Is wholesaling worth doing?

Question

Jerry Puckett · Answer

Well, I can't let Ms Hattie down now can I?

I just haven't posted too much lately since the wholesale hater's club moved in and made BP Nation their home....

I think the explanation Hattie is mentioning is that I can make a whole lot more money with a cell phone than I can with a hammer....I'm good at finding deals and negotiating.

There is quite a bit of money to be made wholesaling, but Hattie is right. You have to keep your pipeline full at all times and always have something to be working on. That takes considerable effort and more money than most people think.

Hattie speaks of turning a deal in three hours, and that's about right on the time you will spend actively working a deal. But in order to do that, you have to have systems in place....you have to be doing your marketing, answering your calls and following up.

Is it worth it? For me it was. I've seen that success repeated many times. I've also seen people fall flat on their face. How hard are you willing to work, and how badly do you want it?

Jay Hinrichs · Answer

Account Closed  god forbid on BP your suggesting anyone pay for training  LOL.

the most successful wholesalers I know have done exactly what you mentioned they paid multi thousands upon thousands for hands on specific training.

the issue right now that is muddying up the water is all these folks with no clue no money no experience think its the place start real estate.. can some do it sure but I bet the mortality rate is better than 95%.  we see them here on BP one day gone the next.. spent borrowed 3k on credit card bought there yellow letters mailed them out did not really know what to do when they did get a lead.. and puff they are gone with the wind...

Account Closed · Answer

There is no money for the amateur wholesaler.

There's a lot of money in it for the professional wholesaler.

Despite what you may have read, wholesaling is not a beginner's strategy.  People who write that bunk say that because it sells the other stuff they are offering not because they know.  Heck, many of them had a ghost writer.  They bought a white label book and just stuck their name on it.

If you want to get into wholesaling because you think it is the place to start, you'd probably be happier going a different direction.

It you want to wholesale because you want to make a business of it, get a professional mentor who will come to your market, work with you one-on-one, set-up and leave you with a wholesaling machine that puts money in your pocket.

Dev Horn · Answer

Click on my face up to the left and watch the video in my profile here on BP.  In it I explain why wholesaling alone is not a viable business right now.

Does that make REI a non-starter if you don't have a big pile of cash?  Not really, you can still START there, as so many have.  Just be aware of the limitations of that strategy, and that there are many ways to make money off real estate - other types of deals, etc.  The more you learn about real estate and different types of transactions/deal structures, you'll be able to convert more leads into deals and make a lot more money.

I also recommend that you consider getting a RE license.  When you start generating leads, you'll find more listing opportunities than you will wholesale deals...

Hattie Dizmond · Answer

LOL...there's definitely money to be made.  The key is getting good deals and keeping your deal pipeline full.

I'm going to attempt to summon the venerable Jerry Puckett of marketing fame here.  Why?  Because Jerry doesn't flip at all.  He only wholesales the deals he closes.  I love his explanation, but I won't steal his thunder. :)

I closed a deal in November with a $10k wholesale fee.  Now, that's not all that much, but that deal alone only took me about 3-hours to analyze, vet and close, and the purchase price of the property was only $106k.  Not bad...IMHO.

Jerry...where are you?

Account Closed · Answer

The problem is the things people hear about on tv and from other sources that shows how to make a quick buck with wholesaling. But we all know that making a quick buck does take some degree of work. And if you dont know the WH business then it wont work.

Dev Horn · Answer

While I know a lot of professional investors who wholesale some or all of the deals they find, we all know that wholesaling is the easiest place to start for a new investor.  Most other investing strategies require more capital or experience than a new investor might have.  So, it's absolutely right to call it an obvious "beginner's strategy", even tho there are plenty of pros that use the strategy, probably with more success than a typical beginner.

Hattie Dizmond · Answer

Thanks, Jerry.

And, as Jerry alluded, the 3 hours was only on that deal. It doesn't count the time  spent fielding the "take me off your list calls" or the time spent with tire kickers and analyzing opportunities that weren't.

It's hard work, but I'm not going to sit here and tell you that any other form of investing in RE isn't. Work is work. It all takes sacrifice.

Adrien C. · Answer

Yes but you'll work your A off to make the good money and to be consistent.

Is wholesaling worth doing?

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