Hello Bigger Pockets,
I will start this off by saying biggerpockets has given me 80% or more of the knowledge I've obtained about real estate investing. I've listened to almost every podcast, read multiple articles/books, attended the webinars and much more. I originally started in mid 2017 learning about real estate investing, for my LLC "DMV Real Property Group" in Aug.2017, I completed 1 wholesale transaction in Nov. 2017 & two wholesale deals in March/June of 2018. Those wholesale deals were successfully flipped for the target profit mark of the investors that bought the contracts.
Wholesaling has been my "one thing" that I've focused on within real estate BUT I've learned and fully comprehend the "Buy and Hold", "Fix and Flip" aspects of real estate also. I choose wholesaling because my way of thinking is that if I can produce the properties ,then I'll be able to hand pick which properties I'd like to Hold, Flip or Wholesale in the future.
Since my last wholesale deal (June 2018) I've seen a drastic decrease in lead funnel, which has lead to no deals what so ever. I've constantly used direct mail campaigns, cold calling via a freelancer on upwork (cold calling myself also), driving for dollars, door hangers and social media marketing. It just hasn't produce the amount of leads monthly that I'm used to seeing. The leads that have come in unfortunately had no potential.
My question to biggerpockets is, should I start to move into another aspect of investing?
Maybe fix and flip or buy and hold? I already have a target area in pennsylvania for low cost buy & hold property that I'm very familiar with and certain parts of the DC, MD, VA areas for flips. My only concern is of course finding funding to make these two options possible.
Or should I just stick with Plan A until the break-through happens for me?
I've tried in the past to get funding for flips & rentals BUT to be perfectly honest my credit isn't great & the companies I've spoke with regarding money say I need more experience flipping because they cant judge me based off the successful wholesale deals I've produced.
By no means am I looking for a "handout" or to quit, I made up my mind from day one that I will either sink or swim in real estate. Although I've done a few deals I still consider myself "new" and I'm writing this post looking for some guidance from anyone who took the time to read this "essay" lol..sorry I typed so much but this is the only place I can come to, to express all the feelings & thoughts I have built up inside & everyone reading can relate or understand how I'm feeling.
Thank you for taking the time to read everything I wrote, this was kind of like therapy being able to get all of these thoughts out of my head.
Advice, Opinions and Constructive Criticism is welcome.
Trevor Foster II
DMV Real Property Group
If I'm reading your post correctly, you have done 3 wholesale deals in the last 18 months. So my question would be how many leads were in your 'funnel' these last 18 months? Ya gotta get those lead numbers up.
Whatever aspect of real estate you get into, it's important to remember it's all a numbers game. X leads yield Y serious prospects yield Z deals. This system works in wholesaling, flipping, long term buys and even for RE salespeople.
If nothing else, remember this: YOU GET A GREAT DEAL AND THE MONEY WILL FIND YOU! It's all about finding the deal.
Lastly, go back and speak to the 3 investors that bought your inventory before. Take them for coffee/lunch and find out what they are looking for, how they do what they do and how you can better be of service to them.
Best of luck! Keep moving forward!
@Trevor S Foster how many leads did it take to get 3 deals? I think you’re realizing why wholesaling is so difficult to do long term. I’d look into other avenues
@Trevor S Foster What's the "breakthrough" you're looking for?
Wholesaling is a job, and a tough one. With some asking around, you can find lenders to fund properties for you, even with little to no experience.
If the goal is to get into flipping and holding, I would work toward that goal, and forget wholesaling full time. It's not getting you closer to where you want to be.
@Marc Winter Yes 3 deals since November 2017, Although I had a few leads that turned into bidding wars which we lost, most recently a Harvard Street property in DC. Since about August of 2018 the leads have really dried up and I cant understand why to be honest. But there's no question I will continue on the journey. i'll definitely take you advice on do more networking with the investors I have.
@Caleb Heimsoth I started learning real estate May of 2017, got my first deal Nov.2017, second in March 2018 and the last I actually closed on my birthday June 22nd 2018. I honestly realized wholesaling was difficult from the start and a challenge I was willing to and still willing to pursue. Wholesale isn't the end goal but I feel its a stepping stone to my goal which is buy and hold + flipping. I'm just looking for ideas on how to make it better.
@Jason D. My idea was to build a wholesale business with a goal to use that as a vehicle to produce the properties that I would flip or hold. I don't want to do wholesale full time but I would like to be able to get to the owner first/directly. I also feel like there's a void in wholesale, alot of bad wholesalers. Ive been in construction for years, also worked for a materials company so I understand rehabs, cost etc which is why I believe all 3 deals I have done were successful for myself, the owner and the flipper.
All in all I see myself being the guy majority of investors in the DMV will call first when they need a solid flip in the future. But also being able to hand pick what I want to keep for myself at the same time.
I appreciate all your comments and opinions also, my reason for this post was to get some new ideas and opinions on what I can do to change the current situation
If you are serious about it identify a market you can be successful in and move there. Just like someone serious about finance will move to Wall Street or someone serious about acting will move to Hollywood The Dmv is owned by the big boys on tv and on buses.
Is there a lot of flipping activity going on in your market? If so, then there are wholesaling opportunities.
Wholesaling is about finding DEALS. You can move to fix and flip, but then you still need to source deals. You can go to buy and hold....but you still need to find deals that cashflow. Whether it's rehabs, assignments, buy and holds, you have to find a good deal.
The most successful investors in real estate have an effective marketing machine that feeds them opportunities constantly. I would re-visit your marketing plan.
@Trevor S Foster good morning! I am happy to see you thinking about options, as that is the biggest sign of your success. Markets will change, that is the one certainty in this industry. Your ability to re-invent yourself is what will define your success.
In the Chicago market we have been experiencing a slow down in viable whosale deals for about 2 years. All of the investors I know wear many hats; wholesale and fix and flip and buy and hold. I believe that would be a great strategy for you to keep things moving.
@Marc Winter is right on target with his advise. Start taking every investor you know out for coffee. Prepare a simple 2-3 page business plan for your coffee chats which include; your 3 year goals, target market(s) and the composure of those (schools, income, crime rate, 3 year real estate market trends including market time and comps, etc), end strategy, and your anticipated financials. Include some charts and photos of the markets you are interested in. Make sure your target markets are focused; no more than a one square mile area. This will make you a master of your market - laser focus.
While this is going on learn your market hands-on. Have your realtor set up searches for your target market(s) to be sent to your email every morning and every evening. Go into as many properties as you can every week which are for sale with the following intention; see which properties are selling the fastest and how this compares to the location and the interior finishes (flooring, paint, cabinets, tile, etc). You will begin to see a pattern here and you will soon learn what finishes are necessary in your market and corner lots on a busy street sell for less :). The finishes are important if you are going to fix and flip as they are a critical factor in your construction budget. Finally call the local municipality and speak with the business development office and ask if there are any changes in the near future and what plans they have for future developments. After a month or two you will know your market like the back of your hand, and you will be able to converse with your investor friends with great authority.
@Trevor S Foster it really comes down to your "why"? Are you just doing real estate because you enjoy it? Real estate is a sexy business, maybe thats why you got in?
My advice would be to sit down and be 100% realistic with yourself and what your goals are 1, 3, 5, 10, 30 years down the road. Like most have said, Wholesaling is a job, a very very hard stressful job, maybe it's not for you. OR maybe it is. It all comes down to what you write down on that paper for those goals.
@Pratik P. There's alot of flipping and buy/hold in my market (DC MD VA). There's definitely wholesale opportunities but for some reason the leads have fallen off. The last few leads ended with a bidding war. My main thing was re visiting my marketing and coming to bigger pockets for ideas. I appreciate your feedback.
@Sue Hough Thank you! I've taken notes on everything you said. I am looking to re-invent myself/business and I look to be an investor that wears many hats. I always hear bigger pockets podcasters say focus on "one thing" first and I truly believe setting up a correct wholesale business will be platform for buy/hold and flipping. Thank you again !
@Cassidy Burns I love real estate..not up for debate and I will make it work, to me there's nothing sexy about staying up until 4am working on real estate every day, listening to multiple podcast, reading endless articles and books. I've spent countless hours educating myself and building my business. If I just "liked real estate because its sexy" I would have quit once things weren't going my way. I've put in the work and will continue to do so. I wouldn't ever put into my mind that "its not for me". Wholesale is very stressful, it is a job, I knew how hard it was prior to committing. Thats why Im here for new ideas on strategy to better myself and business. I appreciate your comments and advice !
Thank you guys/gals for taking time out of your day to comment, I am always open to criticism, opinions and advice.
That's more deals than most wholesalers. I'm biased, but I'll say that you're in the wrong business.
You need to get into rentals. Wholesaling is a job, and who wants that? Buy rentals and don't look back.
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