All Forum Posts by: Jonathan Tang

if it was me and it was really never my goal to be a big time landlord.. but if it was.. I would go work at that... 

commercial brokerages that sell those properties work from the ground up... 

wholesaling as its taught in my mind is highly regional as i stated. just does not work in a lot of markets i don't care what anyone says.. there is not enough distressed inventory  Hoarder homes etc etc to get consistent deal flow.. and it cost to much and takes to much time to create your leads.. 

I was basically a wholesaler in my day in the Timber business.. we sold logs to mills.. we middlemanned it.. we owned no equipment we sub contracted all the logging.. and in some contracts we did % splits with mill and landowner putting up none of our own money.

then the market got so hot that the Mills would front the money for the logs interest free. ( of course they would not do this for just anybody my partner was and is a known big time logger)... then my bank gave us a big 7 figure line of credit to buy timber.

but what I did was just what you wholesalers do .. I went out and crated a custom data base of every single landowner with 10 acres or more of visible timber ( via aerial photography)  from the CA Oregon border to just south of Tacoma WA and from the top of the coast range to the top of the cascades.. literally 20,000 leads.... from that data base we had the reverse directory..  and we would telemarket our data base in an organized fashion.. create leads then we would go do a timber eval ( that's you meeting with a home owner) and then present our offer.. our competition was local gypo loggers and mills.. who were not this sophisticated.. and No one taught course how to do this.. I created it.. :)   but that all cost 6 figures to create.. but once created our average contract made a little less than 50k net profit per deal..   But there was no guru training thousands upon thousands of newbies who had a dream but did not know how to do it to be our competition.. and we only sent letters if we could not get them on the phone..

so to me wholesaling is a version of this.. and most wholesale deals i see come through my office and i see them each and every week pay to wholesaler is 2 to 5k.. but some times i see them bigger.. so lot of work for small fee's in my mind.. and its most of the time different random wholesalers.. so the pie is being cut very very thin.

Now real estate sales as a broker is the same TON of competition and you need one year of living expenses in the bank becasue it will take you that long to get money flowing at least. 

then it becomes the person I have owned 3 RE brokerages in my day..  and so had probably 300 plus agents work for me.. and out of that 10 to 15 made really good to big money .. by that I mean 250k to 1 million a year.. next 20 or so did 100k to 150k.. the rest were less and plenty just enough to not have to get another job. 

so it becomes how good are you at your craft.. desire is all well and good we all dream big.. I want a 50 million dollar G 5  for instance.. 

but had to settle for a little Cirrus sr 22  .

so find your strengths not every one is cut out to be a uber salesmen.. and wholesaling is about as tough as it comes.. its a combination of all those things.. commercial real estate is less on sales and more on technical knowledge and stick to it ness.  but that's were the big money is.. and those are the guys who sell it.. so if that's what you want why waste all this time trying to hawk beat up SFRs and talk to people that are down and out.. when your selling MF your talking with millionaires and multi millionaires seems a better circle to be running in.

Should be 5 deeds right? The question should be about the loan. You need a portfolio or multi property loan.  Not uncommon at all. Only problem downstream is breaking one out of the loan to sell. My last deal like this was for four properties. I didn't argue about the first two  but asked appropriate discounts on the others. Give a little get a little. There are probably not many buyers that would come along and cash him out. The only other way is to cherry pick over time. Start with the best one at a fair deal and work your way through the lot over a couple of years. Don't buy the worst one.