I am extremely "burned out" with my current job that pays well but I am 62 years old and very tired of making other people rich. I want to develop a consistent RE wholesaling business to supplement my retirement. However I have found it very difficult to find the time to work on my wholesaling business while I work full time which also includes a fair amount of travel. I am impressed by many of the contributors to this forum and I am also sure my situation is not unique. I would appreciate any suggestions, actions plans, ideas on how I can effectively develop a wholesaling business while I work full time. I really, really need to quit my job, I'm on Xanax already.
I can't say I'm as old as you are or that I know how you feel but I had quit my job as an electronics engineer when I started making more at my business. At the early part of last year, things had turned very ugly down here in Florida and so I went back to work as an engineer. I have not stopped running my business though. At one point I was working both 40 hrs at the job and another 40+ for my corporation. Luckily I don't require a lot of sleep but it does take its toll. After I learned that I had to change direction with my business to meet the changes going on in the business world, I was able to get my corporation back on stable footing. Needless to say, getting paid from 2 directions can be very addictive. And I am not one of those people that hated their job. I enjoy engineering. So rather than quit either one, I've learned the fine art of outsourcing and delegating. I'm still putting in around 30 hours on my business each week but I'm working on loosening the grip little by little. Have you thought of simply hiring someone to do most of what you do so that you are virtually hands off?
Working full time and running a business can be done but it's not easy. How are you marketing your Wholesale business? IMO, you need to get the phone ringing and have motivated sellers calling you regularly. Deals will come if you can get the MOTIVATED sellers calling you. REI is a numbers game and just like any other business you need to make that phone ring, especially if you don't have time to "drive for dollars" and find houses that other people ignore.
I'm sure other people on this forum have solved that same problem and could give you tips on time management. I would buy lists and direct mail, you can start with out of state Absentee Owners or Absentee Owners that own homes at half the median sales price for your area, etc.
Another thing, and with working full time I'm sure you value your days off but you could use that time off to go out and find deals, talk with home owners and try and get a deal. The main thing I'm curious about is how much time are you currently putting into your own business and what your doing to get that phone ringing?
Lots of people on here willing to help so ask questions and stay focused, it will happen.
BTW, I think one of the most evil things is spending all or most of your free time working a job you hate.
Well do you want to quit your job or trade one job for another?
Wholesaling is a job. There is no residual income from it and you only make money when you turn a deal.
Find - Sell - Buy - Close - Close and repeat over and over and over. And I can promise you as your getting started your going to wish you had a steady paycheck. It can be done but you need to bust a$$ to get it done.
At age 62 if you want a job the wholesaling is one option but do not fool yourself your trading one job for another.
This is great advice. Wholesaling (or any other form of investing) is a JOB, just one without a boss and office politics. Personally I like the challenge but I know that a lot of the guru's try and make it seem like it's easy money and anyone can do it in their spare time. That could not be further from the truth.
Besides leaving your job, what are your goals? Be realistic with your goals and learn as much as you can. Based on your goals, you may find that wholesaling is not for you. I would recommend doing a few deals start to finish before you put in your 2 weeks notice.
I agree with the others that it is very possible to do both a 40 hour W-2 job and do a RE investing biz, but it does have it's moments and difficulties.
Bottome line, for a wholesaling biz to work and be profitable you MUST first build a buyers list and that requires time and efforts. There are several threads here on BP discussing how to build these lists. I would suggest you start there FIRST.
There is not much worse than locking and loading a great deal and having nobody to sell it to.
The task of building your buyers list can take place on weekends and after hours on the net. Dedicate a specific time frame and hours to this step and do not ever stop. There is no such thing as "done building buyers list"
The other aspect of course is locating and contracting great deals. You will need as many people as possible looking for deals for you as well as your own marketing (depending on the target properties you go after determines your marketing).
If you hate your J-O-B, you could consider yourself at a disadvantage or you can look at it another way, as an advantage to motivate you to get the he^^ out! No question wholesaling is just another job, but if it is something you enjoy, then you have replaced a job that you hate with a job that you love, plus the added freedoms that come along with being self-employed.
Good luck and keep us updated on your progress. :cool:
Edited: 06/26/2010 at 09:05AM
Will Barnard, Barnard Enterprises, Inc. E-Mail: info@barnardenterprises.com Website:http://www.barnardenterprises.com info@barnardenterprises.com
I think Scott was sharing a principle of wholesaling that many new investors overlook. Wholesaling has NO future. Wholesaling is like punching a time clock.
Yes, you do work for yourself, and, yes, you set your own hours, and, yes, you can get paid fairly well for you time, but its a J-O-B. It has NO residual factor or rather VERY little. You can get deals from your network residually or without hustling, but normally not near enough to live off of.
Wholesaling and rehabbing to retail houses both have NO future. You will NOT retire on wholesaling or rehabbing. You will need residual income to do that, and in real estate that comes from long term holds like notes or rentals.
Starting a business and working a job sucks, but not half as bad as going six months without getting paid while you start a business. Yes, you can make money quickly in wholesaling, but if you don't reinvest that money into your business you probably won't be around in six months anyway.
Nights and weekends are how you normally start a business, and that's how I'd recommend you start a real estate investment business also.
Is it hard? Does it suck? Is it going to take what little time you have already? ABSOLUTELY.
Instead of working 40-50 hours a week, you will be working 80. The question is are you willing to make that sacrifice?
And in the end is the sacrifice worth it?
In my opinion, absolutely. :cool:
Now as for Will's suggestion to build your buyer's list first, my personal preference is to actually find the deal first. Researching the right areas to focus on to find those deals is essential, but in my experience a smoking deal will bring the investors running out of the woodwork.
I appreciate everyones comments. I've made a lot of dum mistakes financally in the past 5 years and I am determined to turn that around. I got hooked into the promise of "get rich schemes" with internet home businesses, quite a few and got myself into about $15,000 in debt. I just think that if can devote more time to real estate investing ie.. wholesaling a make a deal a month ($5,000) I can pay off my credit card debt and do that consistently. I don't want to totally retire anyway so why not get proficient in wholesaling. I like to work it's just I hate the job I have.
Ryan, not sure what is exactly the correct/best way to start wholesaling, build buyers list first or find deal first. I think we both make valid points. My experience has shown that even a great deal can be lost without the buyers ready and waiting and thus I persoanlly feel that the buyers list is the priority for me (of course I am not a full time wholesaler, just my partt time experience on that).
Edited: 06/26/2010 at 09:08AM
Will Barnard, Barnard Enterprises, Inc. E-Mail: info@barnardenterprises.com Website:http://www.barnardenterprises.com info@barnardenterprises.com
Robert, in addition to paying heed of what they're telling you, make sure real estate something you really want to do.
I say this b/c I made the mistake of seeing $$$ w/ wholesaling and not realizing the frustration and heartache that accompanied it. Also, real estate has to be something you love to do to make up for the stress and frustration that you'll encounter. I realized that I don't love it and therefore have no desire to do it, there are easier ways to make money... As far as a second job goes, the posters are right, it would be just that......as far as residual income is concerned, you don't have to be limited to real estate..I myself have no desire to be a landlord. There are dividend funds and other areas of investing where nice residuals can be made.
Robert- I know of very few that earn a good living in wholesaling. I would really suggest you keep the main job for the guaranteed income. Doing real estate of any sort is like turning on a faucet. You can barely turn it on, or half way or full blast OR FIRE HOSE!! That is the way real estate is. You can put in 20 to 120 hours per week. It is up to you. You'll make better decisions and sleep better, knowing the income is coming in each week or month from the regular job. Stick with it until you've seen some progress in the real estate, and then you can make the change.
I agree with the other posts. There are other ways in real estate besides wholesaleing to make money.I'm 61.
Karen- I'm coming to Tampa this weekend to see properties. You got anything good for me to consider? Rich
Jul 21 '09, 09:27 AM
