8hrs per day to build Wholesale Business.........what to do with my time?

Question

Good morning BP
I'm a newb wholesaler, i'm currently laided off and got a pretty good severance check. I've decided to use $2000.oo of that settlement money to start my wholesale business.

My question is, out of my 8hrs in the day to build my business, how should I allocate my time? Any strategies suggestions?

(f.y.i ......I've already started a thread on what to do with the 2k...just wondering on using time wisely and correctly, so im not wasting time on pointless things as a newb)

Thanks
Kenneth Lee

Will Barnard · Answer

My strategy is REO, as such, I am not sure if I should provide advice on a strategy I am less familiar with. Be that as it may, to be a good and profitable wholesaler, you need to have a solid understaning of your current local market conditions, how to estimate repair costs, and how to build yoru buyer's list. If I were you, I would spend time in teh filed driving neighborhoods getting a "feel" of your market. I would be going into homes for sale and practice estimating repairs. Take a contractor with you one or two times to see how they estimate repairs or another experienced rehab investor. Then spend time building yoru buyers list - which is of high importance to yoru success.

Champak Shah · Answer

Seems like you have pretty much decided what to do and here you have some good comments --there are other artciles --forums about Wholesaling --here in BP. Yes- some one here may have negative comments about me-not having experience --I am just getting back and decided to do Whoelsaling ---finding properties is easy then selling --flipping. So first priority is to Build Buyer's List .. I spend more than 8 hours -- on laptop -- I am retired and will like to be atcive --working on two other businesses same time -- Just from Free Webinars and this and other Group Forums --I have made notes and printed over 300 pages-- Now here is my step by step -- Plan ( I may write an eBook some day --not sure ) 1. First Form an LLC --- 2. Prepare and understand --Contracts- Purcahse, shor slae, Notice of Option etc - 3. Finanicng --Line up Transactional and Hard Money - understand terms and costs -- 4. Buyer's List --Find Investors / Rehabbers interested in my area --understand their requirements and expected profit and price range 5 Find --at least Three RE attorneys --for closing --who understands Investors , double closing etc 6 Find and interview at least Three or Four REO listing agents --who may be willing to work with me--use them as my buyer's agent --offer them full commission - 7 Determine Farming Area -- check out for sale and for rent -- evelauate comps and actual sold -in that area - 8 Understand rental demand and rental rates in area --find several rental maangement companies- 9 Detremine Profit Formula -- check Justin's Blog about Wholesaling and my comments --Jason also has some good comments -- Determine your niche price range and minimum profit required. 10.Start checking houses --REOs, FSBOs, MLS etc -- OR you can sign up for $20 to $50 per month --to buy Motivated Seller's Leads-- 11 Evaluate and Start making offers -- 10 per week -- $2000 may not enough --may need to spend $5000 to $10,000 to get lot of leads flowing and get going -- get website , flyers, direct mail postcards , etc -- One other comment-even though -father is a contractor- need to get at least two other contractors for estimate --as matter of second opinion --for at least first two or three properties-- May want to consider renting and holding few homes --since your father is contractor--may save lot on repairs --and pay only for materials --offer equity or partnership for his labor cost -- once fixed up and rented out --refinance and get cash out -- Check other topic we had few days ago --about the Key Words-to find Motivated Sellers or good deals --in MLS Good Luck --keep us posted . P. S. --Just noticed --Edward has some good comments - he posted while I was typing mine. He is close to you and you can network with him.

Luis Leon · Answer

Read: THE SEVEN HABITS OF HIGHLY EFFECTIVE PEOPLE. By: Stephen R. Covey

Kenneth Lee · Answer

Champak, I see an ebook in your very near future....lol, thanks. Edward, no my phone hasnt started ringing YET. I'm still in my research phase, I'm trying to get all the sound advice i can (from guys like yourself) before I dive in head, unaware of how deep it is. You are soo right, once I do get all my ducks in a row, I assume there WONT BE ENOUGH time in the day to do all my task. NIcE!! Thanks Edward, Thanks Champak. Sound advice guys.......i really appreciate it!!! Thanks again

Champak Shah · Answer

One suggetsion about getting motivated sellers -- go to Craigs list or FSBO websites and check homes --in your farming area --no more than two or three zipcodes-- pick hosues -- A) Listed for more than 90 days -- I have seen some are listed for 176 and 277 days -- B ) Out of State phone numbers-- Seller may haev moved already and hosue is vacant --

Jerry Puckett · Answer

Hi Kenneth, I take it that your phone hasn't started ringing yet? Because once it does, there will be no end to what you have to do. After screening calls, there is property research to do on the properties called about. After visiting the home, you have an offer to construct (if you've done your due diligence already, you can make your offer on the spot). I'm sure that you know these things already, but my point is that if you're not talking with sellers and buyers yet, do you have all your systems in place to take action once you do? Do you have contracts ready to go? A system for tracking your calls and marketing? Title company lined up? Do you have multiple exit strategies worked out to convert the maximum number of leads into deals? Have you set your goals and written them down? I spend the majority of my day running down leads. But when there aren't any, I work on all of my systems, and I market myself on line. Your phone will ring.....if you're a one man show, do you have all of your ducks in a row? If nothing else, continually educate yourself. You've asked a bunch of great questions, keep at it.

Kenneth Lee · Answer

(back to topic) I'm a newb wholesaler, i'm currently laided off and got a pretty good severance check. I've decided to use $2000.oo of that settlement money to start my wholesale business. I plan on acquiring properties from motivated sellers by direct mail marketing and bandit signs. My question is, out of my 8hrs in the day to build my business, how should I allocate my time? Any strategies suggestions? (f.y.i ......I've already started a thread on what to do with the 2k...just wondering on using time wisely and correctly, so im not wasting time on pointless things as a newb) Thanks Kenneth Lee

Steve Babiak · Answer

Consolidation of the finest threads on buyers lists - just read: http://www.biggerpockets.com/forums/93/topics/54108-buyer-s-list-how-to-

Ron Paisley · Answer

I have read multiple threads concerning building a Buyerâ€™s List. What is the best way to find active buyerâ€™s who are pursuing multi deals?It has been my experience so far that quite a few pepole who advertise online are not active or real buyers.Can location be a factor?So for anyone who has created a solid Buyerâ€™s List what has worked best for you?

Kenneth Lee · Answer

Thanks a lot Will. I actually do that for fun(drive around different areas of houston, checking home prices, going into open houses, stand at an open auction etc. etc) I have a really good idea of ARV, and cost of repairs (father is a contractor). I even have somewhat of an idea of what i should be doing with my day......its just not 8hrs of work. I would like to be as productive as possible, so i dont want to waste time in my day being NONPRODUCTIVE. Again, thanks Will.