Thought about wholesaling? What’s it really like?
What do you do? How does it work?
How much time does it really take? How much can you make?
Here’s how a typical wholesaler spends his month…
Marketing is always the priority to keep the business flourishing.
The first task is to generate motivated seller leads. The best source is direct mail to targeted lists. So we’ll download our list, grab one of our proven direct mal pieces and send them both to the mail house to be merged, printed, and mailed throughout the month.
Then we’ll implement our other marketing which generally includes some sort of geographic marketing…in other words mass marketing within a targeted area.
Next, it’s building our buyers list. It is never large enough. The goal is to keep it growing. So we’ll do direct mail to a cash buyers list; attend REIA meetings in our area to network with buyers; we’ll run internet ads, etc to grow the list.
Within a few days the calls start coming into our answering service from the sellers who forwards the messages to us via email.
Our next job is to pre-qualify all of these sellers over the phone. I want only the very best leads so we can sell them quickly and make substantial profit on each.
The truth is – most of them will be garbage. In other words they are sellers who want to sell at market price; they owe too much; they are tire kickers; the house is in the wrong area; and a host of other reasons.
Who cares? We just want to process through them in 5-10 minutes on the phone to find the real gem.
This may be the hardest part of wholesaling for many – all of the discarded leads. It takes about 20-25 leads for every deal you’ll do per month. That’s a lot of disappointment. Some people can’t handle it. On the other hand…
If you approach it as a numbers game and all you have to do is get through the numbers, you’ll realize that for just a few hours a month on the phone to find a deal that will make you a minimum of $10,000! All of a sudden, it’s a little easier to handle.
We want to do two deals a month to make at least $20,000 a month, so we’ll pre-qualify 40-50 sellers at about 10 minutes each that is 8 hours a month. Can you handle it?
Once we find a good house, we’ll schedule time to go out and see it and get it under contract. If you’ve done a good job pre-qualifying the calls, you should close 80% of the houses you go to see. But even if it takes you two houses visits per deal, you’re talking about 4 house visits a month. Let’s say that each one takes 3 hours with travel time to and from, we’re still only spending 12 hours a month to make $20,000.
Next we’ll advertise the deal to our list via the internet. Within a few days we’ll have several offers. We’ll talk to each buyer and negotiate the best deal spending a total of maybe 2 hours for each deal.
Finally, we set up and attend the closings. That is two closings a month at 3 hours each (including travel) or 6 hours.
You don’t technically need to be there. I go because I like to see the deal close. I get to meet my buyer in person; I build relationships; I get testimonials from the seller; and best of all I get a CHECK!
Add all of that up and we’re talking about 30 hours for the month! Let’s say that I forgot some of the little day-to-day tasks that need to get done, and let’s say it takes you a little longer.
Let’s double the time and make it 60 hours a month or 15 hours a week to earn $20,000. That’s not too shabby for a part time job, right?
We also never purchased the properties or did any rehab. We had no mortgage and no risk.
We don’t create all of this in month one, but this can certainly be your reality…your life… over the next several months.
I help investors just like you create this reality.
The wholesale life is freedom! Become a wholesaler.
Expect abundance,
Lou Castillo
P.S. My mentoring is not free, but nothing of value ever is. Here’s what I will do for you if you are a go-getter. Put up part of the fee up front and I’ll wait on the rest until you’re making money. In fact, I won’t collect another dime until you’ve made back all of the money you paid upfront.
