All Forum Posts by: Briannan Burns

I don't think wholesaling is dying out, but I think it depends on the deal in question. A lot of those who started out in wholesaling just have more capital to leverage in other investment tactics, where they may not have had in the beginning- so when they find a deal that may be more profitable to fix & flip, or rent out, they're more capable of taking this on, themselves, rather than outsourcing an end buyer.

I also feel like Creative Finance is gaining more traction, so more wholesalers are able to use this leverage to get more deals, rather than letting leads die, because they're not able to meet a seller's price.

If wholesaling WERE to die out to landlord & flipping, I'd say it's purely due to outreach. Wholesaling takes a lot more effort to reach out to leads, phone calls, follow-ups, & the works- whereas with the other, deals sometimes just come to you, or you can find deals on-market. A lot of people, when getting into wholesaling, just don't really realize how much time & effort needs to go into building the business up.. mainly because of how it's been glamorized on social media by all these "gurus" who make it look easy. Unless you have a TEAM behind you, able to make cold calls, do lead follow-up, buyer outreach, & everything else.. wholesaling takes a LOT of commitment, but is totally worth it.

Transparency is always best & can save a LOT of issues from arising, later on in the deal. Word it in a way that it doesn't sound "scammy" or like you're not confident in your abilities, as this can turn sellers way off.

Hi, Matt

Is this opportunity open to Real Estate Assistants, as well? I'm currently in the process of getting my license, but I also have my own business as a VA for Real Estate Professionals. Let me know if you have any questions!

@Tony Marcelle I completely understand! I'm in the same boat, as well. When I first started, I had the mindset that I would use all my profits from wholesale fees to pay off my debts, which isn't necessarily a terrible idea; however, I started thinking, if I could save at least half of those profits to reinvest in real estate, I have the opportunity to not only pay off my debts, but also have money to save up for more cash flow. The way I think of it is, if I hadn't started wholesaling, I probably wouldn't have had this money anyways, or it would've taken me years to save up enough to pay off all my debt- so, paying off larger chunks at a time is sufficient, for me. Again, everyone's situation is different, & everything in life is about finding out what works best for you!

Also, I see you're from AL, as well. We're going to make it, no doubt!

@Tony Marcelle I would say that the #1 rule of business is to recycle your money back into it at least 50% as standard. (This is completely my personal opinion)

Find what percentage works best for you & your business model, but in order to grow your business, remember that you need to invest- and continue reinvesting, in it.

For instance, if you make a wholesale profit of $10,000, I would suggest splitting it at least $5,000 to reinvest & $5,000 for personal. However, if you're using your wholesaling profits to accommodate your lifestyle or help pay bills, you may need to adjust your personal amount. Or, if you're using wholesaling more-so as a means to get into REI, you may want/need to adjust your reinvestment percentages.

Decide what your overall goal is for your wholesaling career and draw your decision making from there. Good luck!

@Juan Carlos Castillo Newbie here, but local to the area. I would say 35204 zip-code is a mixture of D-F class. 

Upsides: 

• -it's close to downtown
• -a lot of up-and-coming neighborhoods surround the area and the location is close to a lot of stores & other amenities
• -the homes are relatively cheaper in this area 
• -I would say there is still a demand for rent, but there isn't as high of a demand here as there is in other locations in Birmingham, due to the neighborhood conditions

Downsides: 

• -High crime area
• -the homes are cheaper which could mean more work is needed, as most of these homes are older homes and/or have a lot of wear to them, due to location
• -rent is lower, and you probably won't be able to raise your rent prices, due to a lack of high-demand here.

So, like @John Patton stated, yes the property is cheaper, but due diligence will be your best friend. Depending on what you're looking for, it may be a great opportunity!

@Nic Cooper Absolutely! 

Long-term, I would like to get into rentals and fix & flips; however, I'm currently working on wholesaling to help with building up a savings to purchase property with.

@Nic Cooper Safe travels to Birmingham! Let me know if there is anything I can do to help out on your search. I'm relatively new to REI; but I'm eager to get started and am trying to get my feet in the water as much as possible.

@Nicole Heasley Beitenman Those are great points, thank you! I'm planning on going to my local REI meeting soon, so maybe I can build rapport with someone who is willing to help a newbie.

@Shere Clark Thank you so much! I just saw where you work with funding in Alabama, as well, so would it be okay if I contact you once I get closer to needing funding, or if I have any questions along the way?