Advice on Wholesale

[Brittany Chrismer]

Hey everyone!

I am currently in the efforts of paying off debt and getting into rental real estate to receive the cash flow so that I can stop working a W2 job and be able to live anywhere that I want to without worrying about a new job (remote or physical.) To do the debt I am currently working 84hrs weekly. I am on track to have my liabilities all cleared by Dec-Jan, but I'm wanting to also try getting my first wholesale contract done within this timeframe so that I have a little bit of capital. The timeline is due to personal reasons and the reason for trying hard to get my first wholesale profit by then is tied into that, with the amount not even needing to be substantial as it is a big part proving to someone that I can accomplish this goal.

For the question regarding wholesale: I am hoping to receive advice in general for how I can possibly get a contract as quickly as I am needing to. I have the drive to do so, but I want to start getting information and tips for this process as soon as I can and as clearly as I can, so that way I can meet my deadline.

I've looked into it, listening to the podcast episodes about wholesale while at work, created a project proposal with data and rough calculations for personal finance and also deal scouting, and I'm researching every moment of my spare time, BUT: I'm having a hard time with everything going on in my life to formulate the information into a proper attack strategy of "do X, then Y, then Z"

Are any of you able to offer me your wisdom and insight for a basic breakdown of how I can do this? If you also have examples for me to study or scenarios for me to practice, that'd be amazing.

I come from a family of extreme generational poverty and I am trying to break free from that despite life continually handing me setback after setback, struggling with mental health, and now my relationship being on the line when it was the only thing making me happy.

The market I would be in I imagine is my area (Appleton in Northeast Wisconsin) unless remote wholesale is something that someone has good information about and feels it'd be beneficial to my specific scenario here.

Sorry for the long post or if I had over shared, but I want to make my ambitions and reasonings clear so that my extremely difficult timeline doesn't immediately make me seem like I am delusional in the amount of work it is going to be, especially while working as much as I do at my W2 job. It's a deadline that I truly have to meet and is causing a lot of momentum for me starting. It might be improbable but I don't believe it is impossible.

Thanks!

[Marcus Auerbach]

@Brittany Chrismer - welcome to BP and good for you for taking matters in your own hand! I don't want to sugar coat it, but you need to know this. It takes a long time to build a real estate business to replace your income. For most people a 5-10 years, I was no exception. While you get there you need a strong W2 income. If you quit your job too early, you loose your ability to finance. So while you build your REI on nights and weekends, you have to also develop your W2. There is just no quick magic solution around this.

Wholesaling is one of the hardest things you can try to master, because you need build so many different skills: marketing, talking to strangers in distress, understanding comps, understanding construction issues and repair cost, rents etc. It can be done, but there is a lot to learn and master. Like you said not impossible, but improbable to replace your W2 with that any time soon. 

A much easier path is buy and hold. Start with house hacking a duplex, after a year you can buy another one. But you'll need a W2 for this.

If you are hell bent on wholesaling, here is what I would do. Start by driving for dollars. Look for tall grass, leaves, soon snow that has not been shoveled. Try to make contact with the owner and see if they are willing to sell. Learn skip tracing. If you have a lead that looks interesting, bring in an experienced local wholesaler (make a list of who they are in Appleton) and split the profit with them. Let them do all the comps, evaluation and contracts - watch and learn.