Wholesale Startup Cost

[James Danchus]

So after a few weeks of research, I have come to the realization that contrary to popular belief, it DOES take some money to start a wholesaling business.

My question to experienced wholesalers out there is, how big of a budget did you start with when you started yours?  

 By my estimates, the first month of business is going to cost around $1,500 to pay for the variuos services, buy my first list (1000 leads), and to send out the first/second mailers (3 weeks apart). After which, I'm looking at about $500 per month to keep the mail campaign running in 3 week intervals (assuming I just use the same list). That means I am looking at $5,500 total investment to keep the business running for 6 months.

Does this sound about right?     

[Braden C.]

A very refreshing thread/question that isn't asked nearly enough by those who want to get into wholesaling. Your initial numbers sound reasonable, however you should be prepared to not get a deal and have the flexibility to either lose that $5,500 entirely or spend more money if you feel like you can eventually make the business work. 

Obviously in addition to your $5,500 for the business, you should have AT LEAST six months of living expenses saved up as well, unless you plan on continuing to work a job. 

New wholesalers often don't plan ahead and find themselves in a bad financial situation quickly. That situation turns into desperation and they'll put just about any "deal" under contract in hopes that they find a buyer. Now, they send out a bad deal to their cash buyers list that they've worked so hard to build and instantly lose credibility. 

It sounds like you're properly planning and thinking ahead, good job!