Realistic wholesale Goals

21 Replies

Hi All,

So...I am new to all of this. I accidentally stumbled on real estate wholesaling while searching indeed for a job last week. It peaked my interest.

I have my first property under contract.

Can someone tell me (if you feel comfortable) how many deals I can realistically expect to do or what kind of monthly income you are making doing whole sale?

I am trying to feed my motivation and do some realistic goal setting. Thank you. 

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Hey Shannon it's really up to you. My first 2 weeks in Real Estate i had my first deal. Months later I had a record breaking day with 14 Homeowners agreeing to sell me their house all in one day. Also one of my students hung a Bandit Sign up and on that one sign someone called him and on that one deal he made $500k in 3 weeks. Yes you heard me $500k that he split with his buddy who brought the buyer. So after fees he walked with $216k without spending any of his own money. Crazy I know but this what possible.

Thank you, that is encouraging.  My biggest thing is this is a smaller rural town, but finally hitting growth with new plazas being put in, about an hour and a half north of St. Louis. Not a ton of value in the real estate, but still $$ to be made if I work it regionally.  Good for investment property for sure.

I read so much about it, and there are a lot of people talking about wanting to start wholesaling, but haven' seen a lot of "real" people giving testimonies and doing deals.

Thanks! 

@Shannon Guertzgen take what was posted as the absolute 100% exception to the rule. 90% of wholesalers may do one or two deals total and have no real "income". Honestly I am probably on close to 10 wholesaler lists, and I have seen maybe 10-12 deals in the past 6 months, with most coming from one company. Those deals are also still being advertised 4-5 months later... The other wholesalers I have yet to receive any deals.

It sounds glamorous on paper, and then posts about 14 people wanting to sell you houses, and $500k deals in 3 weeks all sound awesome. However 99.99% of people will not get these kind of deals.

Realistically, how much do you know about real estate? Can you determine rehab costs, ARVs, are you a good salesperson? There is a lot to it.

Realistically, working it regionally I think I can do okay. 

I have an agreement for referrals with a contractor who has done a lot of work with me in the past. He is going with me to determine the costs of repairs. I am using Realtor.com and comparable houses on the market in the neighborhood to determine ARV and rental prices.

I have a couple of buyers from calling the Necac landlord list in my area before I found a property.

The first one I have now is

ARV 75000

Repair 10-15000

Contract 34000

I'm trying to sell for 40000

That's realistic, right? 

 Thinking I'll probably avg 5000 per sale here regionally. I have several online marketing strategies for selling, but still nervous about finding steady buyers for this smaller area.

But for just finding out such a thing about Real estate Wholesaling a week ago and already having a property under contract is a good start, I think.

I took state courses in real estate years ago and always loved the idea and researched investing. I was successful in my personal training studio, so I never really pursued it, yet. I'm above average in sales.

 I have a ton to learn for sure, but I am willing to get my feet wet. I'm motivated and an entrepreneur at heart.

Thank you for some realistic input, and your personal experience, its what I am looking for and it is much appreciated

@Shannon Guertzgen I would say if you do 10 deals a year that would be good. Your average would probably be 5-10k per sale.

Large assignment fees happen but they are very rare and wholesaling is hard work and often takes a lot of marketing dollars

Thank you, Caleb. Are you speaking from your current experience? That sounds realistic to me.

You should check out rehabvaluator.com. Their is a ton of free information and rye software is perfect for wholesaling. I use this to evaluate deals. Previously I was using it for wholesaling, but quickly found out that wasn't for me.

I am having a tough time wholesaling. Of course I have limited time between my internship, other work, classes and  getting my real estate licensing. If I were you, I would grab any job you can and get your licensing at the same time if real estate is what you want to do. But make sure you get that job while attempting wholesaling on the side all the while searching for a better job. Once you try wholesaling for a month or two and learn about investing here on BP you will know if this is a venture you still wish to pursure. 

Unfortunately after reading Sadrud's post above any real advice you get isn't going to sound too glamorous compared to that. Posts like that are almost as bad as the guru-ing.

It is possible someone hung up a bandit sign and made $500k. What a coincidence it just happened to be one of his students. This advice is like telling someone to buy a lottery ticket because one time someone won $100M. I can't say it's impossible, but I can say it isn't going to happen.

Realistically in my market, most houses have an ARV averaging 80-100K. I'm looking at 5K per deal.

Well, currently it will have to work, but eventually I will get into Virtual Wholesaling once I am comfortable with the process. 

Originally posted by @Shannon Guertzgen :

Hi All,

So...I am new to all of this. I accidentally stumbled on real estate wholesaling while searching indeed for a job last week. It peaked my interest.

I have my first property under contract.

Can someone tell me (if you feel comfortable) how many deals I can realistically expect to do or what kind of monthly income you are making doing whole sale?

I am trying to feed my motivation and do some realistic goal setting. Thank you. 

 Shannon, why not spend the time and effort get an RE License put same effort into getting listings and making a name for your self = lifetime of return - wholesaling sounds so short term

Thank you, that is a reasonable question. I looked into it with a local broker. There are a few reasons:

1) It costs $$ My husband's health has me broke right this second and I need large lump sums of cash quickly to pay debt. 

2) Realtors make maybe 6% and split with a broker. In my area that might be 1500 after all said and done.

3)The housing market is too small with too many agents and not enough listing here

4)Wholesaling opens up virtually allowing me to deal in any market I choose. 

5) There are new deals in the housing market everyday just as in real estate. More repeat buyers in wholesaling buy more often investing in properties. 

It's not to say I wouldn't be open to getting my liscense in the future, it just seems wholesaling is more lucrative, especially in my current situation. 

@Shannon Guertzgen no it’s not based off of experience. I don’t wholesale and have no interest in doing that.

I’m merely speaking on what I’ve read about and have heard others say. Typically I think a wholesale fee is 3-5 percent of ARV.

What do you think is more likely, someone actually made 500k from a bandit sign? Or someone posting on forums about an imaginary student making an imaginary 500k from a bandit sign in hopes that you may want to be one of his lucky students so he can teach you how to do the same thing, with none of your own money!! Just sign up today for a low $9,999.99 payment, a $50,000 value!!

Every single new wholesaler finds the deals that only need $10k-$15k rehab while I've been doing this for years (and sold 100's of properties) have seen 2 of those in all of the thousands of houses I've been in.  What am I doing wrong? LOL

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