Is This Even Possible...?

Question

To actually become a wholesaler/RE investor not having any money (because we are consistently in the hole every month until our car gets paid off at the end of the year), being a SAHM (I love being at home with our youngest two but I make no money),  and marginal credit (I haven't really checked recently and I haven't  used or had a credit card in years)? Be brutal, I can take it. Thanks!

Matt H · Answer

That's a great way to get started when you have no money if you ask me. I'd probably consider the idea if I was just starting out. The other way is to become a bird dog. You find wealthy clients and companies who buy real estate. Then you find them deals. If they buy you have an agreement in place that they will pay you a finders fee.

Michael Suess · Answer

If I could throw in my $0.00000002 worth in...

Wholesaling is good opportunity to make small amounts of cash, since all you are doing is what Charles mentions. Find, Control and Assign.  The only costs are finding them and finding rehabbers (but that is minimal too.)

Now as others have mentioned, if the costs of finding (which could be as little as walking around the neighborhood and as great as a full-blown ad campaign) takes away from your necessities, then you can not afford it.  What I suggest is that you create a budget, and see if there are areas that you could reduce your expenses (I suggest this to everyone as well) maybe you will find that you have some breathing room.

I don't agree with getting a RE license, unless you want to be a RE agent, which is your decision, but the only thing that would push me over to being an agent is the use of the MLS... Though during these times, there are so many deals out there, that the MLS holds no interest to me.

If there is a will there is a way, I always say, so if this is a passion for you, you will find a way... If this is just a way to earn a few bucks, you might find it difficult to get motivated for the long periods of time... As someone else already mentioned about real estate... IT IS HARD WORK, it is not a GRQ (Get Rich Quick) scheme; too bad all the late night infomercials make it sound like you can be independantly wealthy in a day or two of getting their program, but I suppose that sells their products.

Hope this helps... In short, create a budget, you might be surprized to what you might find out!

Michael Suess
The REI Training Warehouse, LLC

Mike Suchowierski · Answer

It is possible. Great deals are out there every day to be had. One thing, too often people focus too much on the home itself. Someone in your position (wholesaler) should focus your time on the buyer of your deal. Too often when people just get started this is overlooked. A few words I live by, itâ€™s not a good deal unless everyone at the table is making money. If you have good strong relationships with your buyers; everything else falls in to place! YOU CAN DO IT!

Leesa Cramer · Answer

Just wanted to thank everyone for their responses.

Harrison- thanks for the vote of confidence!

Dan- very motivating thoughts, thanks very much!

"One step you should take is to get a copy of Dave Ramseyâ€™s The Total Money Makeover and learn how to handle money."
Richard- I have his book. Hubby and I have an income problem not a spending problem:). So he is trying to find a 2nd job. We had credit problems in the past and haven't had or used a credit card since 2001.

One thing I do know is that I need to be more consistent with marketing.
Thanks again, guys!

Michael Rossi · Answer

That's a great idea and the perfect way for a stay at home mom to get started in real estate.

Mike

Jeff Tumbarello · Answer

the number one rule to investing,

Do not invest the grocery money

I think you should get an RE License.

Michael Rossi · Answer

In a word - NO!  On late night tv, anyone can become rich with real estate and spend their days sitting on a yacht sipping tall umbrella-covered drinks.  In the real world, that almost never happens.  In the real world, you need excellent credit, some money, a lot of persistence, and a LOT OF HARD WORK!

Several of the members gave you good advice.  Cut down on your expenses, pay your bills off, save some money and then start investing.  In the mean time, you should educate yourself so that you don't lose your money when you do start.  Fortunately, you've come to the right place.  All the information you need is here at BiggerPockets for free, if you're willing to do the hard work of studying it.  You'll notice that you didn't get a lot of rah, rah, sis boom bah cheerleading as an answer to your question.  That's because you have real live real estate investors here that KNOW the reality of the business.  That's what's different about this site - you'll get honest answers to your questions.

Good Luck,

Mike

Just Don · Answer

I admire the stay home mom,,,I really do.  But can one really afford to do that??  My take is at least find a part time job you can handle,,,for now,,,get right with the world(you said'we are in the hole').  While your husband is home for child care. As you get at LEAST even, then look harder at REI.

You CAN be looking in the mean time too,,,but even minor consequential expenses dont work for you NOW!!

Richard Warren · Answer

One step you should take is to get a copy of Dave Ramseyâ€™s The Total Money Makeover and learn how to handle money.  You can also find a group here by that name: http://www.biggerpockets.com/groups/153

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