How many deals a month part time?

Question

Just have a general question for those of you with wholesaling experience. I am at a pivotal point in the direction I am going and am trying to get a feel for the potential and best place to focus my extra time.

In your opinion how many wholesale deals a month do you think someone can manage putting about 15-20 hours a week into the business? Eventually it would be full time once income is up enough.

I know it can depend a lot on the market and area, I know it can depend a lot on what types of tasks you can automate and it will be systematized at some point but at first I will be doing all the work.

Another question that I think is important is if you had to pick a average number to shoot for what is your average profit per wholesale deal, 3k, 5k, 10k? I know it can vary a lot but if you were advising someone so they can plan financially what would you say is a realistic number to shoot for?

The median house price in the areas I am working in are around $105,000 - $125,000. Nicer upper midrange homes are in the $200,000 - $300,000 range.

Joshua D. · Answer

@Michael J.

I realize this is not answering your question, but it's kinda like asking how much money can you make starting a pizza shop? Millions? Nothing? This all depends on your ability to about 20 different things: outsourcing work, marketing, cost cutting, management, etc.

I realize, they say it is important to have a goal, but I personally think that your goal shall be to get your first deal done. Once you get to or three deals under your belt you will be able to see simply how many you need a month to make $10,000 or how much time it takes.

I guess I'm saying that the answer to this question depends so much on the individual investor.

Good luck out there!

Steve Vaughan · Answer

Since wholesaling is just a job (with no income guarantees) that requires an incredible amount of knowledge, I would do my extra $80k/yr OT.  Sounds like a sure thing.

Most of us sacrificed for a time to build capital.

I didn't begin wholesaling properties that weren't a fit for me until I was investing in my market full time for about 10 years.  It is much more than sending out some I buy houses for cash letters (hope you are more creative than that!) and watching the checks roll in.  You need to know about real estate.

Either way you will be building the capital you need/seek to actually invest, right?  Obtain passive residual income to leave the J.O.B.?

Go with the sure thing, the OT.  Work hard and save for a couple years and learn as much as you can about RE as you go @Michael J.!

Joshua D. · Answer

@Michael J.

I agree with @Steve Vaughan take the money you can make doing the day JOB

This could be 4 down-payments on cash-flow positive rentals.  If you bought 4 a year for say 3-4 years and had 12-16 properties and 3,000-5000k a month in a much more passive and steady stream of income then wholesaling could ever be. (Not to bash wholesaling, but rentals are just that amazing).

Glad you are looking into all this!

Michael J. · Answer

@Steve Vaughan

You make some very good points. I have done some REI off and on for about 10 years but not a full time business, I have learned a lot over the years and with additional study, I mainly have experience with rentals and property management. Wholesaling is probably my least familiar area as far as the process of getting it on contract and then finding a buyer and the closing process, although the more I learn the more comfortable I feel with the overall process.

I have enough experience with REI to know that it will be my future method of generating full time income, at this point mainly through rehabbing and rental properties. My thought is that wholesaling would fit nicely with the overall big picture and allow me to keep certain deals for myself as they present themselves and then rehab or wholesale the rest depending on the need.

It would still work out going either path I think, I mainly want to make sure my time is utilized the best with the overall goal of a bigger rental portfolio.

Account Closed · Answer

I totally agree with Joshua D., the questions you are asking are dependent on your drive, how you market, what you market, etc. There is no set answer but what you can handle yourself.

Michael J. · Answer

I guess what I am trying to determine is potential for someone that works hard and knows how to focus.

Part of the problem is I am in a situation where I can increase my J.O.B. income about an extra $80k a year for a few years or more if I want but it will require travel and high stress so I won't be able to focus on wholesaling. I REALLY, REALLY would rather focus on REI though so I'm trying to get a feel for the potential of focusing on wholesaling as an alternative or would I be better taking the extra income and put in buying properties.

So if the pro's think doing 1 wholesale deal a month making $5,000 committing 15-20 hours a week into it is a crazy idea, then it may not work, however if it is completely within the realm of possibility to make 1 or more deals a month part time then it would be well worth trying it for a year and see where it goes. The J.O.B. potential is not a do it now or forever lose it thing so I could go that route later.

I think wholesaling will meld together very well with finding potential rehab deals and rental deals so that is also another long term plus for building the rental business.

How many deals a month part time?

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