Advice on Wholesale

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Advice on Wholesale

Brittany Chrismer
Member since 2023 · 5 posts · 1 vote

Hey everyone!

I am currently in the efforts of paying off debt and getting into rental real estate to receive the cash flow so that I can stop working a W2 job and be able to live anywhere that I want to without worrying about a new job (remote or physical.) To do the debt I am currently working 84hrs weekly. I am on track to have my liabilities all cleared by Dec-Jan, but I'm wanting to also try getting my first wholesale contract done within this timeframe so that I have a little bit of capital. The timeline is due to personal reasons and the reason for trying hard to get my first wholesale profit by then is tied into that, with the amount not even needing to be substantial as it is a big part proving to someone that I can accomplish this goal.

For the question regarding wholesale: I am hoping to receive advice in general for how I can possibly get a contract as quickly as I am needing to. I have the drive to do so, but I want to start getting information and tips for this process as soon as I can and as clearly as I can, so that way I can meet my deadline.

I've looked into it, listening to the podcast episodes about wholesale while at work, created a project proposal with data and rough calculations for personal finance and also deal scouting, and I'm researching every moment of my spare time, BUT: I'm having a hard time with everything going on in my life to formulate the information into a proper attack strategy of "do X, then Y, then Z"

Are any of you able to offer me your wisdom and insight for a basic breakdown of how I can do this? If you also have examples for me to study or scenarios for me to practice, that'd be amazing.

I come from a family of extreme generational poverty and I am trying to break free from that despite life continually handing me setback after setback, struggling with mental health, and now my relationship being on the line when it was the only thing making me happy.

The market I would be in I imagine is my area (Appleton in Northeast Wisconsin) unless remote wholesale is something that someone has good information about and feels it'd be beneficial to my specific scenario here.

Sorry for the long post or if I had over shared, but I want to make my ambitions and reasonings clear so that my extremely difficult timeline doesn't immediately make me seem like I am delusional in the amount of work it is going to be, especially while working as much as I do at my W2 job. It's a deadline that I truly have to meet and is causing a lot of momentum for me starting. It might be improbable but I don't believe it is impossible.

Thanks!

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Marcus Auerbach
Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
3y

@Brittany Chrismer - welcome to BP and good for you for taking matters in your own hand! I don't want to sugar coat it, but you need to know this. It takes a long time to build a real estate business to replace your income. For most people a 5-10 years, I was no exception. While you get there you need a strong W2 income. If you quit your job too early, you loose your ability to finance. So while you build your REI on nights and weekends, you have to also develop your W2. There is just no quick magic solution around this.

Wholesaling is one of the hardest things you can try to master, because you need build so many different skills: marketing, talking to strangers in distress, understanding comps, understanding construction issues and repair cost, rents etc. It can be done, but there is a lot to learn and master. Like you said not impossible, but improbable to replace your W2 with that any time soon. 

A much easier path is buy and hold. Start with house hacking a duplex, after a year you can buy another one. But you'll need a W2 for this.

If you are hell bent on wholesaling, here is what I would do. Start by driving for dollars. Look for tall grass, leaves, soon snow that has not been shoveled. Try to make contact with the owner and see if they are willing to sell. Learn skip tracing. If you have a lead that looks interesting, bring in an experienced local wholesaler (make a list of who they are in Appleton) and split the profit with them. Let them do all the comps, evaluation and contracts - watch and learn.

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  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    3y

    @Brittany Chrismer - welcome to BP and good for you for taking matters in your own hand! I don't want to sugar coat it, but you need to know this. It takes a long time to build a real estate business to replace your income. For most people a 5-10 years, I was no exception. While you get there you need a strong W2 income. If you quit your job too early, you loose your ability to finance. So while you build your REI on nights and weekends, you have to also develop your W2. There is just no quick magic solution around this.

    Wholesaling is one of the hardest things you can try to master, because you need build so many different skills: marketing, talking to strangers in distress, understanding comps, understanding construction issues and repair cost, rents etc. It can be done, but there is a lot to learn and master. Like you said not impossible, but improbable to replace your W2 with that any time soon. 

    A much easier path is buy and hold. Start with house hacking a duplex, after a year you can buy another one. But you'll need a W2 for this.

    If you are hell bent on wholesaling, here is what I would do. Start by driving for dollars. Look for tall grass, leaves, soon snow that has not been shoveled. Try to make contact with the owner and see if they are willing to sell. Learn skip tracing. If you have a lead that looks interesting, bring in an experienced local wholesaler (make a list of who they are in Appleton) and split the profit with them. Let them do all the comps, evaluation and contracts - watch and learn.

    3Reply
  • Dustin B.
    Rental Property Investor · Appleton, WI · Member since 2017 · 49 posts · 20 votes
    3y

    Hello from Appleton. There is a fairly large RE community in this area, a few REIA groups that have regular monthly meetups. To be honest, not as many local investors are on BP as you'd think. Best way to start out is networking and meeting others with similar goals and interests.

    1Reply
  • Brittany Chrismer
    OP
    Member since 2023 · 5 posts · 1 vote
    3y
    Quote from @Marcus Auerbach:

    @Brittany Chrismer - welcome to BP and good for you for taking matters in your own hand! I don't want to sugar coat it, but you need to know this. It takes a long time to build a real estate business to replace your income. For most people a 5-10 years, I was no exception. While you get there you need a strong W2 income. If you quit your job too early, you loose your ability to finance. So while you build your REI on nights and weekends, you have to also develop your W2. There is just no quick magic solution around this.

    Wholesaling is one of the hardest things you can try to master, because you need build so many different skills: marketing, talking to strangers in distress, understanding comps, understanding construction issues and repair cost, rents etc. It can be done, but there is a lot to learn and master. Like you said not impossible, but improbable to replace your W2 with that any time soon. 

    A much easier path is buy and hold. Start with house hacking a duplex, after a year you can buy another one. But you'll need a W2 for this.

    If you are hell bent on wholesaling, here is what I would do. Start by driving for dollars. Look for tall grass, leaves, soon snow that has not been shoveled. Try to make contact with the owner and see if they are willing to sell. Learn skip tracing. If you have a lead that looks interesting, bring in an experienced local wholesaler (make a list of who they are in Appleton) and split the profit with them. Let them do all the comps, evaluation and contracts - watch and learn.


     Thank you so much for the input on this! Thankfully I do have a lot more experience under different topics than most expect, which maybe I should have added. I will definitely have to figure out the prices that contractors charge for their work, but I also grew up on a farm and did a lot of projects and construction on that in addition to my ex-husband and I having renovated our home years ago, so the general pricing of what the materials cost is something I have some personal experience with. I also have many friends that have gone through with renovations and contractors, so I have an idea there. This isn't enough to be fully accurate, but I at least have foundational knowledge that I feel like not everyone comes into this with.

    I also used to be a senior customer service representative who dealt in return and warranty situations, which gave me the toolset and experience of guiding people who are usually quite upset (I would also be assigned any client who ever threatened a lawsuit) and helping to explain the process of what to do, why the things I offer have benefit to them, and many times could upsell those customers into packages that were worth hundreds to thousands more even though they contacted us for returns and refunds.

    Marketing I experienced a little through previous employment, but I plan to try connecting with a couple of friends who run their own marketing companies in the area for advice.

    A question with financing I have is do you know much about the DSCR financing where the lenders look more at the data for the property to ensure stability and repayment as opposed to the income of the borrower? I've seen that as an option and am considering that as well.

    Thank you again so much for your advice because I need all that I am able to get. I will certainly add those points to my mission.

    0Reply
  • Brittany Chrismer
    OP
    Member since 2023 · 5 posts · 1 vote
    3y
    Quote from @Dustin B.:

    Hello from Appleton. There is a fairly large RE community in this area, a few REIA groups that have regular monthly meetups. To be honest, not as many local investors are on BP as you'd think. Best way to start out is networking and meeting others with similar goals and interests.


     Hello!

    Do you know if any of those are online groups for networking that way for the area? With me working 12hrs about 5-6 days a week plus 16hrs on Sundays, it will be hard for me to make time for official gatherings and clubs.

    1Reply
  • David Nelson
    Investor · Green Bay, WI · Member since 2015 · 11 posts · 4 votes
    3y

    Hey Brittany, I was able to replace my W-2 in 90 days. All due respect to people who have had a different experience. I hope I dont have to tell you not to let other people discourage you.  I mean family or "real estate professionals".

    I started a wholesaling company, co-founded a real estate investors assn, and did it with bad credit, no cash and no diploma. Message me if you want someone who can tell you your dreams ARE possible if you work for them.

    2Reply
  • Kelly A.
    Wholesaler · Eau Claire, WI · Member since 2014 · 133 posts · 32 votes
    3y

    Brittany hi, have you chosen a marketing channel and got your lists together? 

    2Reply
  • David Nelson
    Investor · Green Bay, WI · Member since 2015 · 11 posts · 4 votes
    3y

    @Brittany Chrismer

    You should be working all those hours in wholesaling real estate. You'd be blowing the **** up.

    1Reply
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