldn't, or it won't work. You can't wholesale property that's overpriced because no one's gonna take that deal. They're gonna say, well, I got to make money. You are finding properties or deals for buyers that you have or buyers that you will have. Now, I teach people that only go look for deals where you have a buyer already in place just because it's easier that way. If you just go look for a deal and you don't know who your you're going to sell it to, you're going to have run into a lot of problems and headaches. But what you're doing is you're getting a contract with a seller and you're saying, hey, I'm going to buy your house for $40,000. Okay. I know it's worth $100,000 and you know it's worth $100,000, but it's not worth that at the moment. Maybe if we fix it up and that seller says, okay, yeah, I understand my house is not worth $100,000 now and I don't have $30,000 or $40,000 to put into it and the time and the money and I don't want to put the effort into that. So you're saying, hey, I'll just buy it and I'll take care of it and I'll pay you what it's worth right now. You sign a contract for 40, but you have a buyer you already know has told you, I'll pay 60 for anything in that area. That's a 3/2 or a 2/1 or whatever, wherever you are in the United States. So you call up that buyer and if you do it the way I teach you, you probably already had a conversation with him before you put this house under contract and you've just said, hey, I have this house, I'll give it to you for 60. And he'll say, no, no, no, I got to be at 57. Then you can negotiate. That's fine. But you assign it to them. You got it at 40. You give it to them for 47. You make $17,000 all without having to have the house purchased. Purchase the home without having to have to do really do anything other than sign the paperwork and find the deal, right, for the buyer. That's in a nutshell is what wholesaling is. So what tools do you need to start wholesaling? Well, it really depends on what level, what strategy you're at right now. So if you're a brand new beginner, I would recommend calling on the MLS, doing a lot of on-market outreach. Now, what is on-market outreach? People primarily, they sell their home on the Multiple Listing Service. They list their house to the real estate agent to sell. Even if someone is distressed and they have a bit of a crappy house, most people will list their home. They just don't know of any other way. They don't know of cash buyers. So you can find good deals on the MLS. You can see that homes are listed and they need work, and you can call that agent that represents that seller and say, hey, I'd like to make an offer. Now it gets way easier when you're doing this if you already have buyers in place and you know what they're willing to pay, or even just asking them what they're willing to pay. So having that tool of the MLS and making calls to agents is what you need if you're brand new. Now as you get more experience, I would recommend Marketing is a great way to get deals, whether you're cold calling with batch dialer, whether you're texting with batch leads. You can do mail, you can do pay-per-click, but I wouldn't recommend doing a ton of marketing until you have, you know, experience and you know how to navigate deals. Because when I first started, I went out— this is what they told me to do— they said, hey, just go market. So I went and spent $10,000 on mail because I was like, oh, this will give me a good return. I spent that money, didn't get any deals from it. So I was like freaking out because I lost $10K. If I had to go back, I definitely wouldn't have done that, or I would have had a buyer in place and been like, where do you buy? And if I had a call from someone that called me back from the mail, I would have said, hey, let me, let me find out what I could pay for your house. And then I would connect them to my buyer and I would try to make money that way. But as you go further, the tools that you'll need as you get more experience— well, marketing tools. Okay, so as a beginner, just get a phone, start making deals or making offers on the MLS with agent outreach. It's free. And as you get more experience, go more into marketing. So once you understand what wholesaling is and what tools you need and kind of how to get started, you're going to need to find buyers. But look, before we get into finding buyers, I want to ask you guys to come to my masterclass. I have a free masterclass where I dive in really in-depth on a live call, and it's absolutely free to get started. So go to painlessholesaling.com and register for it. I'm going to show you step A through Z on how to get a deal. Right? Because I actually did a 30-day challenge, me and Nathan Payne, who's on my team. For 30 days, we went to a market with no money and no experience and no buyers, and we both got deals within 30 days. I got a deal within 17 days. I think Nathan got his within like 25, but we were able to do it with no money. So what we teach, it literally works, it makes money, and we show you exactly how to do on the masterclass.

So be there.

So like I was saying, you want to have buyers as you get into wholesaling so you can get started that way. I actually have a breakdown in in-depth breakdown video that I've done in the past. I'm going to have you guys watch. This is going to show you exactly what to do as a brand new wholesaler, how to get started as a beginner, how to make money. Check this out. Let's dive right in.

So let me give you the story of how we got this and how you can avoid what happened to us, okay? This is what happens when you joint venture a lot of the time, is you don't have access to all the information because you're relying on other people. And this isn't to throw anyone under the bus, I'm just letting you know this is what happened. I'm in a couple different groups for coaching, right? I help people learn how to wholesale, to do it efficiently and effectively and all that. And what was happening was this girl comes on the call and she's like, hey, look, I have a lead. It's a seller. I need to find a buyer. It's a piece of land. And I've been talking to the seller for a couple months. Can you help me find a buyer? I said, sure, I can help you find a buyer. That's what I do. Let's split the deal 50/50. She got the contract. I got the buyer. So we said, send us your contract. We'll sign the JV agreement. And she did. So we looked at it. We checked on Batch to see if he was really the owner. It says that he was the owner. So we're working this deal. I never talked to the seller. I just rely on Nathan Payne, who works with me, to talk to the seller and the girl that we were JVing with. So there were some red flags in the beginning. The guy was selling it like a super deep discount. And usually when I talk to a seller and they're selling super, super low, I ask them like, why are you selling so low? Because you can get more for this house. So I never had that conversation with him, but one of the red flags was I think the land retailed at like $350,000. And the guy signed for like $120,000. So we spent about a week or two trying to find a buyer. We eventually find people that are willing to pay what we're asking, but they want a 30-day close because land, I think they needed to like verify a lot of things before they jump into it. What happened with that is it came down to like the last week. No, we weren't able to find any cash buyers, but that would close on it. But we did have one guy that we were tight with and he was like, dude, I'll pay $170,000. But you know, I need to close on Monday, like the day after we had to close.. And we were like, dude, we can't do that. Cause it was a great deal. We were scrambling to learn how to buy the property with hard money. And we found somebody, but there were just some red flags because we had called the seller and we were like, hey, look, can you give us a little bit more time so we can close and get our funds ready? And he started like ghosting us. Right. And I don't know what his angle was, but he like stopped responding like 2 days before the close date. And I was like, guys, this is kind of weird. Like this guy's been wanting to sell. Quick, and now like we're getting close to close day, he won't even respond, and we're trying to like close, like get the money ready. So when you feel like there's something wrong in your gut, there probably usually is. And I was like, Nathan, can she double-check that she's talking to the right guy? This just sounds fishy. And what had happened is this guy, the seller who had signed in the guy's name, for some reason she got his number, she called one of the numbers, and this guy was like, yeah, I'm Steven. And he talked to her, he signed the agreement in Steven's name and everything, and she had been dealing with the wrong guy the whole time. Like, it's just scammer. And I think what he was trying to do is just have someone just send them money. I don't know what his angle was, how he thought he was going to get money, because you're not going to get paid anything. We found out that was the deal because he wasn't responding. And I was like, man, this isn't making sense. So that's what happened. And after researching who the owner was, we found out this guy was an attorney and owned multiple properties. So I'm not saying all this to scare all of you, but you can use batch leads to find out who's the owner. You can use the data to find out more information. Maybe you can quiz them on it, like, how old's the property? Or how long have you owned it?

Questions that only the owner would really know that Batch has.

And maybe he might know it too. Maybe the scammer's got a Batch Leads account, who knows? But what you got to do is verify. And if something feels off, it usually is. Apparently, after we called the real guy, the girl that we were working with called the real guy, he said, yeah, this has been happening a lot. This guy's been trying to scam people on a lot of his properties. But to avoid this, everyone, make sure when you're talking to sellers, if you feel like something's off, they don't know a lot about the property or something's wrong, or you're not talking to the person bump that, like, forget that, right?

Call it out.

So anyway, that's the exciting portion, man. I thought I was going to make like $100K last week and it was a dud, you know, but who cares? If you think of questions, it's fine. I got to call this buyer back.

All right. So you are asking Nate, how do I find a good market to flip in, right?

Or wholesaling, right? That's right. So what you can do is using data, you can see what areas have the most flips going on. So for example, if you go here to Utah, you can do the whole country if you wanted, but let's just say, okay, I want to know what part of Utah should I be doing deals in, right? So then you can look and see where the activity is, right? There's more activity obviously in Salt Lake City, Utah. There's not a lot going on anywhere else. Does that help? Yes, it does. Thank you. What's up, dude? How's it going? Okay. Yeah, Diego. There you go. All right. We're going to teach you how to comp a property right now. Are you ready? Wait, let's do it. I love it.

So here's the property. It says that he bought it for $28,000, which he told me he did. It says that the estimated value is $168,000.

So if we wanted to do like a quick way, you can go to comparables and this is the property.

It says the guy's in pre-foreclosure. So Batch is like, yes, he's in pre-foreclosure. The property has liens. Yes, it does. Is he in bankruptcy?

Yes.

This guy's pretty much every indicator that there's distress here. So what you do here is you look around and you say, okay, what properties have sold or are active in this area that are within 20% within the last year? So we look here and this is our property right here. This house is a 2/1 sold for $225,000. And yeah, so there's a comp, right?

$225,000.

But the thing is, the problem is the comp. Was sold last year. It says sold date 7. So we all know that the market has changed a little bit over the last couple of months. So that's probably not what it's worth now. So you can go over here, you can see some comps. I think this house is like worth $140,000 from what I've seen.

Do you go over main roads when you do your comps or do you stay within that little bracket or where are you based out of?

I try to, with the data that I have available to me, I try my best to stay as close as I can., but according to this, the data that's available, he lives on a main street, right? So you got to cross it, right?

Unless there was something sold here.

All right. If you like that content, please do me a favor. Like, subscribe, hit the bell icon. I promise you that I'm going to drop more good content. And hey, if you have any specific questions, message me in the comments. Say, hey, Nate, make a video on this. If I think it's a good video, I think if it's something that I can make a video of, I'll make a video for you so you can watch it. But hey, you're going to have to subscribe first so I can see you and you can get notified of all the new videos we do. See you next time.