Wholesaling VS Syndication

[Ethan Neumann]

I am running a wholesaling operation right now generating about 20-30k a month. However, with three partners, we're doing all the work ourselves besides one VA. I'm making the jump to multifamily and want to go all in and put the blinders on. I have some people agreeing with me, however, others say keep the wholesaling biz going and just split time between the two so you have more capital.

Thoughts?

[Erik W.]

$20K-$30K top line or bottom line?  Split among 4 people or that is your split?

The reason I ask is while some syndicators make insane amounts of money, if I were making $20-$30K net profit per month I'd say you have an excellent business model that has proven highly successful and I'd at least try to automate/outsource your secret sauce and keep that income as a baseline for the months (or years) it may take to grow your syndication biz. On the other hand, if 4 other people plus a VA are dividing up those profits, then that may not be sufficient to justify splitting your attention among two projects.

Either way, you've got to figure out how to pay the bills while you get your new venture running.  I recommend having at least 6 full months of living expenses (preferably a year) set back before jumping off the dock.