We are joined by Matthew Miller, co-founder of Fair Trade Real Estate, California’s largest wholesaler. Learn how Matthew transitioned from the Army to a thriving real estate career, built a successful business, and what it takes to excel in the competitive wholesaling market. This episode is packed with insights, covering everything from the basics of wholesaling to advanced strategies for success. Whether you’re a seasoned investor or new to real estate, this episode is a must-watch!
Matthew Miller’s Journey into Real Estate Wholesaling
Matthew Miller’s path into real estate wholesaling is anything but conventional. Originally from Northern California, Miller joined the Army at 17 and spent four and a half years serving before returning to civilian life. After a stint at UC Davis Medical Center and pursuing higher education, Miller’s life took a significant turn thanks to a friend in Dallas who was thriving in the real estate wholesaling industry.
In his late twenties, Miller moved to Houston to join this burgeoning industry. He started in a disposition role, responsible for selling homes to investors, which required mastering various aspects of real estate, from construction to investor needs. His hard work and dedication paid off as he transitioned to acquisitions, a more analytical role where he felt more comfortable. Eventually, Miller’s leadership skills saw him managing teams and expanding operations to the West Coast.
Understanding Real Estate Wholesaling
For those unfamiliar with real estate wholesaling, it’s essential to understand how it differs from traditional real estate transactions. Unlike flipping, where properties are renovated and sold to owner-occupants, wholesaling involves finding properties that are often unfinanceable due to conditions like termite damage, outdated features, or structural issues. These properties are bought below market value and sold to investors who either flip them or hold them as rentals.
Miller explains that wholesaling is a business-to-business sale. The primary goal is to source properties at a price that leaves enough margin for both the wholesaler and the investor. This process involves extensive training and understanding of the market, as well as building strong relationships with both sellers and buyers.
Navigating the Wholesale Process
Miller’s experience in Houston laid the foundation for his success. He highlights the importance of understanding the two critical parts of the wholesale transaction: property acquisition and disposition. In his early days, Miller wasn’t a natural salesperson, but his analytical skills and willingness to learn allowed him to succeed.
The process of wholesaling can vary in complexity. For example, properties often come with various legal and logistical challenges, such as liens, multiple parties on the title, or probate issues. Navigating these challenges requires experience and a deep understanding of the market.
The Importance of Training and Mentorship
Fair Trade Real Estate places a strong emphasis on training and mentorship. Miller’s career progression from sales to acquisitions and eventually leadership is a testament to the opportunities available within the industry. New hires at Fair Trade start in sales, move to acquisitions, and then into leadership roles. This structured approach ensures that agents gain a comprehensive understanding of the business, from closing deals to managing teams.
The Competitive Landscape of Wholesaling
Wholesaling is highly competitive, especially in markets like California. Public companies like Opendoor are significant competitors, buying more homes in Southern California than Fair Trade. Despite this, Miller and his team are driven to become the largest private home buyer in the nation, with a goal to surpass these competitors within three years.
The Future of Fair Trade Real Estate
Fair Trade Real Estate, founded in July 2020, has grown rapidly, expanding from a single office to multiple locations across California. This growth is driven by a focus on agent development and providing value to sellers and investors alike. The company’s goal is to continue expanding, with plans to enter new states and become a national leader in real estate wholesaling.
Advice for Aspiring Wholesalers
For those interested in entering the world of real estate wholesaling, Miller offers practical advice. He emphasizes the importance of education, whether through formal courses, books, or mentorship. While many operators in the industry are small and unlicensed, Miller advocates for joining a reputable company to gain experience and mentorship.
Wholesaling is not without its challenges. The industry requires a deep understanding of real estate, strong analytical skills, and the ability to navigate complex transactions. However, for those willing to put in the work, it offers the potential for significant financial success and career growth.
Conclusion
Real estate wholesaling is a dynamic and lucrative field, especially for those with the drive and determination to succeed. By focusing on education and hard work, aspiring wholesalers can carve out a successful career in this competitive market. Whether you’re an investor looking for great deals or a new agent seeking an alternative path in real estate, wholesaling offers exciting opportunities for growth and success.
Matthew Miller’s Contact Information
- About Matthew Miller https://www.linkedin.com/in/mattmillerrealestate/
- Contact Fair Trade Real Estate https://fairtraderealestate.com/contact-us/