All Forum Posts by: Miguel Hernandez

Miguel Hernandez, I may be able to help you. I run several local real estate groups in Wisconsin. 

Are you doing BRRRR strategy in Milwaukee? How have you been financing the deals you already own?

Quote from @Miguel Hernandez:

Hello BP members. I am from Los Angeles, but I virtually fix and hold properties in Wisconsin. It’s been pretty slow for me so I sat down to go over some things I needed to scale my business to the next level. I realized I need more funds, a bigger network, and more leads coming in. Since these are my 3 main struggles, I had an idea to Wholesale properties in my current markets in Wisconsin. However I have a few questions and I’m hoping someone can help me out. 

With the current market rates and the fear some investors have, is there any advice an experienced Wholesaler can give? I know wholesalers rely directly on buyers, so how were you able to find buyers that aren't afraid of the current market? I havnt started but I have a fear that buyers still continuing  to purchase properties are very minimal. How can a new Wholesaler like myself stand out?

Also I work a regular Blue Collard job that takes about 40-60 hours of my time per week. So my strategy is to text blast, that way I could reach more people in distress to help with their situation. Hopefully God points me in the right direction to help those in need. Any advice on text blasting is much appreciated, thank you so much for your time. 

My first piece of advice is only text blast to people you know who have opted in to receive messages from you.  There are some new laws in place with some astronomical fines if you get caught. 

How to find buyers who aren't afraid of the current market?  This is an interesting question.  I've been on this forum for quite a few years and every year that question is asked & while it is being asked people are doing deals.  So the answer to the question is never stop marketing. Marketing to find properties, marketing to find buyers and raising money. 

You used this language in your post "I have a fear"  Remove those thoughts of fear. Since you work a regular 40 to 60 hour job I recommend you spend some time researching what systems you should invest in to run your business so it's not 100% dependent on you.  

I am concerned about your financial limits combined with ethical wholesaler.  An ethical wholesaler closes even if they have not yet secured a buyer.  

There are laws that you need to be sure you have a good understanding about what you can and cannot do without an RE license.  Make sure you know and follow these laws.

There are many unethical wholesalers and because of that wholesalers have a poor reputation.  Communicate honestly and close when you state you will.  Do not be an unethical wholesaler.  

Good luck

Quote from @Miguel Hernandez:

Hi BP members. Currently I work a Blue Collard job that I can’t leave just yet. I currently fix and hold properties in Wisconsin, but I want to start real estate here in California. I currently live in the OC. I fell in love with the world of Real Estate and I had an idea of becoming a Real Estate agent here in my hometown. However I have a few questions and I’m wondering can someone help me. Is being a “Part Time Real Estate Agent” a thing? Also in what ways will becoming an Agent negatively affect me if I want to invest here in California in the future? Thank you.

 The short answer is yes! You can get your license and do business as an agent part time. I am a Realtor in the OC and this is how I started. I am full time now and make a decent living. I think you need to be crystal clear about what you are hoping to gain by becoming a real estate professional. Do you see yourself working with clients and helping them buy or sell? Do you like the idea of the big commissions? This can be a thankless job. Are you ready for those rough moments in the business as well? Being part time will not prevent you from dealing with the low moments in the business. But you can definitely learn a lot and build up a network of contacts that can help you with bigger goals. 

Hopefully that helps!

Being a "part time real estate agent" is definitely a thing and doable but you won't make as much money as you could potentially make and you have to be okay with that. 

In my area, all you need to do is one deal a year to break even and some for the cost of maintaining a license and pay your MLS dues.

Most "part time agents" start with family and friends and have the entitlement mindset that their family and friends owe them a deal. In reality, nobody owes anybody anything. If the "part time agent" is not dedicated into improving the skills involved as a real estate agent, the agent can easily cost their clients thousands if not tens of thousands of dollars in a transaction. Some real estate transactions are clean cut and they feel like walking in a park picking up a big fat check while other transactions are full of landmines require the knowledge and experience to navigate through the process. Unfortunately the agents don't get to pick and choose the scenarios. 

As far as the benefits towards real estate investing, definitely yes if you only plan on investing in the local area. The cost of the benefits would be keeping your license active. If you invest outside of your local area, you still may earn some cash with referral fees. 

Here are the immediate benefits (keep in mind your broker has to allow you to do these):

1. earning the buyer agent's commission when buying properties. 

2. gain access and view properties without needing a real estate agent.

3. Being able to set the commission if you need to sell your own properties without negotiating with an agent. 

4. have market data at your finger tips that you can easily pulled from the MLS. Most of the data is also available on popular real estate websites.

5. Being able to help others and most importantly, GET PAID. Otherwise, you are legally limited to help others you want to help but doing it for free. 

I'm a full time real estate developer and investor in my local market and I found having my license valuable. Since I got my license and working as an agent, I have learned to appreciate all the work behind the scene on a transaction that I wouldn't know otherwise. I am always eager to learn, get trained on, and attend real estate market meetings offered by my firm and I'm genuinely interest in helping others in any shape of form that I can. This year is my third year and I grossed close to 6-figure in commission YTD from being a seudo "part time agent." It's nice money as a side hustle for sure. I see top producer in our market make 300-500k a year being a full time agent doing nothing but prospecting and do deals as much as possible. That's not something I want to do or become. I'm happy with my current state, being a full time developer/investor and using my license/knowledge/experience to help me and others. 

Hey Miguel, 

I'm an out-of-state investor with two properties in Milwaukee myself. I'm in the same position you find yourself in. Relatively slow, and looking to scale. I've been considering sending mailers out to prospective sellers in the Milwaukee area. As a buyer, I see a lot of volume on certain Facebook Market groups and look for properties there consistently, you could find sellers there if you aren't already involved in those groups.