Has anyone told you lately that wholesaling houses is easy money? They weren’t lying. It IS easy money. What they didn’t tell you is that it’s easy once you learn and understand what the entire concept of real estate wholesaling houses even means.
Being on the inside of the business for the last 20+ years, it’s hard for me to fathom what it’s like to be a brand new person who has just discovered the potential that wholesaling houses have. Everyone out there makes it seems really simple to get started, to close deals, and to cash checks.
But the truth is, it’s not easy for ANYONE. Real Estate Wholesaling is like learning a new trade. It takes time and training before you fully understand what you’re doing, and before you’re actually doing it RIGHT.
By right I mean, ethically, legally, and consistently. Something that is sustainable. I see people by the droves who are jumping into the business right now and basically have no idea what they’re doing. They’re listening to some dumb ass give them advice, and then the next thing you know, they’re out there portraying themselves as professionals and using phrases that make them look really dumb.
Don’t be that guy. When you get a chance, check out the 3 Lessons of Real Estate Wholesaling.
HELL NO! Of course, it isn’t. If it were, then everyone would do it because once you learn it and understand it, then it’s the easiest money you can make in real estate.
I wrote a blog post about my biggest assignment fee ever from wholesaling houses. Check it out when you get a chance and you’ll see why i say it’s easy money.
So what DOES it take to get into the real estate wholesaling business? To make money, close deals, and be able to sustain this type of lifestyle for years and years?
I know you hear this all the time, but until you experience this for yourself, you won’t know what I’m talking about. I’ll try to explain. If you’ve heard that you can make a quick $5,000 wholesaling houses, and now you’re on a mission to get your first giant paycheck and quit your job, then you’re in for a giant disappointment.
That would be an excellent example of the wrong mind set.
Should you have some desire to make more money and work for yourself? Of course! And that might be enough to give you the surge you need to start researching the topic and doing a quick marketing campaign.
Will it be enough to sustain you for many years? Through the changes in the real estate market? Can you survive the dry spells? Have you heard about all of the bad things about running your own business that no one talks about?
So how do you adjust your mindset to one that is permanent and will help you think more rationally?
The answer to this is simple. Time and circumstances will weed out the people who get into this business just to make a quick dollar. The rest, which ends up being about 5% of everyone who gets in, will rise to the top. Those are the ones that have a mature mindset and have accepted the fact that wholesaling houses is a real business.
When I first started out in 1998, I was so clueless. I had no idea what I was venturing into, but I was determined to find a way to work for myself and make money. Making a boatload of money wasn’t my objective. I just couldn’t tolerate the thought of having a boss my whole life. So my mindset was one of rebellion.
When I discovered real estate wholesaling, I just took the bulls by the horn and followed the instructions that I read about in the 3 ring binder course that I was reading. I didn’t even know if it would really work, but I was willing to try it. Mind you, I had tried numerous other “work from home” programs that didn’t pan out at all. So this was just another attempt to succeed.
Once I got validation that I Could make money wholesaling houses, I was full speed ahead. I never considered doing anything else.
I didn’t realize back then that I was in the infancy stages of running my own real estate company. Maybe I was too young ( I was 25 at the time). But over the years, I’ve grown and definitely learned that this is serious business. If I don’t treat it like a business, then it certainly doesn’t behave like one.
Over the years I’ve learned (and matured) to understand what it really takes to keep this business running.
How to Wholesale Real Estate Long Term
If there’s one thing that should ring true as to what it takes to be successful as a real estate wholesaler, it’s consistency. Most people start a plan and then give up too quickly when they don’t see results.
Be patient and allow at least 6-9 months before you start to see any fruits from your garden.
Implementing new marketing campaigns, new technology, new team members, new systems.
Whaaa? Does this business take money? You betchya it does. If anyone tells you that you can do this without money – as in, you’re broke and can’t afford to pay the light bill, then they are flat out LYING to you. It does take money to run this business.
What they mean is that you don’t need cash to BUY the houses. You do need money to fund marketing campaigns that will generate these types of leads. Are there ways to generate these leads for free? Of course, there are. You can drive yourself bonkers on Craigslist, driving for dollars, or cold calling. And if you’re just starting out and low on funds, then these methods are great to use while you have the drive and willingness to do it. But they’re not sustainable.
No one in their right mind, ESPECIALLY a smart business owner would spend their days driving around knocking on people’s doors. I would never teach anyone to do that. Time is money, and both are valuable. Focus on doing things that are going to bring ROI for your time AND your money.
The truth isn’t always what people like to hear, but I get frustrated at times when I see people out there saying things like “I want to make $5,000 in 30 days or less because I really need to buy my kid some clothes for school”. That type of statement tells me that you’re wholesaling houses for the money, and you really have no desire to build a business for yourself.
If you’re looking for quick cash, then try this: go to a garage sale, find something nice really cheap, negotiate an even better price, and then go home and list it on eBay for a profit. That’s more of a business model that can be “on-again, off again” when you need a quick dollar and you can see results instantly. It doesn’t take a lot of thought, and you can even ride a beach cruise around your neighborhood on Saturday to find some treasures.
If you’re looking to start a business of real estate wholesaling, then educate yourself on how to do that. Execute a plan. Stay consistent. Then Reap the rewards year after year.