Have you ever wondered is it REALLY possible to go full time as a real estate investor? Maybe you have been working your job for several years and with every day that goes by you despise it more and more. In fact the only reason you continue at the job is because you have NO other alternative.
In this article I will give you a quick overview on what it takes to quit your job and become a full time wholesaler. I believe that wholesaling real estate is the quickest way to go full time in the business. The reason is that wholesaling houses is the FASTEST way to but CASH in your pocket. If you are looking to kiss your boss good-bye, this method of real estate investing is the only way to do it. You can consider rehabbing houses but it will take a minimum of 4-6 months to put that check in the bank. When you wholesale houses, you can put money in the bank in a matter of weeks! We all know that we need CASH in the BANK NOW in order to pay our bills.
Step #1-Set a Realistic Goal- If you are thinking to yourself, “When will I ever be free from this rat race?” I understand exactly where you are coming from. I have attended many real estate seminars and boot camps and they all talk about the same thing-how to do real estate investing. What I wanted to know was how I could take it to the level in which I could go full time. At one particular seminar, I asked a well know guru, “How do I go full time and get rid of my job?” He looked at me and said “Just set a goal and do it.” I would suggest that if you can show a year of consistent income in the business than you are ready to make the jump.
Step#2- Identify and Implement your Marketing Strategy- In this business you MUST have a way to find a consistent stream of motivated sellers. If you have no leads than you will have no deals and if you have no deals you will have no cash! Very simple the way it works isn’t it? My #1 way to get MOTIVATED SELLERS to call me is direct mail. For example, if I send out 1,000 post cards I know that I will get a minimum of 60-100 calls. This is a scalable business and the only way to make your business predictable. This leads directly to the next step.
Step#3-Set a Marketing Budget-The key with this business is that you must make it predictable. You must be able to determine how many calls you are going to get a month which will turn into a certain amount of appointments. You then know that a certain amount of appointments will turn into a certain amount of deals. This all begins with a MARKETING BUDGET. A good starting point is $1500 if you really want to speed up the process.
Step#4-Meet with Sellers and Make Offers- One thing that you can be certain about in this business is that if you are not making offers than you are not making money. The key to getting CASH in your pocket quickly is that you must find a way to speak with as many motivated sellers in the shortest amount of time. If you are just starting out and are not sure what to offer, make sure that your offer is 65% of what properties are selling for minus repairs minus what you want to make on the deal. For example 150,000 X .65=97,500-30,000 in repairs=67,500-7,500 your profit=60,000 offer price. Make at least 60 offers in one month and you should have a deal.
Step#5-Establish a Follow up System- The reason why you need a follow up system is because we are making such low offers. Not every seller will accept your first offer. Learn to be OK with that. If you develop a follow-up system, I suggest direct mail, you will find that a lot of your offers may get accepted months down the road. This is great because now you are learning that wholesaling is a business and not a hobby. Ideally what will happen is that you will get better at making offers and you will get one or two accepted on the spot. You will also have one or two follow up offers in the works and now you have 2-4 deals on your hands with an average profit of 5,000 a month. That is anywhere from 10-20K EVERY month. At this point, you are FREE.
Step#6- Assign to your Buyers- This is the final step and the best step! As you get good at this business you will develop a network of buyers. Eventually you will get to the point where you have a network of 3-5 close buyers that enables you to sell your deals within MINUTES! This will develop great confidence in you because you know EXACTLY what your buyers are looking for and all you have to do is bring it to them.