Sensei Sean Gilliland: Wholesaling

By Christina Suter on Feb 28, 2015 at 01:00 PM in Real Estate Issues

Sensei Sean Gilliland: Wholesaling

A karate master turned real estate investor; Sensei Sean Gilliand is the founder of Black Belt Investors, an investing company that prides itself on disciplined investing and serving its customers. 

"What Is Wholesaling?"

Wholesaling is the foundation of all real estate; it's where we outsource the real estate to others. There are 3 parts to wholesaling, #1- flipping properties without the use of cash or credit, #2- Rehabbers, which are people who invest their money or credit, but still at the wholesale price, and #3- Landlords who buy in whole, to generate passive income. 

"How Did Real Estate Start For You?"

I started flipping in the 90’s and I knew very little, but I put together a team and my team was honest and disciplined and I bought a 42k property, put 17k worth of money in it to rehab it. The problem I had was no rehab money, so I pulled the money off a credit card and rotated the balance between credit cards, and 9 months later I made 9k over it when it sold. I was hooked after that, just like I can't eat just one Doritos chip, I wanted more of flipping. 

"Why or How Do You Choose Certain Cities?"

Before I learned how to choose a market, I had flipped in other states before eventually making it back to CA. Business in all those states helped me learn different markets, and the laws of each state. I was spending so much time on the flips so I figured out how to make it easier, by delegating jobs and I looked at where I was getting my properties. One of my sources was a guy who went by the name, Mr. Wholesaler, and I started doing what he was doing, flipping properties without the risk. I learned a bunch of other techniques and now I can wholesale, rehab, and purchase and those options helped me to thrive during the recessions.

"How Have You Made Your Work Profitable?"

I go into primary markets in CA, Phx, and Vegas for dirt-cheap. I wait for the hedge fund buyers raise the value, then I cash out, and move over to the Midwest. There I buy property for cheap, wait for the hedge fund buyers to exhaust the primary market and when they come to the secondary market, I let them raise the value there, and then move to the suburbs of places like Cleveland. There I buy residential properties for low prices, like 40k, and I wait for those to go up in value. When the hedge fund buyers exhaust places like Kansas city during recessions, which happen every 10 years or so, and once the recession is over we pull our money out of the lower markets and move it to the primary market and start over again. 

I learned that once you make enough money you start creating wealth. Build your portfolio after you’ve built your income streams.


Contact Sensei at | (951)280.1900 | [email protected]

As an added bonus, he is giving away a free fix and flip calculator to all who contact Black Belt Investors and ask for one.