All Forum Posts by: Patrick Philip

Like others have mentioned wholesaling is more of a business than investing. There are some big players in the field like Sean Terry who have a whole team set up and even an office building. They send out HUGE mailings and gross $100k+ a month.

So yes, if scaled property, wholesaling can be a great "machine" that will give you passive income. I'm a fan of having multiple income streams so I would do both wholesaling and buy-and-hold at the very least. 

In this market, it's very hard to find deals on the MLS. Not impossible.

I would focus on building relationships with agents in your farm area and get them to source deals for you if possible. Criteria for me is something that's either a ground-up build or something I can add sqft and/or units to. A simple cosmetic flip won't pencil most of the time in Los Angeles. So an example would be a SFR built on a R2-R4 lot where we can add units.

 Good question, and one that doesn't have a simple answer. Same way I'm trying to do it brother. Hard work, patience, and increase your passive income piece by piece while trying to do larger flips/wholesales at the same time.

 Fine, stick with what you know and are willing to work at. I went B&H long term MFU as the vacancies were few & far between allowing long periods of "just collecting rents".  I could turnover a vacancy in 30-45 days and go back to sleep.

I got into the MFU via a SFR 1031 and had to scramble to find it and to determine what occupancy would be the break even point (net zero profits). The market is more difficult today, but it's doable. The trick is to be able to make the down payment to get the LTV the lender requires. When I sold last spring, my buyer understood how and he how has the cash flow. You just can't expect ROI with $1.95 down

@Patrick Philip, I agree with @Nick C., @David Benton, and @Mark Allen. Wholesaling is not a means to an end for investors. It can be a great way to get started in the industry and build up enough experience and capital in order to make investments, but it all depends on your goals. I don't think you're going to be interested in the "wholesaling grind" after putting in many years in the game. We all want to be able to have the ability to check out sooner than later, but it takes patience and hard work. There is no quick way to reach true wealth. I think you may be thinking too short term here. Your numbers seem off, but even if they aren't, at $300/month, if you can build up a portfolio of 100 units, that's $30,000 a month of money coming in that you don't work for. All passive. 

Focus on the short term goals in order to get closer to the long term goals my friend.

Read the post by Mark Allen again. The 2% acquisition fee happens all the time in deals like this. That is 2% of $10M which is $200,000 upon closing of escrow.

If you keep a rental property it's the gift that keeps on giving. Wholesaling is a one time fee, and you're only making as much as your next deal. As the market tightens up and there's less and less deals out there, it's going to be difficult to sustain the wholesale model of getting more deals to keep the bills paid. But a rental will keep cranking out rents regardless of the market.

But it's a personal choice, do what you enjoy.

Before, but P+I was only $1200 and the balanced declined on the ARM to the point it was laughable - - $485. The MFU can easily become a cash-cow.

Your assumptions on rents is questionable, especially discounting MFUs where NOI/mo can be very nice (my 6plex returned 5400/mo).