Wholesaling VS Real Estate agent

[Jay Hinrichs]

There is a lot of back and forth on the wholesaling subject here.. as for whatever reason folks seem to think wholesaling is a beginner occupation.

And while its talked about extensively it relates back to how we thought about real estate sales prior to wholesaling even being a thing and I think there are some very good correlations.

As we know wholesaling is basically selling real estate. .your bringing two unknown parties together to buy real estate and your make a fee /commission for your efforts.

Now in my days when someone wanted to start in Real Estate it was well known that you needed at least 1 year of income in the bank.. And you needed a substantial marketing budget.. if you had those two things along with taking sales training courses  ( hated guru's but necessary because not everyone is a born salesmen)  if you had those things you stand a pretty good chance of not starting an flaming out.

So now we see those talk about wholesaling.. and I think its basically the same.. to think its  a no money deal.. IE you don't need any.. well 1 out of a 1,000 may make it .. but you need to set your self up exactly like you were entering the RE brokerage field.. you need to have Money in the bank and plenty of it.. you need to live without stress and you need a significant marketing budget to be successful.

So it may be of benefit for those thinking of launching into this to save up a little before you try it.

biggest reason small business fail is undercapitalized and your simply a small business and if you have little to no capital you have no staying power.. if you spend all your liquidity and cant get deals in the short term your done... or worse you run up your credit cards and now have nothing to show for it but massive debt.

The legalities of this aside..   In my mind its just like trying to start in the RE sales game..

you need capital you need training and you need the TIME to get your deals flowing// it just does not happen over night.. you can go to REIA's and let the established folks use and abuse your time.. But if you want to be successful on your own.. run it like a business.. start with enough capital learn the craft then succeed.

[Nick C.]

Preach it Jay! Sound advice, the hard part is getting people to follow it...