Why Wholesale?

[Devon Woodson]

I live in Washington state, about 2 hours west of Seattle. I have about $1,000 and some books I received at a Rich Dad 3-day workshop. I don't have a job, I separated from the military in March and have been getting paid to go to school, along with my disability and unemployment which all totals out to about $4000/month. However I am told I cannot use the GI Bill or Unemployment as a proof of income, leaving me with $700/month. This may seem unimportant to the wholesale topic, but it was brought to my attention after I called numerous real estate agents looking for one to work with. They told me it was going to be hard to get a loan even though I have a 700+ credit score. The reason why I would be interested in getting a loan is because everyone here seems to agree we are in a sellers market and agents have told me to my face that they tell their sellers to avoid contracts that say "and or assigns on them." Which means I would need to do a simultaneous, or double closing (at least to my knowledge). Anyways, between BiggerPockets and the agents I spoke with, wholesaling already gets a very bad reputation as is. So what am I to do?

I feel stuck. I have no money. I don't know any one/investors (other than an agent who is willing to work with me). And I have to take my son with me almost everywhere I go. My wife is still in so she has to stand post at night and sleeps during the day. I have about a 3pm-6pm window on the days she works, but the days she does work is even screwed up because there's no "set" schedule. She is so against putting him in daycare and we have no one we trust to watch him [being in the military puts us 3000+ miles away from our family and friends]. I feel 50/50 about putting him in daycare because I agree there's a lot of crazy things going on in the world, but at the same time I'm so ready to make some money! Either way, I don't think I would go against my wife with her having such strong feelings.

Putting yourself in my shoes, what would you do? There was a Satelitte meeting for my local REI club this past Thursday and I was left contemplating whether or not to take my son with me because my wife was already at work. I didn't go. My son is only 10 months old and can be very loud and very needy (obviously), I felt like it would've been very unprofessional, not to mention I wouldn't have been able to focus anyways.

Thank you.

[Ryland Taniguchi]

Welcome to BP,

I think a lot of people have circumstances just like yours and still succeed in real estate. There will always people that say you can't do it... even other investors saying you can't get in without having money for marketing. The amazing thing about human potential is that you can do anything that you take massive action on. 

In Washington State FYI, you can't do a double closing no more. No title or escrow will do that here. So, you'd be doing a contract assignment. 

Here are the typical costs associated with wholesaling:

1) Direct Mail. You can wholesale without doing direct mail or online marketing. I'm mentoring 3 people right now that are doing it with no money out of pocket.

2) Business Cards. Business cards can be a very cheap and effective way to market, but you don't need them. Pick up the phone and have conversations a day. I literally get deals every day by calling people. 

3) Earnest Money. 

4) Attorney Fees for Assignment Contract, Subject To Contract, Lease Option, Purchase and Sale Agreement, etc.

5) Educating Yourself. Bigger Pockets is awesome. 

For #3, #4, and #5, find an experienced wholesaler or flipper and partner with them 50/50 to have them pay for Earnest Money, provide contracts and show you the ropes. 

Now, it's possible to wholesale without any money. But the real question is, are you the type of person who makes excuses or doesn't follow through or get distracted? Do you have the right mindset for success? Do you take massive action? If you don't take massive action with the right mindset and don't focus, then you will not be able to make money in real estate (or in anything for that matter). 

If you can take massive action, anything is possible. If you can't, you'll be the 9 out of 10 that check out real estate and move on. 

Good luck with your real estate adventure!