i know a lot about wholesaling. I am a realtor and do really well. i have enough in the bank for 6 months rent and can use this 10k as leverage.
should i go 10k in debt with a credit card to get my marketing campaign set up? i was going to do direct mail and maybe some PPC
I want to be a full time investor instead of being an agent. I plan on referring all the people who arent motivated but want to sell to a different agent so i can focus on being an investor and wholesaling. so i'd make about 20% commission or so
I agree with Wayne B. No. Never.
Ok , you say you do really well ................but you are renting a place . Now you want to go 10K in debt for marketing for wholesaling .
If I were in your shoes , I would spend more time and some money promoting myself and making contacts to sell real estate as an agent . Then buy a house for yourself , once your situation is very stable , start buying more properties for your self
Credit card debt is the worst kind of debt, where as mortgage debt is often considered the best. I would pass on doing this
also to mention im 19 years old and cant stand realtors. i want to get out of this business. 10k in marketing thats only two deals
$10k is a lot of marketing. Are you renting a billboard?? ok that was a joke. There are some inexpensive ways to market your business though. I would not go into that kind of debt in pure marketing expenses right off the bat. Why not start part time until your wholesaling business earns enough to equal your current situation. Then maybe make the break into full time investing. Regarding your marketing budget, you could increase your marketing as the deals come in. Take a percentage of each successful deal and dedicate that to more marketing. This way you are not starting off in such a hole but are increasing your budget according to your success. The deals will come, even on a shoestring budget.
thanks guys i appreciate it.
but if i can only target 500 people with direct mail and mail to them 4 times = $1000
then why not target 1500 people with direct mail = $3000
i did a couple wholesale deals when i lived in VT but now im in a different market so i want to go hard with my wholesaling
That's all well and good but I wouldn't go into debt doing that. Heavy debt plus new business is usually a bad idea. Def keep selling as an agent. If you must go with that type of direct marketing, pay for it out of your commissions (you said you do well) or go with more inexpensive forms of marketing at first. Then, after your first closing, go ahead and use it all for marketing if you want. You still have an income source through your commissions. Wholesaling is great but it takes a lot more than a fat marketing budget.
should i go 2k in debt? or are you saying not to use my credit card at all
ill be bringing in so many leads that ill be able to refer them to other agents and make my money back in no time, meanwhile searching for the diamond in the rough from all those leads
I’m a big believer that scared money doesn’t win, but why not test out a smaller sample size before blowing it up big?
I am a full time investor and wholesale a decent amount of properties per month. I would highly suggest using cash or credit to get into wholesaling, but I would not just go ahead and spend $10k aimlessly without knowing where and how to utilize those funds. We spend $10-$15k per Month on marketing, but have experience in the field and use broad sources of STARTEGIC marketing. Wholesaling can literally change your life if done correctly and I would HIGHLY recommend getting involved! Purchase a lower tiered course and inhale the information, then hire a reputable coach for a decent fee and get going! I am not sure how well off you are now, but making $20-$50k per Month wholesaling is VERY doable! Good luck!
@Jeff Jerma No. No. No. No. No. No. Yes. I meant all of those "No"s. In the Austin market that would be a complete waste of time and money. Since you are renting you probably did not notice every property owner in Austin is getting at least one "investor" mailer a week.
It is EXTREMELY unlikely that you will make 10k off the mailers.
Suggest you do door knock after a few 100 homes you know if this will work. Cost=your biz cards.
There is a huge difference in the Memphis and Austin markets.
Be smart with your money. Right now it sounds like you may be in a different position than you want to be. Work hard as an agent/wholesaler to build some cash. You can do well in either of those gigs by just sticking to it and working hard. Remember, nothing worth while happens over night. Being a wholesaler can be very lucrative but it takes a true hustler, as does an agent. You can start wholesaling with no money and just a great work ethic. Go knock on some doors and see what happens. Whether you get someone to sell you their home or you help them sell it. Either can generate more stress free income
I'm still caught up on the "can't stand realtors" vs "i'm a realtor" part.
the self deprecation is strong with this one.......
@Jeff Jerma Save a portion of your commissions from being a realtor and live a little frugal for a while to save up so you don't use credit. Save that money for marketing and try to be cost efficient when you start marketing. I had postcards made first to mail out. The post cards cost me $.06 per card and $.34 for the postage, so I could do 25k of direct marketing for $10k. I used to live off a small income and was able to save a good portion of my income because of living frugal and not frivolously spending (not much eating out, no shopping, no drinking, etc.). It's not for everyone but it's a good alternative to using credit!
@Michael Biggs this is the biggest disservice the pro wholesaler camp does to people.. some markets wholesaling is very viable others its simply a non starter and being a top agent over a lifetime career is far better.. then invest for your own portfolio.
were wholesaling works in big numbers is in areas like a Memphis were 50 to 60% of the population rents. @Rashard Alomari therefore burnt out landlord syndrome is quite alive and that's where you get your deals..
in high value markets and super stable rental markets its a complete non starter unless you have a boat load of cash and can actually buy the homes..now I know contract flipping in TX seems to be OK.. but in other states its as illegal as heck the way its taught and done.. I know our state if you advertise a home for sale that you don't own.. and you get turned into the department of real estate your going to get a cease and desist and a fine do it again and again and your in major trouble. our big wholesalers here and there might be less than 10 in our market they all close. And most are doing new construction because there simply is not enough inventory to keep a pipe line unlike any of the major mid west markets that have old housing stock and hUGE swaths of renter stock..
@Jeff Jerma just make the $10k as an agent and use the money for marketing.
Credit Card debt at those interest rates is not the best idea.
Just be a better agent than the ones you don’t like.
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