Systemizing a Wholesale Business

[Joshua Howaniec]

I'm looking to learn how to structure my wholesaling business. I want to create it knowing what jobs need to be done or roles need to be filled. What parts, how much can I structure and turn to a system that only needs me to operate it from the top. I know it won't happen overnight but I need to know what to plan for. 

[Bill Gulley]

Gentlemen, the issue is not being fully aware of the industry, you don't understand residential real estate and that just screams from the question relating to the business side of looking for some system or step by step "method". You're not trying to sell shoes or shovels or Personal Property.

Most of the "investors" on BP are in the same boat, the job owns them and they probably think they are in business. You won't find many entrepreneurs in real estate that are building a business delegating authority to others and coordinating activities as a manager and business owner. You're mixing oil  and water trying to establish systems as an assembly line, we aren't building cars. Real estate is unique, it's Real Property. 

When I began I was in your boat, I sold flooring at 17 and started my company at 18 in flooring, wholesaling to contractors and commercial construction. I was selling personal property, a product where I could broker te same product from a manufacturer to a customer who knew what the product was and sub-contracted layers to install the product. I was simply a flooring broker-sales guy that knew enough about flooring to check the quality of work. Pretty simple. Then the Army wanted to talk to me saying President Johnston needed soldiers for his war. 

Now, there is a process of sages we go through in dealing with residential property, locating possible profitable properties (or inventory), due diligence and acquisition, adding value to  the property, marketing and/or managing. Certain tasks need to be performed especially in your due diligence and acquisitions.

Learning the basics of real estate should open your eyes to  the socio-economic factors of real estate, especially residential, understanding you market, location, zoning, adding value which all ties into marketing to meet socio-economic demands.

Most assume someone will want the house, that can bankrupt you. You need to be aware of time in holding a property, you or your construction buyer, it means money that takes away from profits. You need to understand costs involved, even  in a quick flip. to understand these costs you should know the marketing time, and for the type and style of home in that location. That requires you to understand social influences, market demands, valuation of properties and this ll effects your financing. There is no simple step by step program that teaches these aspects.......and assuming is not good business. 

Most on BP have already spent more time listening to pod casts, reading forums and blogs than it would have taken them to begin and complete a real estate basics course, they are on-line and offered by colleges, real estate schools and business schools.......and I'm NOT talking about REI or guru classes!

You cannot make calculated decisions without an education, otherwise you are hoping to make the right choice relying on luck. 

My dad always tole me "you spend more time and effort trying to avoiding work than if you just did it right the first time!" Yes, I heard that as a kid, lots of aspects of that, most all relate to immaturity. While some things are easier than others, success never comes easy, in time investors will finally come to tat conclusion, success means work and it means an education. The basics or real estate is not on BP or in guru sites, neither are the basics of business, what we talk about is how we might deal in a situation. Know real estate before attempting to deal in real estate!  :)