The Ultimate Real Estate Investing FAQ: 50 Questions Answered

Introduction

Whether you are closing your first wholesale deal or scaling to multiple flips per month, questions are constant in real estate investing. And with every new deal, a new question comes up.

This guide pulls together the 50 most common questions real estate investors ask. These are questions beginners are Googling, advanced investors are debating, and software users are typing into CRMs like REsimpli.

Use this page as a reference, a learning tool, or something to share with new hires. Every question links back to a concept REsimpli helps you manage in your day-to-day operations.

Getting Started

1. What is real estate wholesaling?
It is the process of getting a property under contract and assigning that contract to a buyer for a profit, without actually buying the property.

2. What is house flipping?
It means buying a distressed property, renovating it, and selling it at a higher price for profit.

3. How much money do I need to start investing in real estate?
It depends. Wholesaling can start with under a few hundred dollars. Flipping and rentals usually require funding or financing partners.

4. What is the BRRRR method?
Buy, Rehab, Rent, Refinance, Repeat. A strategy used to build a rental portfolio by recycling the same capital.

5. Do I need a license to wholesale real estate?
In most states, no. But laws vary. Some states require disclosure or limit how you market contracts.

Lead Generation

6. How do I find motivated sellers?
Use driving for dollars, cold calling, direct mail, PPC, probate lists, and tax delinquents.

7. What is skip tracing in real estate?
It is the process of finding a property owner’s phone number and email using data providers.

8. What is list stacking?
It is combining multiple lead lists to identify owners who appear on several lists at once, signaling higher motivation.

9. How do I pull lists of leads?
Use software like REsimpli’s List Pulling tool or services like PropStream and ListSource.

10. What is a good cost per lead in real estate?
It varies by market and channel, but wholesale CPL can range from $20 to $150 depending on quality.

Lead Management

11. What is a CRM in real estate?
A Customer Relationship Management system helps you track leads, follow-ups, and deals.

12. What pipeline stages should I use in my CRM?
New lead, contacted, qualified, follow-up, offer made, under contract, closed.

13. How do I qualify a motivated seller?
Ask about their reason for selling, property condition, desired timeline, and price expectations.

14. How often should I follow up with leads?
Every 2 to 5 days for hot leads. Weekly or biweekly for cold leads. Use drip campaigns for scale.

15. How does REsimpli help with lead management?
It automates tagging, scoring, follow-up tasks, and lead routing into your custom pipeline.

Deal Analysis

16. What is ARV?
After Repair Value is the estimated value of a property after full renovation.

17. How do I calculate MAO?
Maximum Allowable Offer = (ARV × 70 percent) minus repair costs minus assignment fee.

18. What is a repair cost estimate?
It is an itemized list of what it will cost to fix the property. Use cost per square foot or contractor bids.

19. How do I run comps?
Look for sold properties within 0.5 miles with the same bed and bath count that were sold in the last 6 months.

20. What is cap rate?
Capitalization rate = Net Operating Income divided by Purchase Price. Used for rental investment analysis.

Marketing and Follow-Up

21. What is a drip campaign?
A sequence of automated texts, emails, voicemails, or mail pieces sent to leads over time.

22. What is RVM?
Ringless Voicemail is a pre-recorded message sent directly to a voicemail inbox without ringing the phone.

23. Can I automate follow-ups?
Yes, REsimpli allows SMS, email, RVM, and even direct mail automations triggered by lead activity.

24. What is speed to lead?
It refers to how fast you respond after a lead submits info. Faster responses lead to higher conversions.

25. How do I track marketing KPIs?
Use your CRM’s dashboard to monitor cost per lead, lead to deal ratio, and campaign performance.

Acquisitions and Offers

26. How do I make a cash offer on a property?
Calculate your MAO and present a written or verbal offer, often with an earnest money deposit.

27. What if the seller rejects my offer?
Reframe the conversation, revisit after a few weeks, or enter them into long-term follow-up.

28. How do I handle objections?
Use empathy, restate their concern, and offer data-backed solutions. Practice objection handling with your team.

29. How do I send a contract to a seller?
Use e-sign tools like REsimpli’s built-in eSignature feature for fast, legally binding delivery.

30. What happens after a contract is signed?
You begin the due diligence, title search, and either assign the deal or move forward with the purchase.

Disposition

31. What is disposition in wholesaling?
It is the process of assigning the deal to a buyer and collecting your assignment fee.

32. How do I build a cash buyers list?
Network at events, post in Facebook groups, run ads, and use public records to find active buyers.

33. What is an assignment contract?
A legal document that transfers your purchase rights to a buyer for a fee.

34. How do I market my deal to buyers?
Use email blasts, text campaigns, your buyer CRM, and platforms like REsimpli’s buyer database.

35. What happens if a buyer backs out?
Have backup buyers ready. Always collect nonrefundable earnest money.

Closing and Beyond

36. How do I open escrow?
Submit the purchase contract to a title company or closing attorney to start the closing process.

37. How do I get paid in a wholesale deal?
Your assignment fee is paid at closing from the buyer’s funds.

38. What is a double close?
You buy and sell the property on the same day, using two transactions to protect the purchase price.

39. Can I wholesale a property with a mortgage?
Yes, as long as your contract price covers the mortgage and the seller agrees to the terms.

40. How do I handle taxes as a wholesaler?
Track all income and expenses. Consult a CPA. Many investors file as S corps or LLCs.

Tools and Systems

41. What CRM should I use?
REsimpli is designed specifically for real estate investors with built-in lead, call, and campaign tracking.

42. What is list pulling software?
It allows you to search and download leads from public records based on criteria like equity, property type, and sale date.

43. Can I make calls and texts inside my CRM?
Yes, REsimpli includes a built-in dialer and SMS platform for managing conversations in one place.

44. What is call tracking?
It means assigning phone numbers to marketing campaigns to measure where leads are coming from.

45. How do I integrate email into my CRM?
REsimpli integrates with Gmail and allows full conversation sync inside each lead profile.

Mindset and Strategy

46. What are the biggest mistakes new investors make?
Not following up, overpaying, relying on one lead source, or skipping due diligence.

47. How do I stay consistent with lead generation?
Schedule campaigns monthly, track metrics, and treat marketing like a utility bill, not a luxury.

48. Should I focus on one market or go virtual?
Start local to learn the ropes. Expand virtually when your systems are dialed in.

49. What separates successful investors from the rest?
Systems, consistency, follow-up, and discipline.

50. How can REsimpli help me scale?
By combining lead generation, marketing, acquisitions, disposition, automations, and analytics into one platform, REsimpli reduces tool fatigue and helps you close more deals with less effort.