Quit My Job and Plan to Wholesale

537 Replies

Originally posted by @Adrien S. :
Originally posted by @Caleb Heimsoth:
Originally posted by @Matt K.:
Originally posted by @Caleb Heimsoth:
@Matt K.

You can’t reason with someone AFTER they quit lol. You have to do that before they quit.

@Melanie Hartmann. That’s pretty good salary if you’re a teacher? Better then any of my teachers ever made. I wish you luck but wholesaling is really the hardest part of real estate in my opinion

 I just want to know what a typical deal makes in wholesale world...

Best case scenario is likely 5k on average which means to replace 70k you’d need to do 14 per year.  But obviously wholesaling takes money.  

I met a local flipper last week who spends 4K on marketing per month to get 2 deals (optimistically he actually said 1-2) per month.  So if you spend 4K on marketing and make 5k per deal, to NET 70k you’d meed 118k per year in wholesale deals which is approximately 24 per year. 

 Best case is $5K? Lol, I don't even touch a property for that amount anymore. With as hot as the market is, $10-15-20K is normal in the midwest. Your friend needs help. $4K in marketing should be bring in more than 1-2 deals too. 

Well again I said average.  I’m sure it varies.  Let’s say it’s 10k a deal, with the same 4K I. Marketing.  Then at the same 118k gross you’d need to do 12 deals a year.  That’s possible but going to be tough.

As for the flipper, I think he’s fine lol.  He flipped 17 last year and is doing a lot more than that this year.

Originally posted by @Caleb Heimsoth :
Originally posted by @Matt K.:
Originally posted by @Caleb Heimsoth:
@Matt K.

You can’t reason with someone AFTER they quit lol. You have to do that before they quit.

@Melanie Hartmann. That’s pretty good salary if you’re a teacher? Better then any of my teachers ever made. I wish you luck but wholesaling is really the hardest part of real estate in my opinion

 I just want to know what a typical deal makes in wholesale world...

Best case scenario is likely 5k on average which means to replace 70k you’d need to do 14 per year.  But obviously wholesaling takes money.  

I met a local flipper last week who spends 4K on marketing per month to get 2 deals (optimistically he actually said 1-2) per month.  So if you spend 4K on marketing and make 5k per deal, to NET 70k you’d meed 118k per year in wholesale deals which is approximately 24 per year. 

I have funded 100 plus deals in philly last 18 months  most have wholesalers on them.. 2 to 10k average seen some higher but a lot of these folks all partner.. so there can be 2 to 5 people getting paid on one hud.. not sure what arrangements they have..  but my vendor prefers this as opposed to having his own Ack department..  you only pay for performance..  this model works best in cities with a ton of vacant homes or areas that are dominated by rentals.. .. it does not work in areas dominated by owner occ as they tend to be more coginizant of values and more likely to use realtors . 

Originally posted by @Adrien S. :
Originally posted by @Caleb Heimsoth:
Originally posted by @Matt K.:
Originally posted by @Caleb Heimsoth:
@Matt K.

You can’t reason with someone AFTER they quit lol. You have to do that before they quit.

@Melanie Hartmann. That’s pretty good salary if you’re a teacher? Better then any of my teachers ever made. I wish you luck but wholesaling is really the hardest part of real estate in my opinion

 I just want to know what a typical deal makes in wholesale world...

Best case scenario is likely 5k on average which means to replace 70k you’d need to do 14 per year.  But obviously wholesaling takes money.  

I met a local flipper last week who spends 4K on marketing per month to get 2 deals (optimistically he actually said 1-2) per month.  So if you spend 4K on marketing and make 5k per deal, to NET 70k you’d meed 118k per year in wholesale deals which is approximately 24 per year. 

 Best case is $5K? Lol, I don't even touch a property for that amount anymore. With as hot as the market is, $10-15-20K is normal in the midwest. Your friend needs help. $4K in marketing should be bring in more than 1-2 deals too. 

Well that's good to hear! Like I said, I don't need much to start with. I'm keeping my initial expectations low and on the conservative side. I have no personal experience doing it so, I really don't know what is actually possible... yet.

Originally posted by @Melanie Hartmann :
Originally posted by @Adrien S.:
Originally posted by @Caleb Heimsoth:
Originally posted by @Matt K.:
Originally posted by @Caleb Heimsoth:
@Matt K.

You can’t reason with someone AFTER they quit lol. You have to do that before they quit.

@Melanie Hartmann. That’s pretty good salary if you’re a teacher? Better then any of my teachers ever made. I wish you luck but wholesaling is really the hardest part of real estate in my opinion

 I just want to know what a typical deal makes in wholesale world...

Best case scenario is likely 5k on average which means to replace 70k you’d need to do 14 per year.  But obviously wholesaling takes money.  

I met a local flipper last week who spends 4K on marketing per month to get 2 deals (optimistically he actually said 1-2) per month.  So if you spend 4K on marketing and make 5k per deal, to NET 70k you’d meed 118k per year in wholesale deals which is approximately 24 per year. 

 Best case is $5K? Lol, I don't even touch a property for that amount anymore. With as hot as the market is, $10-15-20K is normal in the midwest. Your friend needs help. $4K in marketing should be bring in more than 1-2 deals too. 

Well that's good to hear! Like I said, I don't need much to start with. I'm keeping my initial expectations low and on the conservative side. I have no personal experience doing it so, I really don't know what is actually possible... yet.

 how are you going to start ?? everyone has to start marketing somehow..   also do you know who the big buyers are.. my client there is a big buyer 10 plus homes a month in Balt.. and there are others need to find those guys.. they are pros you don't want to get this stuff then try to sell to beginner investors that's no where street fast.. you need real buyers.

Originally posted by @Caleb Heimsoth :
Originally posted by @Matt K.:
Originally posted by @Caleb Heimsoth:
@Matt K.

You can’t reason with someone AFTER they quit lol. You have to do that before they quit.

@Melanie Hartmann. That’s pretty good salary if you’re a teacher? Better then any of my teachers ever made. I wish you luck but wholesaling is really the hardest part of real estate in my opinion

 I just want to know what a typical deal makes in wholesale world...

Best case scenario is likely 5k on average which means to replace 70k you’d need to do 14 per year.  But obviously wholesaling takes money.  

I met a local flipper last week who spends 4K on marketing per month to get 2 deals (optimistically he actually said 1-2) per month.  So if you spend 4K on marketing and make 5k per deal, to NET 70k you’d meed 118k per year in wholesale deals which is approximately 24 per year. 

That's a horrible ROI if those are his actual numbers. Some things need tweaking or he should pursue something else. I'd never keep a business going with numbers like that.

@Melanie Hartmann  

I quit my job January 2016 to wholesale full time. I did 3 small deals in the fall of 2015 and had a small list of 250 absentee owners I was mailing. My goal was to do 12 deals at $10K each in 2016. I figured if i worked super hard, networked a ton, and educated myself, i could get it done. I had insurance residuals coming in so i wasn't worried about my income for 5-6 months. I busted my A and did 6 deals for $30K in the first quarter. It was tough and i second guessed my decision several times. I fought through it, networked more, got more experience, etc. I finished the 3rd quarter at 20 deals and $200K. I partnered with another wholesaler and over the last 7 quarters, we've put systems in place, hired people, and run a legitimate business. We'll do about 85-90 deals this year (mostly wholesales but some flips and keeping some rentals). We use a ton of private money (@Jay Hinrichs - want to chat?) and close on all our deals. Our buyer's list is gold to us. We take care of them by doing events and hosting the biggest baddest investor meet up in my area. Our buyers get great deals and keep coming back. We'll top $1.5M this year and it's the toughest market to find deals I've seen. 

So my advice to you: ignore the negative people here, set a goal and a big why to go with the goal, and go get it done. Work past when you want to quit and don't stop learning. Joining a mastermind was the best $15K i ever spent. Good luck. 

Originally posted by @Melanie Hartmann :
Originally posted by @Caleb Heimsoth:
Originally posted by @Matt K.:
Originally posted by @Caleb Heimsoth:
@Matt K.

You can’t reason with someone AFTER they quit lol. You have to do that before they quit.

@Melanie Hartmann. That’s pretty good salary if you’re a teacher? Better then any of my teachers ever made. I wish you luck but wholesaling is really the hardest part of real estate in my opinion

 I just want to know what a typical deal makes in wholesale world...

Best case scenario is likely 5k on average which means to replace 70k you’d need to do 14 per year.  But obviously wholesaling takes money.  

I met a local flipper last week who spends 4K on marketing per month to get 2 deals (optimistically he actually said 1-2) per month.  So if you spend 4K on marketing and make 5k per deal, to NET 70k you’d meed 118k per year in wholesale deals which is approximately 24 per year. 

That's a horrible ROI if those are his actual numbers. Some things need tweaking or he should pursue something else. I'd never keep a business going with numbers like that.

Hard to tell a guy who’s flipping 20 plus homes a year successfully to change something lol.

I have this number:  2400 individual leads to get one deal, multiple times on BP, so I think that’s pretty accurate.  You need 2400 points of contact or pieces of mail to get a deal.  That’s just the reality of direct mail and that’s why I don’t reallt mess with it.  My time is much better served just networking and what not. 

Wholesaling isn’t easy and this is part of the reason why.. 

Originally posted by @Adrien S. :

@Melanie Hartmann 

I quit my job January 2016 to wholesale full time. I did 3 small deals in the fall of 2015 and had a small list of 250 absentee owners I was mailing. My goal was to do 12 deals at $10K each in 2016. I figured if i worked super hard, networked a ton, and educated myself, i could get it done. I had insurance residuals coming in so i wasn't worried about my income for 5-6 months. I busted my A and did 6 deals for $30K in the first quarter. It was tough and i second guessed my decision several times. I fought through it, networked more, got more experience, etc. I finished the 3rd quarter at 20 deals and $200K. I partnered with another wholesaler and over the last 7 quarters, we've put systems in place, hired people, and run a legitimate business. We'll do about 85-90 deals this year (mostly wholesales but some flips and keeping some rentals). We use a ton of private money (@Jay Hinrichs - want to chat?) and close on all our deals. Our buyer's list is gold to us. We take care of them by doing events and hosting the biggest baddest investor meet up in my area. Our buyers get great deals and keep coming back. We'll top $1.5M this year and it's the toughest market to find deals I've seen. 

So my advice to you: ignore the negative people here, set a goal and a big why to go with the goal, and go get it done. Work past when you want to quit and don't stop learning. Joining a mastermind was the best $15K i ever spent. Good luck. 

That's amazing Adrien! Thank you for sharing your success story and the grit it took to get there!

To the naysayers: YOU WIN ok?!? No, I do NOT have all the answers but I also don't need to before getting started. I have already considered EVERY SINGLE ONE of the "what-if's" or "how are you going to over come this or that's" posted on this thread thus far BEFORE I made this decision. I have also contemplated and/or attempted EVERY SINGLE suggestion other than quitting my W-2 job and starting a wholesaling business. It's the next chapter of my book. It's not your book so don't worry if the pages get a little wrinkled, wet, or ripped out. I've got more paper at the ready.

Right now, can I answer exactly how I WILL overcome or what I will actually do or how I will actually perform? NOPE! YOU WIN!! OK, YOU WIN! No, I cannot answer these questions, because I HAVE NOT done it yet. So what point are you trying to make? I already addressed this in my initial post. What I'm doing GOES AGAINST ALL CONVENTIONAL ADVICE AND WISDOM. I am already well aware of that fact. I am also fully aware I might fail at this. Ok, so I go back to a W-2 job and try something else. So what? I have a goal and I'm going after it. I'd rather fail at something like this than go on being miserable knowing I never really tried. So, what really is your point?

I have ideas and strategies I plan to execute. Who knows what will work? What I do know is what I have been doing with my life is/was NOT working for ME. So for ME this is what I'm doing. Now go back to your ivory towers so I can begin building the foundation of mine. ;)

And with that I'm outtie! See ya on the flippity flip!

Originally posted by @Jerryll Noorden :
Originally posted by Account Closed:

would you live in a triplex that wasnt yours with an active demo n reno going on?

 you are creeping me out dude. I don't want to play no more..

That's the best comment I have heard and laughed about..haahha :D :D

Hi , I too am new to wholesaling and although I’m starting part time ! I am too hopeful of the future in this industry ! I see a lot of negative opinion so on this post like WOW give the girl a chance. I rooting for you hunn, you can do it. 

@Melanie Hartmann , wishing you all the best. You are truly believing in getting out of rat race here. But from I have heard from so many BP podcast, Wholesaling is more of a job than investing. You have to keep doing it day in and day out. I would say at some point you will want to move out of it & start investing when you have enough dough to buy some investment properties. 

@Robert Schumacher This is a tremendously balanced post! I am still working my 6 figure job to start my own real estate investing business to replace my job. I’m learning that it’s way easier being an employee than a business owner...if my business is going to be successful it’s because I put the effort into it! Many of the things mentioned are necessary beyond just having an “all in” attitude...which is also necessary in my opinion. Have a plan, set goals, establish a system, get a coach/mentor, hustle, and be resilient! You will have bad days but if you had a good reason for stepping out then you won’t quit! On a personal note, I am also a pastor of a “mission” church that I started with just my wife and kids. It’s very similar to a business startup. I started with BIG ideas and dreams knowing it’s what was called to do but this isn’t a mega church overnight situation...one day at a time, one person at a time, one service at a time I’m going to get there! A lot of ups and downs but I always remember what my purpose is and it keeps me going! If you don’t start with a powerful reason WHY you’re not going to find the motivation and drive to see it come to fruition. So, quit your job or hang on? That’s your decision to make but remember you better have a reason WHY and then get to WORK! My 2 cents from the cheap seats. AM

All I have to offer is good luck. On paper 1-2 deals a month sounds good, but I am on a lot of wholesaler lists in my area and only the one large company even comes close to sending me 1-2 a month (they usually get 3-5 at a time and then go months without any). Most only send one every few months. Don't take the negativity personally (no one knows you), it is just the amount of posters who come in here swinging to be wholesalers and probably 75% or more never return again. Try and be he exception to that rule.

"May the odds be forever in your favor." 

Knowing full well they are not. For me, they NEVER have been. If you knew my background and upbringing you would never have guessed I would have gotten to where I am. 

I bought my first house about a week before turning 23 (with no financial help from "mommy and daddy"). In fact I helped my mom purchase her FIRST house just 2 years before I purchased mine. My realtor treated me like a child the whole time. Never used her again. Oh and I was fired from that "good" job I had for 2 years, just 3 months after buying that house. Still have that house with no financial help from anyone but myself (and unemployment).

I had a ~10% chance of getting into the (only) grad program I applied to. Out of the ~14 who made it in with my cohort, 3-4 didn't complete it. They also told me later on that they "took a chance on me." They didn't really believe I'd make it either... Ha!

I worked a full-time job, a part-time job, and had a house, and a toddler all while going to grad school full-time and then some. I have a master's plus. No more formal school for me. I don't want that. People often ask if I'm going to go for a Ph.D. No, thank, you! 

Against all conventional advise and wisdom, I only applied to one undergrad school, one grad program, and one district to work for. I also "took a break" after high school and after undergrad (having an unplanned pregnancy during) and STILL went back to finish both. In fact, I worked part-time and finished my undergrad in THREE (not 4 or 5) years, with honors no less. "They" said NONE of that could be done. Y'all be tripping!

When I set my sights on something, I don't waste time on things I don't want, and I. GET. IT. DONE!

Thank you. You're welcome. Good day!

Originally posted by @Adrien S. :

@Melanie Hartmann  

I quit my job January 2016 to wholesale full time. I did 3 small deals in the fall of 2015 and had a small list of 250 absentee owners I was mailing. My goal was to do 12 deals at $10K each in 2016. I figured if i worked super hard, networked a ton, and educated myself, i could get it done. I had insurance residuals coming in so i wasn't worried about my income for 5-6 months. I busted my A and did 6 deals for $30K in the first quarter. It was tough and i second guessed my decision several times. I fought through it, networked more, got more experience, etc. I finished the 3rd quarter at 20 deals and $200K. I partnered with another wholesaler and over the last 7 quarters, we've put systems in place, hired people, and run a legitimate business. We'll do about 85-90 deals this year (mostly wholesales but some flips and keeping some rentals). We use a ton of private money (@Jay Hinrichs- want to chat?) and close on all our deals. Our buyer's list is gold to us. We take care of them by doing events and hosting the biggest baddest investor meet up in my area. Our buyers get great deals and keep coming back. We'll top $1.5M this year and it's the toughest market to find deals I've seen. 

So my advice to you: ignore the negative people here, set a goal and a big why to go with the goal, and go get it done. Work past when you want to quit and don't stop learning. Joining a mastermind was the best $15K i ever spent. Good luck. 

 I have funded deals in crown point and other areas there.. I ran into either your partner or a competitor at a mastermind last month.. 

And Sharad Mehta and I have done deals there I am sure you have sold him property... always looking for a good vendor.. 

I truly wish you good luck and I hope it works out for you. I suspect you'll end up looking back on this time later in life as a "Hey, I wish I hadn't done that" moment. We all have them - against all ration and sound advice we do something that turns out to be completely stupid. My thoughts:

1. Building a network takes time. If you are moving in 6 months or so, I would be surprised if you complete any wholesaling deals. It's not impossible but you would likely have to double the amount of time you were spending on your conventional job. Since you'll be taking care of kids at the same time, which is a job itself, I suspect you'll have far less time than you think to build your network and find deals - and that will all be virtually for naught anyway, since wholesaling really tends to be 'boots on the ground', i.e. you're not going to successfully wholesale in Maryland from Colorado.

2. I can sense your frustration and hostility (at this point, anyway) towards the 'naysayers', but you should really be thanking them. Yes, a lot of this 'advice' is after the fact - you've already quit - but I don't really see a lot of negative Nancys, I see a lot of realistic people who are telling you that (successful) wholesaling is not the stay with the kids, make a ton of money for half the hours fantasy that many people like to believe. 

3. What happens if you don't relocate?

If you want to wholesale, and think you can make a good living at it, good for you. Some people do. The vast majority - probably more than in any other facet of RE - fail. They spend a lot of money on letters and bandit signs and driving for dollars and taking people out for lunches and have nothing to show for it at the end except a pile of credit card bills. Wholesaling is a job - it is not RE investing. What you have done is traded a set hours, paying job with some benefits for a no set hours, no base pay job that will require expenditures. You talk about buying materials and paying for commuting, but you are discounting the costs you will have trying to build a wholesaling 'business'. If you average 10k per deal, which is probably high, after costs and taxes you are going to have to average one deal per month. You discount the money you paid into your pension, but not only is that your savings (i.e. it's your money, if you never collect you can just withdraw it), if this doesn't work out and you go back to work somewhere else it's part of your time in service. 

Anyway, I'm sure you're tired of hearing lectures at this point so I'll stop. I really hope it works out for you, and if it does you should come back on here and tell us all to pound sand :)  If it doesn't, however, you should also come back here and ask what's the best way to prepare crow!

Wow. I left a six-figure job in LA with about 6 months of money in the bank and working spouse and did just great. It wasn't wholesaling but there was still some reinventing to do. @Melanie Hartmann , you will do fine and your backup plan (your industry is in high demand) covers any miscalculations or shortcomings.

@Melanie Hartmann you've spent considerable time telling us about how the odds were against you and how the what you left behind wasn't worth it... 

Let's get to good parts, more like what you expect to get out of the new career. I only mentioned flipping/realtor because those both typically are seen as a step up from wholesale... and by step up better returns/more growth. 

I get that your moving, but what I don't get is that flipping/realtor/wholesale all those require similar skill sets but typically the first two require more funds or more education.  But all 3 are generally location dependent, so not sure how you use it as excuse not to be a realtor, but wouldn't it have same impact on your wholesale career? 


I'll also be the first to admit, I don't wholesale so I was more looking to learn from you why that seemed like the choice vs proof you made the right choice. Like you said, it's your life to live, I was just curious why wholesaling, what the numbers looked like etc... figured they'd be pretty nice considering what you walked away from. 

@Melanie Hartmann

No need to defend yourself or your decision to leave your 9-5. If you feel that you have put systems in place to help you transition into this career then good for you. Most people don't have the guts to do what you have done. Everyone's entry in RE is not the same. Sometimes brave decisions looks foolish to people who don't understand. 

Good job and I hope it works out for you.

Originally posted by @Candace Ellison :

@Melanie Hartmann

No need to defend yourself or your decision to leave your 9-5. If you feel that you have put systems in place to help you transition into this career then good for you. Most people don't have the guts to do what you have done. Everyone's entry in RE is not the same. Sometimes brave decisions looks foolish to people who don't understand. 

Good job and I hope it works out for you.

Exactly Candace! I'm definitely done attempting to defend my decision now. Why do I have to to detail out every little nitty gritty thing that I am going to do? I mean, I didn't think it was necessary to state things like, "I do not plan to be home alone all day with children and do this business"... what?!? I did have a "day job" before this right? I know how daycare/babysitting works, bwahahaha! I'm not asking anyone here for a business loan... why does anyone care to nitpick every little detail? I'm done with it... I've got a business to run. I don't have time for these shenanigans!

Im not saying wholesaling is easy. I will say, I’ve inadvertently wholesaled two deals from leads generated by my mailer campaign- intended to be deals for me to buy. 

I might have a benefit of being in a good midwestern market that people from zip codes starting with a 9 love... but I do think some people make wholesaling out to be way harder than it is.... that being said, I have a good full time job, and 6 rental properties, so I can see where having no income could make things difficult if you’re relying on your income from wholesaling. 

I’d suggest focus on a very specific area that you can learn better than some guy sending out 40,000 letter a month.... I get them, people who have sold to me get them.... they get thrown away. I hand write mine.... slow.... but I get about 9% call back. I put them in pretty envelopes and play off the excitement someone may have for opening up a birthday card or invitation or some kind. 

There are a million different strategies... you can make it an art or a science.... either way, good luck and I hope to hear more about your path. 

Cheers, 

Jake 

Originally posted by @Jerryll Noorden :
Originally posted by @Melanie Hartmann:

Hi All! I had to share. Against all conventional advice and wisdom, I've just quit my job. My fiance's job brings enough for us to cover are needed expenses and I have about a year's worth of savings built up on top of that. I have not done any deals yet but am planning to get into wholesaling ASAP. Just wanted to share. I'm going all in!

 I am in the USA alone. No family, no nothing.

I quit my job too but unlike you, I had no Boyfriend that provided some money. (no girlfriend even, not even a dog, heck or a goldfish).

You know what that did???

It made me step UP! It was do or die.

OK check this out... I made up a saying some time ago.. ad it goes something like this.

A cornered mouse will grow teeth!

HOW awesome i that saying!! Well... maybe not so awesome as a mouse already has teeth.. wait wait wait..

How about this...

A cornered mouse will grow fangs!

YEAHHH much better.

What this means ... is that when you have nowhere to go and are in trouble and it is do or die.. believe me, your mindset changes and you will become superwoman!

And to the dude that said.. "how does a job prevent you from doing this".. 

ARE

YOU

KIDDING!!!

the REASON I outperform.. well everyone in my market when it comes to SEO is because I devote 100% of my time on it. A deal falls my way I am in my car on the way within an hour! (at least I used to back i the day)..

Dude.. doing this full time gives you WAAAAYYY better chances to become successful!

Remember that saying.. you don't have to outrun the lion.. just outrun your friend?

You need to be better than your competitor. IN EVERY WAY..

work harder, work longer, work smarter work  more efficiently...

Good for you. Just don't get comfy with his incoming paycheck, and kill it!

“If you want to take the island, burn the boats”

Alexander the Great, who created an empire that stretched from his home in Macedonia to India, ostentatiously burned his ships when arriving in Persia in 334BC. As his few thousand troops were facing a few hundred thousand of the enemy, one of his commanders asked, “How will we get home?” to which Alexander replied laconically, “We’ll use their ships.”

In Asia there was Chinese general, Xiang Yu, who ordered his troops across the river and quietly burned the bridge behind them, a tactic that got the boys so motivated that they beat the mighty Qin at the Battle of Julu in 207BC.

Julius Ceasar, the Ancient Roman who wrote long letters home so that everyone would know about his incredibly wonderful victories...

So, decide what you want to do. Start doing it. And burn everything else that you see as a potential crutch. Make no mistake. That's not a crutch that will enable you to hobble to success. It will only make you want to hobble, when all the time you could have run...sprinted to success!

Oh I didn't realize this was a facebook post where you make an announcement and we all just say congrats, my bad.

I thought this was where talk details and learn from each other... silly me.

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