Wholesaling business plan - Financial model

[Carlos O.]

I'm working on my business plan for wholesaling; specifically the financial model section. Here is where all the fancy what-if projections go. However, I need some help. I'm specifically looking to wholesale in the LA area of southern CA. What I am looking for is just some basic ballpark estimates I can plug into the financial model section.

1. As a newbie, what kind of profit am I looking at for each deal in my area? $2K, $5K, $10K? I understand that part of this is how good of a deal I can provide, so let's go with an average here.

2. I absolutely plan on keeping track of all my expenses through GNUCash (think open source Quickbooks). Can someone share their numbers on business expenses or categories? An expense that I would really be interested in knowing is how much does it cost to get a real estate license in CA and the costs to maintain it.

As always, any insight that is provided is very appreciated.

Thanks,

Carlos O.

[Eric H.]

@Carlos O. I am new to wholesaling. I'm working on building my motivated sellers list right now. My list will be compiled by the end of this month. I'm dropping 2500 postcards to start out with and will be mailing quarterly for the entire year. I will be following up to warm leads with a letter and calendar before I convert them back to postcards. The expenses I have incurred include:

• Purchasing Motivated Seller List
• Purchasing Marketing material (postcards and calendars)
• Postage
• Website
• Business Cards
• Lunch with my RE Attorney
• Market Research
• LLC formation
• Personal Labor (I think I'm worth at least $25/hr) :-)

Your expenses will vary but I hope this helps get you started.

See ya round BP!

E. Harris