Wholesaling Realty - or is it Reality
Don KonipolBusiness Member
Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votesAfter 15 years of enjoying and learning, and teaching on BP, something has occurred to me. Most people new to real estate are influenced by YouTube videos, guru seminars, podcasts, workshops, or real estate how to books. And those interested in buy and hold, fix and flip, cash flow investing, STR, etc all have some serious misconceptions about the time, effort, capital, expenses and ROI associated with it. But, those interested in wholesaling go way beyond this. A great majority of these wannabes are almost delusional when it come to their chances of successfully wholesaling properties. I don't know if this is because the gurus who sell wholesaling mentorship's have nothing ‘solid" to sell (there is no "investing", it's a job), if it's because that most wannabe "wholesalers" possess no capital, or because they have no experience.
It’s sad because millions of people have a desire to “better themselves”, have worthy goals of financial independence, freedom to spend more time with family, and provide better for their children. Their motivations are honorable, but their lack of understanding of business, free enterprise, and finance leads to horrendous decision making. It’s a shame that the anti capitalists got hold of control of our education system, and as a result we are producing people with an inability to identify a viable business program from a non viable one.
Hey @Don Konipol,
Great post! I'm constantly responding to posts in the wholesaling forum because I want to help people set realistic expectations so they don't give up after only four months in the business. Many people view wholesaling as a desperate measure to build capital because of how it is portrayed on the internet. I actually started out flipping houses and then transitioned my business to full-time wholesaling. Wholesaling is just like any other business; you need to build systems and procedures, invest more in marketing, and constantly improve your team's sales and communication skills. It took me about seven months to get consistent deals and to identify the areas I needed to work on more, and I still do.
"They all have serious misconceptions about the time, effort, capital, expenses and ROI associated with it" This leads to people conducting business inappropriately, resulting in the negative stigma that @Katlynn Teague mentioned in her post.
After 15 years of enjoying and learning, and teaching on BP, something has occurred to me. Most people new to real estate are influenced by YouTube videos, guru seminars, podcasts, workshops, or real estate how to books. And those interested in buy and hold, fix and flip, cash flow investing, STR, etc all have some serious misconceptions about the time, effort, capital, expenses and ROI associated with it. But, those interested in wholesaling go way beyond this. A great majority of these wannabes are almost delusional when it come to their chances of successfully wholesaling properties. I don't know if this is because the gurus who sell wholesaling mentorship's have nothing ‘solid" to sell (there is no "investing", it's a job), if it's because that most wannabe "wholesalers" possess no capital, or because they have no experience.
It’s sad because millions of people have a desire to “better themselves”, have worthy goals of financial independence, freedom to spend more time with family, and provide better for their children. Their motivations are honorable, but their lack of understanding of business, free enterprise, and finance leads to horrendous decision making. It’s a shame that the anti capitalists got hold of control of our education system, and as a result we are producing people with an inability to identify a viable business program from a non viable one.
After 15 years of enjoying and learning, and teaching on BP, something has occurred to me. Most people new to real estate are influenced by YouTube videos, guru seminars, podcasts, workshops, or real estate how to books. And those interested in buy and hold, fix and flip, cash flow investing, STR, etc all have some serious misconceptions about the time, effort, capital, expenses and ROI associated with it. But, those interested in wholesaling go way beyond this. A great majority of these wannabes are almost delusional when it come to their chances of successfully wholesaling properties. I don't know if this is because the gurus who sell wholesaling mentorship's have nothing ‘solid" to sell (there is no "investing", it's a job), if it's because that most wannabe "wholesalers" possess no capital, or because they have no experience.
It’s sad because millions of people have a desire to “better themselves”, have worthy goals of financial independence, freedom to spend more time with family, and provide better for their children. Their motivations are honorable, but their lack of understanding of business, free enterprise, and finance leads to horrendous decision making. It’s a shame that the anti capitalists got hold of control of our education system, and as a result we are producing people with an inability to identify a viable business program from a non viable one.
I do know that the market is being flooded by fake buyers.
I see a theme and a repeated message that is preached and that is start wholesaling to raise capital. This message is typically presented by people that never wholesaled. To successfully generate leads a persons going to spend in the thousands of dollars monthly that has been my experience.
The. gentleman that acts like you get all the leads for free off the Internet that is trying to sell his services is not being fully forthcoming on the truth or his agenda. I would tag his name, but he has a tendency of trying to hijack every thread possible for personal agenda.
Don, you do make a great point. I started my wholesaling journey with a nationwide brokerage. It takes countless hours and lots of money to get a start in this field. On top of that, I also have my real estate license. Starting through this process has made this journey so much better. Wholesaling is a full-time job, you need to be actively working at least 60 hours a week to start making any progress. This is not something you do "part-time"
I work with a lot of wholesalers and agents here in the Atlanta market. The majority of the wholesalers I have tried to work with really have no idea what they are doing. These are the types of people that give a bad stigma to wholesaling as well as tarnish someone's thoughts about other wholesalers. Going through the forums you will see a trend of comments amoung investors. They only work with a handful of trusted wholesalers who have built relationships. The moral of the story, there is a definite difference between a wholesaler and a "wholesaler".
Hey @Don Konipol,
Great post! I'm constantly responding to posts in the wholesaling forum because I want to help people set realistic expectations so they don't give up after only four months in the business. Many people view wholesaling as a desperate measure to build capital because of how it is portrayed on the internet. I actually started out flipping houses and then transitioned my business to full-time wholesaling. Wholesaling is just like any other business; you need to build systems and procedures, invest more in marketing, and constantly improve your team's sales and communication skills. It took me about seven months to get consistent deals and to identify the areas I needed to work on more, and I still do.
"They all have serious misconceptions about the time, effort, capital, expenses and ROI associated with it" This leads to people conducting business inappropriately, resulting in the negative stigma that @Katlynn Teague mentioned in her post.
