Whats the best use of 5,000$ to build my new wholesaling business

[Tony Stephens]

We are in the beginning stages of building Our wholesaling business, and only have 5,000 dollars. What would be the best use of this money? The websites are built and I have a small cash buyers list built ( not sure how good yet ) but, I don't want to waste money on advertising that's not going to work or buying some software that won't do me any good. Any help would be appreciated.

Thanks, 

Tony Muhammad

[Jay Hinrichs]

Legalities aside.. as you know is it legal or not legal to assign contracts in FLA is hotly debated.

but I was just at a RE conference it was a private invitation only mastermind thing.

and there were some of the top wholesalers in the country there.. some that are even on this site.

one thing that was evident to me though to be successful at this.

requires

1. A LOT of capital  

2. With this capital you need to be spending 10 to 30k or more PER month on lead gen.

3. you need to be vertically integrated and have salesmen/women working for you. I think women are better at this frankly. 

4. You need robust back end systems for tracking and escrow flow.

5. you need some pretty good analyticals in your office to figure out values.

6. you need very good idea on rehab construction and budgets.. 

So in my mind as I look at this and again legalities aside for me I would simply close on everything and resell.

but I am thinking I would need 500k or so in cash to really jump into this a build a business.. 

The other thing I gleaned from this is its highly regionalized.. areas of older stock HIGH % of rentals wholesaling was much more viable.. areas of stability and owner occ and no boarded up homes much tougher. 

Most of these guys were also flipping  building rehabbing etc.. wholesaling was a big part. 

Now I get it that there is this undercurrent that goes around that its the easiest to get into and takes the least amount of capital.. but I also think the vast majority with limited capital spend it lose it and never do anything.. 

And of course I am skewed in my thinking somewhat as these companies are all multi million dollar earners so  there is that to.. And a majority are licensed as well. so when they cant buy it they list it.. so they don't lose the lead..