Do You Have What it Takes?

Question

When I read all the enticing get rich quick stuff out there, I just laugh.  I think those ads should be just a tad more honest.  I think the following ad, run in a London newspaper in search of an arctic exploration team about sums up what any entrepreneur should consider before taking the leap:

MEN WANTED: FOR HAZARDOUS JOURNEY. SMALL WAGES, BITTER COLD, LONG
MONTHS OF COMPLETE DARKNESS, CONSTANT DANGER, SAFE RETURN DOUBTFUL.
HONOUR AND RECOGNITION IN CASE OF SUCCESS.

:lol:

Brice C. · Answer

Buy and hold is your retirement account.
Flipping builds your investment faster.

Michael Rossi · Answer

Oops!  You forgot that the expenses continue to rise also, often outpacing the rise in rents.

Mike

Brice C. · Answer

I made 47 k in 37 days on one deal. 
I then split it with my investor who was tickled to death with the ROI... 85%. it came out to $23,500 each and was not the only deal I was working. $1,000 an hour is a very realistic and easily attained figure for working this business. If 70 percent of all millionaires come from real estate then I guess we have all improved our odds over the other 30 percent.

Dustin T · Answer

You know what's funny? Those motivational speakers who say things like "make $45k in 45 days!" or "How would you like to double, or even TRIPLE your income next month?!"

those guys always drive me nuts because they are so shallow and typically scammers....

but in all honesty, for those people who truly work it hard and don't give up, wealth does seem to acrue in a moderate amount of time. Maybe it's not as quick as "tomorrow" but the majority of the people trying to get rich by tomorrow aren't even following the rules of those programs/sytems anyways.

Account Closed · Answer

Michael,
All of what they said is true, but wholesaling is a great way to get started, and learn how hard and consistent you have to work to make just that $5K. If you can consistently make $5K per month wholesaling, then very soon you will probably decide that you want to be the investor, not the wholesaler, because you won't want to give that equity to the other guy, but finds a way to take it yourself. Good luck, Mike

Tracey B. · Answer

There's nothing wrong with having a property-based business, it can certainly be lucrative, but I don't consider that it's accurate to call it investing. It requires entirely different skills and a different mindset.

Account Closed · Answer

If you are good enough to make 5K a month wholesaling...what I call the "short money"...you're missing the bigger picture of the real estate business.

The long money...the continue cash flow from owning a free and clear rental property whose rents continue rise with inflation...is the big payoff of real estate.

Let's get real...if you find properties others are willing to pay you cash for...you just sold away a lot of expertise and effort for pennies on the dollar.

Get in this business for real and quit chasing the "fast but short buck".

Or at the very least, stop calling it "investing"...

Take some words of wisdom from Warren Buffet:

My 2 cents...

Jason Hanson · Answer

Starting out wholesaling 1-2 deals per month with an average profit of 5k is not unreasonable at all. You will just have to do plenty of marketing and get all of your systems in place.

Michael Rossi · Answer

What are you waiting for?  Have you tried?

Mike

Michael Juve · Answer

How about the lottery?  :lol:

While it may not be "rich" how unreasonable would it be for a starting out wholesaler to average 1-2 deals per month and average $5k or so on each one?

Now I know that's a pretty vague thing to ask as you don't know me personally, my situation, or how motivated I am. But that is a goal I have in mind for starting out and it sounds pretty reasonable to me. Sorry if this went off topic.