All Forum Posts by: Omari Bookal

My advice is to learn as much as you can through book, podcasts, blog posts, research and fellow wholesalers in your area. Information and some start-up capital is key to get the momentum going. I've been doing it for a month and a half now and have yet to get a deal but I read that if you want to actually make money in wholesaling give it a year before you make a decision on whether or nor to keep doing it or cut your losses and do something else. Also setup a LLC (or S corp) so you can save some money during tax time.

I was bitten by the REI bug back in November of 2016 when I was 25 an between then and now I managed to purchase my own owner occupied residence (which i also rent out) and quit my full time job to start wholesaling real estate in my local market full time. I realized this tool out of all the ones you mentioned before was that one that fit my particular situation the best. Low barrier to entry (just need to pay for marketing material) and I don't need to purchase any properties in this position. However If I had more money at my disposal I would have done a fix and flip or bought another rental but none of those tools "fit" my situation and this was something I thought I would be the best at. Took me about 7 months to decide that I actually wanted to use this tool, so take your time and choose wisely your tool wisely.

Sounds like it would get tricky during closing when the checks are being cut. 

There is a VERY LONGand detailed section about wholesaling in Brandon Turner's book on Low and No money Down Real Estate investing. That is what I mainly used as a guide to wholesaling along with other online guides when i needed more specific details about certain topics like marketing strategies and direct mail.  Than Merrill has some really good courses so his Wholesaling Bible is probably really good too. 

I believe that with any industry there are sleazy individuals who will lie, cheat and steal to make a bigger buck but as we all know that is not a sustainable long term strategy. Just like with any business one's reputation for conducting business with fairness, honesty intellect and integrity will be the key to being successful in the ling run. However most other businesses require either licensing, schooling, equipment, key skills etc to get started and keep going. 

You can make quick dirty money wholesaling properties while screwing people over in the process and its a tremendous shame when someone does this; but this is the same in all aspects of life.... A mechanic can fake having credentials and insurance then grossly overcharge you for having for crappy work which you wont know about until things start falling apart. An attorney can do the same with drafting flimsy business contracts which wont be apparent until they fail in court. A "health specialists" can claim incredible weight loss and energy if you buy and take their supplements for years but then they just turn out to be sugar pills or something else when they get exposed. There are WOLVES everywhere.

With not needing any license, not much education, limited to no oversight, insurance ,accountability  or startup capital wholesalers can cause some SERIOUS damage if they don't do things ethically and responsibly. At the same time I believer is also the responsibility of the seller and investor to take everything the wholesaler says with a grain of salt and do their own research on the persons reputation, transaction history and maybe ask for references. Make it difficult for them to execute bad work. 

CONGRATS ON STICKING TO IT!! 

I know how hard it can be to stay motivated to keep an interest in real estate especially when you're in a slow growing city and do not have much funds, I applaud you for your tenacity and consistency.  Lexington has deals but you will struggle to find them like you said, Especially a multifamily property. 

With the Toyota plant committing $1.3 bill investment to the Georgetown plant it will raise the economic tides keeping that 1.8% population growth steady for many years to come and maybe even increase it. More businesses will arrive, more jobs for UK grads (keeping them in state), more people relocating from out of state, more franchises etc, etc so its a good time to get into the market with the potential expected growth (but nothing is guaranteed). 

Why don't you try and work both markets at the same time? Procure a buy and hold here in Lexington and flip a house (or more) in WV if you're in both states anyways? short term inventing in the cheaper state and long term investing in the growing one. What do you think @Todd Dexheimer? 

Amanda, the housing market in Central KY is quite hot right now (as you already know) so it is going to be difficult to find good mathematically feasible deals from searching the listing sites and getting MLS links.This is where your networking and creativity skills will have to shine to get the property you want in the area. It has been like this for the past year and inventory is getting lower and lower. I heard a rumor that studio style cardboard-box rental may be in pretty soon...

Having a property an hour away is not a bad deal if it cash-flows but does it still cash-flow with you hiring a property manager who can take care of the immediate issues, IF you're not willing to drivie 50 -60 min to address any/ all tenants issue.s. For some people it's may worth the drive to save the $$$ for others not so much... Especially if you get a call while wrapped in comfy sheets haha

I would say focus in your local niche and really do come creative searching and investing to get that property  you truly want in your portfolio. 

Good Luck in your searches and like @Joe Marcum said, join the REIA group, there is nothing but great helpful people on there!

@James Wilcox I would like to have had more myself which is why I gave myself a time line of two months to get a deal before getting back into the work force to I can keep living. And yes we did meet at the REIA meetup several months ago, I didn't recognize you with your glasses haha.

@James Wilcox There were other factors in the job that I did not disclose because I felt no need to make a lengthy introduction. Basically job was just too much, not just the hours but just in general. To answer some your questions, I do have money set aside for paying my everyday bills, around 5 months worth. I have rooms rented out in my home to offset the mortgage payment (not cash flowing since owner occupied) plus another $3k dedicated specifically to marketing and $10k in emergency funds. Purchasing rental properties is not a part of this phase of my long term strategy, that's later on down the road. My back-up plan is my engineering degree and many years in industry to get back into the rat race if it all fails but I am willing to pay for that lesson. 

Another important factor is, I need to know what it is like to be a full time businessman with ME being the sole reason for success OR failure, not anything or anyone else. Before I always blamed it on not having enough time to get into REI now, I have nothing but.

I don't want to get into a lengthy response about the details of exactly what I am doing but if you would like to meet in person I'd be happy to go into a little more detail, I've got lots of time on my hands now haha.  I really do appreciate the advice Jim! You're a good man for really questioning this dramatic decision I made. 

@Nick Woodward Jim is right, come to the meetup so we can all get together and talk business! 

Thank you all for your wishes!! When I first learned about BP back in December I thoroughly enjoyed being a part of the community and getting help from others but work kept getting in the way of me being an active member. @Ryan Camenisch I agree that BP will be a great source for valuable information and inspiration and I would like very much to meet up one day to discuss REI in Lex if you have them time. What niche of REI do you primarily focus in?

@Gilian Gegawin It was a big step and it was probably the hardest step i have even take in my life. Leaving a cushy comfortable job with benefits, company car, nice paycheck, health insurance etc was a hard thing to do. Now its time to be more active on BP and make this a lucrative adventure!