Is it possible to close 10 deals a month?

Question

Just curious with the right systems in place is it possible to wholesale 10 deals a month?

Nathan Paisley · Answer

It can be done. There are several ways to wholesale... You don't need a full staff either. Outsourcing is key. We live in different times... Learning to utilize the intra web is key to reaching those levels. It is extremely hard to scale to that level without a system if not impossible. Also a wholesale start to finish shouldn't take months. It should take days to complete. There are thousands of buyers in every state, just gotta find them ;)

Jon Holdman · Answer

I attended a local seminar recently.  A couple of folks who spoke do wholesaling on the side.  They do LOTS of marketing.  Both mentioned spending about $10,000 a month on marketing.  But they're really buying for their own rehabbing business and then wholesaling off the deals they don't like.  They didn't mention how many they actaully close, but I wouldn't be surprised if they're doing 10 a month between the ones they keep and the ones they wholesale.

I do get e-mails from another wholesaler who I would get gets close to 10 a month, based on the combination of "here's a deal" and "sold!" e-mails.

Belinda Lopez · Answer

Danny, yes it can be done but like everything you have to scale up with Systems and people to help you.  We have several Wholesaler groups in Houston who regularly do that many houses and more each month, but they outsource a great deal of their marketing, customer calls and have systems in place to handle everything else else.  Most of them also have 10 or more on staff so they are running large businesses with the payroll and other costs to go along with it.

The real question is not how many houses a month but what kind of lifestyle and what income you want to achieve?  You can do 10 houses but only get $500 - $1k per house pretty easily - does that get you where you want?  You can do 2-3 houses and make $5k - $20k or more per house. I can tell you from experience that it takes just as much work to close a $15k house as it does a $150k and sometimes the smaller houses are even harder and have more problems.  I have a knack for getting all the 'interesting ones' as my title company told me; strange/weird/crazy/probate/heirs/.  Now a guy just told me has $2 million buried underneath a $15k house and can he have a week post Closing to dig it up!

Any house under $50k and your buyers will have a harder time getting funded than higher priced houses.

Most wholesalers eventually transition to buying income producing properties for long-term security.  As one guy says, "I keep the best and wholesale the rest."  So what's your number?  10 houses or a monthly passive income of $10k/month?

Jay Hinrichs · Answer

Few in far between.. Unless they are buying larger tapes.. the man power to buy from single investors is pretty intense... If you think about how many you would need in your pipeline to consistently do that amount.  And it certainly depends on the market..

In some markets you would be hard pressed to find 10 deals in a year.. Others in the areas of super low priced homes you could find 10 a day.. ( like Detroit).. whether you could sell them who knows..

But one things is constant... everyone one runs in 10's   Hey I am a big player I do 10 deals a month.. Hey when I get to 10k a month passive income I am going to quit my day job.

etc etc.

I haved funded about 11 wholesalers and TK guys across the country my biggest player does 20 homes a month on average TK... and his average turn time is a bout 4 to 5 months. so he needs 80 to 100 homes in his pipeline at all times.. So that equates to 6 to 7 million he needs on hand to make this all run.... Plus a staff of 10.

A nice number though is 3 to 5 most smaller guys can manage that pretty easily.

Wholesaling is another matter I think that's all predicated by the ability to source the homes that make sense to sell to others... So you need to be tied into banks and tapes etc etc. so you can get some volume. And that is a big money bizz as well.. Need lots of cash to make that work

Is it possible to close 10 deals a month?

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