6 Myths About Wholesaling Investment Properties

I have been a property wholesaler in San Antonio TX for 15 years and I have seen many people come and go in that time.

Below are the most common myths that I see in property wholesaling with San Antonio investment property.

  • You have to have cash to wholesale property: No, it is not essential when you are getting started to have a lot of capital. In many of my deals, I am not actually taking possession of the under market value San Antonio property with cash. Rather, I just have the property under contract for a certain period of time until I find a buyer for it.

Of course, the key is to find a good property under market value, and THEN be able to find a good buyer for the property before the contract expires. Now this is where it DOES HELP to have your own cash. I have my own cash, so if I have not found a buyer yet, I just buy it myself with cash and mark it up, and then put it for sale again.

  • You can be an effective wholesaler without knowing the market well. Some investors really believe this, but the fact is, I am able to find great under market value investment properties in San Antonio because I am a local market expert. I often do not even need to look at comps to know what a property should sell for.
  • You have to be rich to do well in real estate from the start. I didn’t have much capital when I first started in real estate investing and had $40,000 in college debt. But by 28 I was financially retired, only my sixth year in real estate.
  • You have to have a real estate license to be a property wholesaler. Nope! I made a couple million dollars in real estate wholesaling in San Antonio before I got my real estate license. I do like having my real estate license now, because I am no longer dependent on real estate agents to show me properties.
  • You don’t have to have a lot of experience to be successful in wholesaling. In my view, you do need to have experience, but you can gain a lot of that at the beginning by working with expert real estate investors. If you don’t have much experience in real estate investing, you should pair up with an expert to help you get to know the ropes (such as yours truly but you do need to have cash to invest).
  • You have to borrow money from banks. No way! I borrowed more than $2 million from private investors when I first got started in under market value real estate investing in San Antonio. You just have to ask around, but you can eventually find money to borrow, if the deal is good enough.

I now am a successful property wholesaler in San Antonio, and so can you if you remember most of the above.