Taking low barrier to entry out, how difficult is wholesaling?

[Mike Schorah]

I’ve heard many times before that 90% of wholesalers fail, but I never hear who comprises of these 90% and who comprises of the successful 10%.

Of course flipping, BRRRRing, and rentals have a much higher barrier to entry. You must come up with some type of down payment or be willing to talk to enough sellers to do seller finance (Only 3% of home purchases are seller financed.)

So are these 90% of wholesalers who fail people that don’t have $5k in cash for letters and/or are able to cold call enough people? Are these 90% not wanting to wait for 6 months for their first deal? Are they burning bridges with buyers by giving out bad deals? Is this the 90% or is there something else going on here?

I’m curious because I started a direct mail campaign and started looking at properties. Brandon Turner and my local REIAs constantly have encouraged this practice. Although I have some learning to do in regards to estimating rehab costs, I don’t see how, if I did this for a year, I wouldn’t be successful somehow.