Business Planning Help
Are there any members here who launched a wholesaling business while working a full time job + wife and kids? If so, what were some struggles you encountered while building the business, and how did you overcome them?
Quote from @Josh Brown:
Are there any members here who launched a wholesaling business while working a full time job + wife and kids? If so, what were some struggles you encountered while building the business, and how did you overcome them?
I think a big part of it is going to be do you have enough time in a day. Personally, I had enough savings to go all in and spend everyday like it was my job and it still it took a lot of time learning, researching, and building my network of people. If you work at night and are able to dedicate your day to networking I think that will be easier. You're going to be competing against people who do this full time not just 9 - 5 but live this. I won't be easy but if you can structure your life and are prepared then go for it.
I think with everything that you have going on, it wouldn't be fair to yourself to expect enormous success right away. With the only limited time that you can work on the business, you can only produce so much. I say this not to discourage you, but am I actually doing the opposite. Stick with it and success will come.
Quote from @Ryan Rutoskey:Very good point. I had an insulation business, but found real estate and didn’t have the bandwidth or passion for insulation anymore. I wanted to go all in on investing, but knew I needed steady income-as I have a wife and kids-so I got a job at a property management company. I wanted to be in the rooms I need to be in for my business to succeed. Couldn’t have been a better decision. I now have instant access to the cash buyers we already manage properties for, and a network of agents. I also brought on my brother as a partner for my wholesaling business (I know what you’ll say…but we get along, and he’s as passionate about real estate as I am, and that’s hard to find). He’s going to do the acquisitions, as his work schedule permits it, and I’ll handle dispositions.
Quote from @Josh Brown:
Are there any members here who launched a wholesaling business while working a full time job + wife and kids? If so, what were some struggles you encountered while building the business, and how did you overcome them?
I think a big part of it is going to be do you have enough time in a day. Personally, I had enough savings to go all in and spend everyday like it was my job and it still it took a lot of time learning, researching, and building my network of people. If you work at night and are able to dedicate your day to networking I think that will be easier. You're going to be competing against people who do this full time not just 9 - 5 but live this. I won't be easy but if you can structure your life and are prepared then go for it.
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#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
@Josh Brown besides balance, make sure you approach setting up your business correctly!
Everyone knows someone and most of us know at least 100 people
So, start out by listing everyone you know on an Excel spreadsheet.
Why Excel? Because later, you can easily use it as your mailing list! Create columns for Name, Street Address, City, State, Zip and then contact info: Last Contact, Relationship, Status, Email & Phone.
Now, make it a goal to call at least 5-10 of these people EVERY day and ask a MAX OF THREE off the list below of who they know that:
- Just inherited a home
- Had a loved one pass away
- Is behind on their mortgage or tax payments
- Has a relative that can’t take care of their house anymore
- Has a house they’re having trouble selling
- Is facing bankruptcy
- Knows a probate attorney
- Knows a bankruptcy attorney
- etc
Why only three of the list per contact? Because on average, we can only remember three things at a time. If you try to go over the whole list, you’ll lose the attention of an average person and they won’t remember anything.
It should only take you about a month to contact everyone on your list and then the tough part – you start all over again.
Why the repetition? Because it takes repetition for people to remember things and you have to be top-of-mind when they encounter a potential client for you!
Have you ever been to McDonalds? Of course you have! So, why is McDonalds still spending billions on advertising?
One more tip – people remember stories that trigger their emotions. So, tell a story of how you (or a fellow wholesaler) helped a seller out with their challenge(s). Change your story each month as different stories will resonate with different people AND use each story to emphasize one of your “who do you know…” questions.
As you start closing deals, you will need to reinvest your profits into mailing lists and other scalable activities to grow your business.
One last thing – we recommended you create a Status column on your spreadsheet, now we’ll explain why. If you find someone that seems to know a lot of people needing your services, wouldn’t it make sense to focus more resources on them? Conversely, you will run into people on your list that just seem to be a waste of time, so you’ll want to avoid them. So, create status codes for both of these and a few in-between codes to help you work smarter, not harder.
Congratulation Josh! Like we all know, wholesaling is time consuming...isn't starting any business though? Just remember your time is $$$ and find the best processes for you. Once you find the best processes and surround yourself with the right people it's rinse and repeat!! Continue to network, never quit networking... There are great resources out there!