Is My Virtual Wholesaling Plan Viable

8 Replies

Hi BP community,

I am looking for some guidance/feedback on my wholesaling plan. Any and all advice is appreciated. 

For some background, I am 25 (M) and I will have $25k saved up by the end of January, 2020, from my sales career. My plan was to switch industries, because I am unfulfilled at my current employer/industry and I wanted to get into selling large scale solar projects to large apartment complexes and businesses because I have a strong interest in sustainability/renewable industry. I already booked a two-month trip to Thailand where I planned to scratch my traveling itch while learning more and networking within the solar industry. Then, I realized, that this could alternatively be a great time to launch my real estate investing career, which I have been learning a ton about over the last year. 

With the $25K, I could purchase about $1-2K worth of leads from List Source, and also cover the following expenses for at least 6 months:

1. $500 / month for family and friends in Michigan to find, skiptrace and send mail to leads using Deal Machine

2. $250 / month for new leads from List Source

3. $250 / month for CRM, phone system and other necessary tools to run the business as a business

4. $500 / month for one full-time VA from the Philippines 

5. $1,500 / month for other personal living expenses

TOTAL: $3K / month

I understand that this business will not take off overnight, even with investing in a VA and the proper tools, but if I am going to launch this business, I would like to give myself the best chance possible at success. I am willing to make money sporadically and work hard to make this work. My concerns are that launching the business from Thailand may not be the best approach, because it would mean relying on the VA to perform quite a bit of cold calling to sellers while I am asleep. Here is how the schedule work work while I would be in Thailand (12-hour time difference):

9am-10am EST: I would be training and speaking live with VA on important follow-ups

10am-5pm EST: VA would be working for me, using the CRM to make and receive calls and texts, leaving notes and assigning me follow-up tasks within the CRM

5pm-8pm EST: I would be calling leads and performing follow-up tasks assigned by VA

8pm-5am EST: I would be able to do tasks that are less time-sensitive, like building buyers list and developing other parts of business

After the trip ends a the end of March, I would return to the US and a more conventional schedule. I am just worried about relying so heavily on a VA this early on and beginning the company completely virtually.

Thanks for your feedback,

Rick

My biggest concern is what happens if a lead pans out. "I think it's worth 75K and I'll take that for it". How are you going to see what you are bidding on? Is it worth it or is it worth 30K in it's condition, perhaps 160K. You can't go get in front of them.

Good point Mike! My family is based in Michigan, and my mother is a stay-at-home grandmother, who is supportive of my goals and knowledgeable about rehabs, in her own right. She would be available if you think this is a vital part of the plan. Alternatively, I was hoping to rely on photographs and aggressive negotiations. And perhaps partnerships with local investors. 

Earlier this year, I interviewed and was offered a position with a local wholesaling company as an acquisitions agent. During the interview I had to show that I understood the calling process and how to dig into the details about the rehab costs. Unfortunately they wanted to pay me only 5% of the profits, so I passed on that opportunity.

Definitely launch the business when you're not on vacation! Enjoy the vacation. Then launch your business when it can get your full attention. My $0.02

I'll be honest with you:
it sounds like you're attempting to dive into two separate business at the same time (selling solar panels & wholesaling houses).

This is a huge entrepreneurial no-no.

If you're going to get into a new business, your attention should NOT be divided.

That being said, if you've $25k to spend, the best thing to do with it, is nothing.

Not completely nothing, but spend it on ListSource and Skip Tracing.

It's your business, you need to lean into it.

Take the list and cold call it.

Talk to homeowners, get comfortable being uncomfortable.

You need to make offers and fail forward.

After you've a deal or two under your belt, I'd recommend hiring and training (local) Americans to cold call for you.

You'll get no greater ROI than this :)

As @David Lecko said, enjoy your trip and hit the ground running once you're back on US soil!

@Rick Sheldon

Don’t scale a business you don’t have, it makes no sense. Don’t spend your vacation working on something like this, that also makes no sense. I agree with what others have said, you don’t need all this stuff. Learn the biz with your own free time doing things manually. Focus on getting deals. Once you’ve got a bunch of deals done then scale.

Hi @Rick Sheldon  On the solar side, I changed my business model around so that I could do precisely what you are looking to do. As an example this year I spent three months in the Galapagos and Ecuador with my family and still sold 8 solar projects in the US from there. My main focus is residential solar and absolutely love the "life by design" way of working. I'd be happy to have a phone conversation if you'd like as there might also be some synergy if I need an outlet for commercial and vice versa. I'll send you a connection request.

This is my biggest concern - "My family is based in Michigan, and my mother is a stay-at-home grandmother, who is supportive of my goals and knowledgeable about rehabs, in her own right. She would be available if you think this is a vital part of the plan. Alternatively, I was hoping to rely on photographs and aggressive negotiations. And perhaps partnerships with local investors."

Any plan to wholesale involves meeting with homeowners, getting a contract signed, and then assigning that contract. You can't do any of that virtually and you can't send your mother in to do it all if she does not have experience and due to safety concerns.

Photographs and aggressive negotiation is not a business strategy, it's a one-way ticket to losing money deal after deal. If you use ListSource to generate leads and you put into place the structure, which is good by the way (just too early), you will need someone to be running comps and a ground team.

As everyone said, you don't need to do this from afar. You actually have a fairly well thought out plan if you were going to be on-site doing it yourself. It seems like you are rushing to crush it in two businesses before even making one work well.

Originally posted by @Lee Ripma :

@Rick Sheldon

Don’t scale a business you don’t have, it makes no sense. Don’t spend your vacation working on something like this, that also makes no sense. I agree with what others have said, you don’t need all this stuff. Learn the biz with your own free time doing things manually. Focus on getting deals. Once you’ve got a bunch of deals done then scale.

 I have developed a very successful strategy that scales a business when you do not have one yet.

You absolutely CAN and SHOULD scale your business, from the start, at least with he right strategies!

Just do a Google search for "The Forced Traffic & Conversion Strategy"