Hey everyone my name is Tyrell Townsend and im a newbie to REI. After a month of studing real estate and attending local meetings i feel like I am prepared to at least get the ball rolling but my question is, is there really any money in being a wholesaler and if any of you guys are in the chicago area can you elaborate a little more about the market here any help would be appreciated thanks
There's a lot of money to be made in wholesaling. I've been investing for over 20 years and I still wholesale. If I come across a property that I've analyzed that doesn't fit my M.O., but fits another investor's, and I can add my fee into it, I'll just tie it up, then send it their way. Why would I leave money on the table?
Hey Joe thanks alot for your response, a lot of people been kind of discourging me from doing it saying there wasn't any money in it anymore but thanks alot im definitely still highly motivated to start investing jus needed to hear from people who were actually out doing the work instead of the negative people thanks again
@Tyrell Townsend There is ALWAYS money to be made whenever there is money changing hands. The money will not be in the industry... the money will be in your "drive" to make money.
Jon Huber, Real Estate Agent in New Jersey (#NRS0565737)
If there are 100 people in the room, and only 1 of them tells you something positive about what they did to be successful, and the others are all "Debbie Downers", you have a choice. Either listen the that one successful person, or listen to the majority.
thanks you guys i really appreciate it @Joe Villeneuve @Jon Huber
Find the DEALS!
The Buyers will come....
@Tyrell Townsend , FYI, to get the mention feature to work properly, you have to start typing the name after the @ symbol (or just a ? after the @) and then wait a couple of seconds and choose the name from the list that pops up under the text entry box. You can NOT just type the whole name.
@Brett Russell lol thanks... thanks will do @Emerson Miranda
Contrary to popular belief there is money in wholesaling. Now, with that said, it does not come easy. As the saying goes, you need to dig through a lot of dirt to get to gold and a lot of time people are not willing to dig deep enough to get to the gold. They go a little ways and then give up and say it doesn't work.
With that said, I believe it is also very important to know your numbers. Know your comparables, follow your formula and understand how to estimate repairs. This will make you a good wholesaler.
Another thing is you do need money for marketing, whether it be yellow letters, postcards, bandit signs, flyers, or gas for your car to go knocking on doors. There are expenses involved.
I definitely think there is a lot of money wholesaling. You need to be ready to grind it out and really work for your paycheck but it is possible!
All very positive replies! I love it! I am new as well and am doing my homework and learning as much as I can. I am about reading to get my ball rolling. I have quite a list of abandoned properties just from Driving For Dollars, so I feel everything is falling into place. Patients and staying passionate about learning will pay off.
Is their any money in selling cookies? Is there any money in selling shoes?
Do retailers buy cookies at a discount? Do shoe stores buy shoes at a discount? The answers to these questions are all "yes". ...So Is there any money in being a 'wholesaler?'
A resounding 'Yes'. Do the work, you'll get the pay.
Thanks to everyone for all the positive responses I am a little more motivated after hearing from you guys I understand that nothing comes easy so I am prepared to get out there and start working hard. Thanks again i'll be updating my progression in the near future and wish everyone nothing but success on their journey as well.
There is definitely lots of money to be made from wholesaling. The biggest problem that people don't pay attention is they don't learn their market so they can't find deals that people want. What might seem like a good deal in one neighborhood might not be in the one next to it. I've made a lot money wholesaling in Orlando this year alone.
Your wholesale profits will be determined by your ability to find an negotiate killer deals.
I do not think that "wholesaling" alone, in 2014, is a sustainable BUSINESS. The marketing costs are high, so you need to be able to make $ off more leads than the 1 in 20 or 1 in 30 that turn out to be a "wholesale" deal.
I put wholesaling in quotes to emphasize, that's just a word we use in REI - it doesn't mean anything to sellers or real estate agents or title companies, etc. Personally, I think it's a very limiting term. It says "all I'm going to do is flip paper". And I'm saying, in most markets where we compete, it's hard to make a living just flipping paper.
The successful model I see is more of a consultative model (real estate solution provider / problem solver) with multiple exit strategies (assignment, rehab w/ hard money, list it, lease option it, etc.). People that create a model like that are able to monetize about 1 in 6 leads.
And "wholesaling" is really nothing more than the MARKETING PORTION of the REI process - finding motivated sellers, and that starts with LEADS. Leads are your raw material in this business and if you have only one way to mine that material (flipping paper) you will struggle to make positive ROI on your marketing budget. That's what I'm seeing in 2014. I am no guru. But I am down here on the street fighting for leads in multiple markets throughout the U.S. DON'T LIMIT THE WAY YOU DEFINE YOUR BUSINESS.
@Tyrell Townsend As far as any numbers are concerned, if you have a system, you can make a pretty good living wholesaling. Like I said though, you need a system...and a system, to be complete, must have a beginning and an end...and the beginning must touch the end, much like a circle. Once you've set this up, you can run with it. Here's the way I show people how to do it...and yes, I still wholesale as part of my business. If I set the system up, why would I not continue to use it? Why would I leave money on the table?
@Dev Horn Hey thanks for your knowledge and insight of the business and yes i'm not just limiting myself to only wholesaling but just want to use it as a starting kit on my REI venture and also use it as a learning curve because there is alot of things to this business that I will have to learn with experience (i.e. the exit strategies that you suggested). Thanks again for taking the time out and lending sum of your knowledge i appreciate it.
Join the Largest Real Estate Investing Community
Basic membership is free, forever.