75,000

5 Replies

step 1. Put all your money in your bank account. 

Step 2. Spend 100 hours learning how to wholesale from books, youtube via chromecast (especially everything from Sean Terry), and podcasts via sticher app.

Step 3. Use $1,000 or less to set up your business needs like attorney, phone system, etc

Step 4. Learn how to wholesale by hardly spending any money, but what you do spend goes to direct mail.

Step 5. Once your process works, scale up with the money you have in your acct, and your profits.

@Thomas Soliz I would use a couple grand to get set-up with all your wholesaling needs. I would also follow Jeff's advice and learn how to correctly wholesale whether from youtube, or this forum, or RE Mogul. Then, I would start looking for properties that are super cheap regardless of area that are in livable condition or close too it. Make a list of them, in my area I would look for houses under $25K, shoot out lowball offers on them, try to pick them up for around $5K each, then if they need a little TLC, aka paint/carpet or something, then do the work to spruce them up. Once you get one that is ready to go, advertise on criagslist and bandit signs something like this: 3 bed/2 bath NO CREDIT CHECK Own your own home today!!!" Then when people contact you, have them fill out a basic application. Then go through, find the best candidate, collect a down payment of say $2K, then the balance is in the form of a note. They pay you $400/mo for 10 years, and they own it free and clear. Now you can sell part of the note to bring in money right away, like the first 5 years of the note or the second 5 years, then collect on the remainder of the note monthly. You can also sell the whole note. I would sell at say 70%-75% of the value of the note. Now you just spent $5k and turned it into $30k. All the time you're wholesaling and making $5k-$10k a pop, and then repeat the above process. That's my advice. Alos, if they default on the payments, you kick them out, and sell it again the same way and make another $25k or more. Good luck.

@Chris Piper   you do realize with the new dodd frank rules and safe act offering financing to owner occ's is a lot more challenging than in the old days. And a note buyer if they have any clue as to what they are doing will want verification that the note was legally created vis a vi Safe act.

I like this strategy for NON owner occ in states that allow those to be exempt from Safe Act.

Although in practice I am sure folks that are buying that low of end owner occ are not litigious types and just kind of think of themselves as glorified renters.. I have done 4 of these pre dodd frank in your state and none of them made it past 18 months without default. and if its a contract for deed depending on equity one would have to do a full blown foreclosure to get the property back.. so a little more to it than meets the eye.

one could always just sell for cash for a profit and be done with it as well. In your area were your bidding on 5k houses its really like being in the USED car business.. just look at these as objects if you can make a few bucks move on.. its not like there is any shortage of low end real estate up in your area and all through the rust belt.