When you feel like giving up?

14 Replies

Hey guys. Need your help here. I'm 22, and have been doing a little bit of wholesaling. I got my realtor license back in November, decided it wasn't for me in March after I got my first 2 wholesale deals. I closed both of them, I currently own 13 rental doors, and am flipping 2 houses. However, I find myself in a place where I'm wondering if I'm wasting my time with wholesaling. I spend a lot of time cold-calling, however, I feel like I'm not getting many deals. I'm about to have another one under contract to wholesale which I may make 5k on.

My long-term play is to generate income through a business, multiply the income by flipping a house or 2, then buy another rental with it. I just feel stuck and like I'm spinning my tires. How do you guys cope with this? Am I better off starting another business venture to generate income, or is wholesaling actually a profitable business model? I have virtually no overhead besides skiptracing and my mojo dialer.

@Chris Gavre

You are not spinning your wheels; you’re actually doing amazingly well! I think the problem is that your of an age where people expect instant results. And sometimes it’s attainable. But often patience, persistence and follow through lead to a lasting success.

Now, specifically, wholesaling relatively low profit properties may not be the best use of your time. There are a number of solutions to this problem

1. Wholesale higher end properties with greater spreads between purchase contract price and flip price

2. Wholesale commercial real estate

3. Automate your wholesaling process by using a combination of technology, virtual assistants, and contractors to do the repetitive tasks

4. Move away from wholesaling all together, and concentrate on a more lucrative aspect of real estate, where your expertise can still be put to good use, such as

A. Syndication

B. Crowd Funding

C. Commercial property investment

D. Non performing bank notes

E. Portfolio of STRs

F. REITs

G. Niche Real Estate - Cell Towers, RV parks, Storage, Parking lots,

F. Build to Suit for Service Franchisees

And many more areas of real property I haven’t mentioned

@Chris Gavre I would say that 99% of wholesalers are horrible at what they do. They lack follow through or misrepresent their intent.  If you are the 1%, then keep doing it. 

You are killing it! I'd just track your calls/data so you can see what to tweak. As Joe said follow up is key. If you want to grow flipping then I'd look into partnering and leveraging your experience/work ethic

You've already experienced success with wholesaling. It is very tough to do which is why the majority of wholesalers fail without making a penny. Keep improving your wholesaling and continue to borrow what other successful wholesalers are doing. 

We're in a hot market so no doubt it's tougher but if you ride it out you'll be ballin' (much like the most successful realtors I know who hustled both during and after the financial crisis as other realtors were quitting left and right and those who stuck with it now have the track record, connections and a solid, well-known reputation to wildly succeed). 

@Chris Gavre find a way to get your wholesaling business automated. Do you have a website? Yellow letters? Direct marketing? Other people to help? Seems like you are getting tired of spending so much time trying to land a deal than actually closing. If you can find a way to minimize the amount of time you spend, that will free you up for other ventures. There was an episode on Real Estate Rookie where a Wholesaler found a personal assistant, taught her how to do her job, and bam! Instant free time, and scaled her business.

@Chris Gavre you're looking at it the wrong way, the greatest thing about being a wholesaler is having the first pick on Off-market properties, you need to keep advertising to distressed homeowners, cherry-pick the deals you want to flip or hold as a rental, and wholesale the rest of it. It's all part of the same business and wholesaling is just the front door. 

If you don't enjoy Coldcalling, hire a VA and start to systemize this business.

Sometimes you just hit a plateau, you just need to be consistent, keep pushing and eventually, it will all pay off!

Ps: If you own 13 doors at 22yrs old you're probably doing something right so don't give up ;)

Thank you everyone for all of the love. Seemed like I was getting too caught up in not getting more instantaneous results. Sounds like I need to just power through and keep on making the calls. Thanks for screwing my head back on straight!

@Yoann Dorat Thanks for the insight. Question for you about wholesaling, I'm hung up on a couple of details.

1. Are you submitting offers before seeing the property? If so, how do you then transition into going to see the property in person?

2. In regards to seeing the property, how do you do this when there's tenants involved? I've recently run into a lot of resistance with people because I'm trying to get in and see the house before locking it up under contract, however, when there's tenants in the property the homeowner seems to be very hesitant. I think some of this comes down to it seems like there's a lot of hoops they have to jump through to get the property sold, and therefore, may seem less inclined to do so. AKA: they have to schedule the showing with tenants, get me inside, meet me out there, etc. 

@Chris Gavre great questions! 

1. In my company we're Wholesaling virtually in 3 states so yes we are locking up the houses under contract without seeing them, we run our numbers and our offers are contingent on a walkthrough/inspection. 60% of the time we obtain pictures/video from the seller. Once the contract is signed we send one of our runners to take a full set of pictures (usually about 50pics) of the property, and our dispo team decides if we want to move forward or not. This whole process usually takes 7 to 10days. 

2. We try to focus on vacant houses but when there's a tenant involved we don't want to disturb them unless we have a buyer lined up, so we usually market to our buyer list, and do 1 walkthrough with 2 or 3 selected buyers at once. 

Originally posted by @Joe Splitrock :

@Chris Gavre I would say that 99% of wholesalers are horrible at what they do. They lack follow through or misrepresent their intent.  If you are the 1%, then keep doing it. 

 You are a mod. You are expected to do better than this. Get it right.

It is not 99% It is 99.9999375% of the wholesalers do it wrong.

Get with it old man!

@Chris Gavre

I can tell you that in Yinzburgh, PA, there are 3-4 successful wholesalers (people who make the bulk of their income doing it). Perhaps the biggest general lie that real estate gurus sell at their seminars is that wholesaling is a good way to get into the real estate business if you have no money. It is emphatically NOT, at least where I live.

The knowledge you need to have of localities is incredibly. On those four guys I mentioned, one really does have something approaching a photographic memory -- I've seen it in action and it's barely believable.

All four guys have money out the ying-yang from other real estate ventures, solid portfolios of residential/commercial rentals, and all of them have residential flipping experience.

They have giant networks of people, contacts on contacts in the business stretching back decades.

Two of them have law enforcement investigative backgrounds, one is a former teacher, one used to work for the local government as a researcher. I only know this because I, for a brief time, also worked for the county government as a researcher.

They're all real estate animals, completely obsessed with the game, completely steeped in the life. They would laugh their heads off at the proposal that they could make passive real estate income on the side through wholesaling while carrying out their regular job in an unrelated field.

I have no idea how the gurus have managed to sell ordinary people this fantasy of "wholesaling on the side for fun and profit." Wish fulfillment, mind control, voodoo, don't know how it was done, and done so well.

Originally posted by @Jerryll Noorden :
Originally posted by @Joe Splitrock:

@Chris Gavre I would say that 99% of wholesalers are horrible at what they do. They lack follow through or misrepresent their intent.  If you are the 1%, then keep doing it. 

 You are a mod. You are expected to do better than this. Get it right.

It is not 99% It is 99.9999375% of the wholesalers do it wrong.

Get with it old man!

 

Haha, old man? Don't confuse my grumpiness for old age. Seriously I am fed up with hack wholesalers. I get text messages every day asking to sell my properties. I respond "sounds good lets talk" and they don't respond. One of them actually sent me more messages about the same property after I responded. I don't want to sell, but I am curious what they have to say and I want to be on their buyers list. Although I suspect they are not finding many deals if they don't even follow up on leads. Do people seriously just buy text lists, blast people and do nothing? 

Maybe these people are on BP. Joy are you out there? Call me about the Elder Drive property that you want to make a fair cash offer on...

Originally posted by @Joe Splitrock :
Originally posted by @Jerryll Noorden:
Originally posted by @Joe Splitrock:

@Chris Gavre I would say that 99% of wholesalers are horrible at what they do. They lack follow through or misrepresent their intent.  If you are the 1%, then keep doing it. 

 You are a mod. You are expected to do better than this. Get it right.

It is not 99% It is 99.9999375% of the wholesalers do it wrong.

Get with it old man!

 

Haha, old man? Don't confuse my grumpiness for old age. Seriously I am fed up with hack wholesalers. I get text messages every day asking to sell my properties. I respond "sounds good lets talk" and they don't respond. One of them actually sent me more messages about the same property after I responded. I don't want to sell, but I am curious what they have to say and I want to be on their buyers list. Although I suspect they are not finding many deals if they don't even follow up on leads. Do people seriously just buy text lists, blast people and do nothing? 

Maybe these people are on BP. Joy are you out there? Call me about the Elder Drive property that you want to make a fair cash offer on...

 crap man, I shouldn't say this because I also wholesale.

I am a wholesaler and I hate wholesalers. They make me hate myself. Gaaadamn it