January 3, 2025


Some people never really reached their full potential. And, you know, I'm always striving for that to because I know I can do more, do better. But a lot of people never leave the corporate world because they have that security of a job when reality is they're trading their time for money, whereas they can never, never really get ahead. I don't care if you even make, you know, $500,000 a year. I guarantee that a successful real estate entrepreneur is worth way more than that person makes any year, even if they only make, uh, you know, 200,000 a year. 

January 2, 2025


And that's really the difference. I can make a million a year in wholesaling. He can make a million a year to his job. But I've got 25 rentals as backup for long term wealth. That will always pay me forever and ever and ever. So I could stop wholesaling today and live free forever. This guy lives is a job today, and he's screwed till he gets another job, and he probably won't find a job to replace that kind of income for a while. 

January 1, 2025


So I was in it for like 6800 or so with closing costs, paying both sides and all that kind of stuff. And then I actually did, um, all the remodel I negotiated super cheap with the guy, of course. Keep in mind he did the roof, so he tore off the old roof because it had a couple of layers, did a new roof, painted the entire exterior and the entire interior, completely redid all the flooring. Did the new tub surround in the bathroom replace that sheetrock in the in the living room on the ceiling? Um, he did all of that and mowed the property over these, uh, three months that it took him to do this. Of course, I could have did this faster, but I wasn't in a hurry. I didn't really care. Holding costs aren't very much. Uh, the insurance is, like 60 bucks, and the, um, I think the utilities end up being, you know, under $100 a month. So, sure, I could have got done faster by paying somebody a little bit more, but I paid the guy, um, $2,200 for labor for all of this. And it took them two and a half months or so. Um, and then the materials were obviously more than that. So I'm all in on this property for just under $12,500. 

December 31, 2024


Okay. So let's get into it. All right, guys, so this is the house right here. Now this property is in Lawton, Oklahoma. So it's actually a town that I grew up in. So I know the town like the back of my hand. Uh, and, uh, you know, this isn't like this. The nicest area in town, but it's not the super ghetto either. So, um, you know, it's a decent little area that many people wouldn't mind living in. So anyways, this is the house. Obviously. It's our perfect wholesale house that we look forward to. Stressed house, uh, with the, uh, torn up, uh, you know, trim around the roof and the roof is bad. You know, the whole siding, all of it. 

December 30, 2024


So today's video I'm going to show you how I got this super low end rental. Uh, it was too good to pass up into wholesale off, so I kept it myself. We put a little bit of work into it, and now we do everything on rent to own to where I actually keep the date. Basically it's a contract for deed, so I will keep the deed in my name. But now I've got a tenant buyer that will end up, you know, taking care of the property and living there and renting it until they own it. So I typically do that over a set amount of time and a certain interest rate. So anyways, let's get into the video. So I'm gonna actually share my screen with you and kind of show you some before pictures and walk you through the whole process of what we did, how we did it, and where we got it and all those kind of things.
 

December 29, 2024


For a low end rental. So here's the numbers on it. I actually bought the property for 5000, but with closing costs, and I paid part of the probate that had to be done. Like this took a year process just to get closed because of probate and everything else that had to happen. And actually we ended up yeah, it was probate. They had a lot of errors, is what it was. That's why it took so long. But anyways, so I bought it for 5000 with closing costs, and I just paid part of the probate just to help them because they needed a little bit more money. Um, so that I could pay 5000 because I wanted to pay 3500, which is what we agreed to originally, but I paid 5000 plus closing everything. So I was in it for like 6800 or so with closing costs, paying both sides and all that kind of stuff.
 

December 28, 2024


Let's just say, for example, you've got a couple of deals under contract. And as you know, if you've been in this business for a while or if you're brand new and you don't know, uh, deals are going to fall out that you cannot control. Okay. Uh, it's not always about getting the deepest discount with the seller. It's not always about can you find a buyer or not? Um, it all really stems from is there a clean title on the property? And you don't really know those things until you get the deal, and it's in escrow with the title company.
 

December 27, 2024


And that's why it's important, you know, to kind of have a team once you get going. But if you're a one man show, that's no problem. You know, I did this. Everybody starts as a one man show. Um, but my first several months, I was just by myself. I worked a lot, but I was really organized, and I stayed on top of things. So that's the main thing. You want to stay. Stay organized. So if you've got 100 leads even and you've got maybe you're talking to ten of those that are really good potential and you've got two under contract. They both fall through, but you still got those other eight that have really good potential. So you got to talk to those, you know, follow up with those people all the time.
 

December 26, 2024


Okay, so you can't count on for that same example I was, I was going towards, uh, you got two deals in escrow right now. One of them, you got a potential $15,000 payday coming because you've already got it assigned to a to an end buyer. And the other one. Maybe you're actively searching for a buyer, but nevertheless, your lead flow can't stop. Because what happens if this $15,000 deal doesn't close because there's too many tidal issues and you can't get them worked out? And then what happens if this other deal you just can't find a buyer because maybe you locked it up too high. Maybe it's in an area that no buyers really want. Um, you know, maybe it's reasons that you still can't control fully, but it's not tidal issues.
 

December 25, 2024


Whatever leads that you have, you got to you know, you got to keep following up with those two on a weekly or bi weekly or monthly basis at a minimum. Right? So the point is, have a good pipeline. That's just sales one on one in general. Um, your pipeline is really everything. Um, but it all starts with marketing. If you've got consistent marketing going out, then you're going to have a lot of leads coming in which the leads are your pipeline. Okay. So keep your pipeline really full so that when those sucky days come, you know, it doesn't affect you as much.
 

December 24, 2024


Exactly what I said at the beginning, you know, are you having trouble actually getting a check every single month? Or maybe you're just completely brand new to wholesaling and you want to learn more? Okay, so here's what it is. In my opinion, when you're not, uh, getting consistent checks, obviously everything that we do, you have to be consistent, okay. You have to have, uh, consistent action in income producing activities every single day. If you want to be successful in this business, at least if you want to make consistent paychecks month after month. Okay. Um, but the biggest issue that I see most people make, and luckily, because I have a sales and marketing background, I never fell into this, uh, trap, if you will. Um, but if you want consistent paychecks every single month, you got to keep your pipeline full.
 

December 23, 2024


So that's the trap people can fall into. You're like, okay, I got this deal. I found a great deal with the seller. I already found a buyer, and I've got a design. I'm going to make $15,000. This stuff happens to us all the day, all the time, by the way. Which is why I'm telling you this. So you've got this $15,000 payday coming and you're anticipating that. But a lot of times you stop the activities that you were doing to get you that $15,000 potential payday. And now that's one thing to it's always a potential payday until you actually have either the check in hand or the wire in your bank.
 

December 22, 2024


So what does that mean? So your pipeline obviously is is your leads. It's a consistent lead flow coming into your business every single day or every single week and every single month. Okay. Because here's what happens. I've seen this happen to a lot of new wholesalers, um, that have that have always, you know, local people or, you know, people across the US, you know, they may have reached out to me and they've given me these kind of concerns or like, well, how do you how do you bring in these checks consistently? You know, they're always like, well, my issue is not selling. Uh, I'm pretty good at getting the deal or my issue is not finding the buyer. You know, I'm pretty good at finding a buyer or whatever, but I can't get consistent paychecks. And usually when you start breaking down, you know the reasons.
 

December 21, 2024


So what are we going to do? You know, we were hoping for this $12,000, but at the end of the day, it's not that big a deal. We've got other deals closing. We've got a $39,000 deal closing this week. Um, and another $15,000 deal closing this week. So, you know, it's not the end of the world. To lose the 12 is the whole point of this. That's why it's important. If you can have a good pipeline, these deals that you're losing that kind of go south on you are not as big of a deal. Yes. It's still sucks. There's no way to prevent that. Who wants to lose 12 K, right? Nobody. But you can't do anything about it. And at the end of the day, if you've got other money coming in, it doesn't hurt near as bad.
 

December 20, 2024


Okay. So don't be dependent on these potential deals. It looks promising. Yes. That's great. And you can definitely celebrate those wins, but it's not a full win until you actually have the money in hand. Okay. So staying consistent is definitely key in your advertising to keep bringing these leads in. But not only that, when you have the leads follow up like a boss all day, every day with these deals.
 

December 19, 2024


A lot of times it stems from just their lead flow. Uh, so doing consistent advertising is, is first thing that you have to do to get consistent lead flow. Um, but not only that, once you have those leads, you have to follow up like a boss, right? Follow up all day, every day with your leads. And if you don't have a lot of leads to follow up with, then you're going to have, um, that consistency issue as far as your paycheck goes. But when I'm talking about I have a full pipeline, I'm talking, you know, have lots and lots of leads in your pipeline ready to go that you can call on every single day.
leads coming so you can get contracts coming. So you can have consistent cash in your bank every single month.

December 18, 2024


That's why we typically have, you know, a big pipeline. We've got leads coming in all the time, deals coming in all the time, but they all don't close. That's just part of the game. So if you know that ahead of time, you know, do preventative maintenance, keep your pipeline full so you can keep those leads coming so you can get contracts coming. So you can have consistent cash in your bank every single month.

December 17, 2024


So that's the takeaway from this. Get good at having a, you know, a lot of leads in your pipeline. Follow up with those like crazy. So you always have a bunch of deals in escrow. Um, like I've mentioned in other videos, we typically have 15 to 20 deals in escrow at all times because not all of those deals are going to close. Some of them we have different time periods as far as inspection periods go and that kind of thing. But we hope to close, you know, 2 or 3 of those every single week. And usually that's what happens. That's why we typically have, you know, a big pipeline. 

December 16, 2024


So let's just say both of those two deals fall out. Well, you were counting on 15,000 at a minimum. And potentially you're hoping to maybe count on this other deal that in a depth, you know, go on array, you know, falling apart as well. So what do you do then. Then you're stuck. Right. But if you have a huge pipeline, you've got lots of leads that you're always talking to, doing consistent deals all the time, you know. Yeah. These this may sting when you lose at 15 $15. And it may suck when this when you can't really get this deal assigned. But at the same time, it's not the end of the day because you've other you've got other deals coming in because now you've got new contracts coming in, uh, that maybe you have potential with and you're still following up with other deals. 

December 15, 2024


And they'll pass those off to acquisitions to to disclose. So the lead manager will get, um, you know, 5% of the commission that acquisitions would have gotten and acquisitions won't get that because all they're literally going to do on those particular leads is just have to close them. That's the whole point of that. So anyways, we'll see how that goes. I'll keep you all updated on that. Uh, it's a new thing I'm testing out. A friend of mine does it. She does it a little bit different. Um, but she does a similar. But, um, you know, you always got to fit things to mold your particular business. Um, I definitely don't believe in, uh, reinventing the wheel. You know, everything that we do, we pretty much learn somewhere from someone, typically. Uh, and then you just kind of mold it to fit your business needs and how you want to run things. 

December 14, 2024


But anyways, um, so not to be a dead horse, but, um, we're moved past the other CRM we tried to switch to. So fully embracing Podio again. Still trying to get that setup the way you want it. I mean, it was already pretty good, but I don't know why, but I've never had like a phone system implemented like directly in my Podio. I've always used call reel, uh, and then call and things like that, but I've never had a click to call from Podio. Um, and I know people have been doing that for a while. I've just never had it. Uh, so we did implement that for sure. We've got smartphone, um, integrated into our Podio now, so that'll make it easier for acquisitions to make calls because used to the way we did it, acquisitions would actually call from call. 

December 12, 2024


But um, so we've got that working out And. We've got a, um. We've got a flip a just sold. It's actually a hotel. Basically, uh, we there's a house that we had sold a couple times on the retail market, um, without owning it. You know, we had it listed, and those deals fell through twice on closing day, so I ended up just buying it myself. Of course. Never took it off. Uh, it just got real muddy when it was listed, uh, because the seller was, was acting in real shady. And of course, the two buyers that we had both backed out the day of closing. So it was a long process. We had the deal for a long time. Uh, so I ended up closing on it myself, um, about a week and a half ago. And, you know, because I was confident it was a good it was a good deal still. So I actually ended up selling it, uh, just a couple of days later. 

December 11, 2024


Sure. My acquisition manager will get it. Um, so it was the same deal. Cash offer. But this time I was super, uh, made sure that my manager was super. Um, what do you call it? Detailed in the counteroffer. So this time, not only does it say, you know, it's a cash deal, as is where it is, but it also says, you know, it's 5000 non-refundable earnest money before it just said $5,000 earnest money close at our place. Of course, you know, this time, anyway, it should have been non-refundable anyways, but technicalities. So this time we spelled it out clear as day, and we also put in there. Um, seller cannot cancel this contract for any reason at all. So it's like it's it's dumb proof. You know what I mean? There's no way that they can cancel. 

December 10, 2024


So they have to close by the 20th. So everything's looking good so far. So anyways, but in the meantime, uh, I'm also hiring a new position, so I've got a new. I found a new acquisition manager. It's a it's a lady that I've been kind of talking to for several months, and we worked together in the past and the yellow page industry, and we were good friends, you know, work friends. Um, back then, she had awesome work ethic. She ended up going into management, did really good at that. And the last several years she's worked from home, um, on her computer from 8 a.m. to 6 p.m., you know, so even more so this is, like the perfect fit for her and me both, because, you know, we're 100% virtual. Our team is virtual. Everything about us is virtual. Um, so it's perfect. She's already used to working from home all day, every day, doing sales. Uh, the same type of sales I used to do. 

December 09, 2024


So anyways, that person's job will be cold calling all day long. Um, passing those off to acquisitions, because now I'll have two acquisitions again, thank goodness, because that's what I need. Um, so their job will be passing those to acquisitions. And then obviously if they tee it up, acquisitions is the one closing it. So their job is just going to be basically nurturing these leads, following up with these leads all day every day. Now don't get me wrong, my acquisition managers still have their cues to where. Um, like, for example, I have a hot leads queue, which basically all the leads that we think we will be able to get contracts on within the next 30 days, or it's a brand new leads coming in. Okay. But if it's a brand new lead, they have to actually move that into, you know, a different lead status right away. It can't just stay invalid is what we call them because we know it's a valid lead.

December 08, 2024


But also, I'm adding another position. Um, I'm not sure what to call it yet. It's a it's basically a lead manager, but they're mostly going to be following up because the main leads, uh, for example, most lead manager people that call them lead managers. Um, they handle all the leads and they pass them on to acquisition managers, you know, and things like that. They basically vet them to make sure that they're qualified leads. So I'm not going to do that. Exactly. I still want the hot brand new leads coming to acquisitions, because they have the best opportunity to close those deals, because they have the best skill set to do that. Um, but this position is more of a follow up person. Um, so I've got a friend that calls them follow a specialist, but they're kind of lead managers as well.

December 07, 2024


It came into our system because even to get into our system, you got to, uh, it's got to come through like directly from radio, uh, directly from a co caller that vets them out is not somebody that just raised their hand, but it's someone who actually wants to sell their property. Typically, um, even RVs that have to be they go through a little process before they even make it into our Podio. Same with SMS. Um, we've got people running the SMS to where they won't even send it into our Podio until it's actually qualified. So anyways, acquisition is going to have their fair share of follow up too, because they have a short term follow up that they're responsible for as well. 

December 06, 2024


There's no way that they can cancel. Period. So anyways, they signed it. We didn't think they would because I countered, obviously, uh, way higher because I counted like 30,000 higher than they offered because obviously they low balled and I was just hoping like, okay, well, you know, we'll meet somewhere in the middle after I first counter, but oh, we didn't have to. They accepted. So um, one making like 39,000 on that deal. Um, so that'll be awesome. I'll be out of it, you know, within 30 days because they had to close within ten actual days and not business days. Um, so they have to close by the 20th. So everything's looking good so far. 

December 05, 2024


So either way, that's the position I'm hiring. So what they're going to be doing is in my podio, I've got tons and tons of old leads, not tons, but, uh, you know, a few thousand old leads that we just kind of threw to the wayside, that we gave up on for whatever reason. Um, so their job is going to be actually getting on the dialer. So that's one cool thing that I added into my Podio smartphone has a dialer too, so they'd be getting on the dialer calling all those older leads. They weren't necessarily bad, they just didn't work at the time for whatever reason. Uh, so it could have been timing. Um, maybe they wanted retail, you know, um, retail back then if their number is still the same, could work today because the market is so hot, you never know. So anyways, that person's job will be cold calling all day long. 

December 04, 2024


So I actually ended up selling it, uh, just a couple of days later. Um, and so this time, you know, when you're doing on the MLS, you got to be super specific. So because every time we counter with someone on like a hotel deal, we counter as if it's like a wholesale, even though it's not okay. What I mean by that is we counter saying okay, property being sold as is. Where is, um, close of escrow within ten days. We're using our title company, um, seller, which is me. Seller will make no repairs or anything. You know, all those types of things. We do all that as if it was a wholesale, even though it's not because it is distressed property that needs a lot of work. So we just want to make sure that they know that what they're getting into and they can still close fast with cash because it's still cash due, um, because you can't get a loan on those. 

December 03, 2024


So they would log in as in call, um, make, you know, single dials from Zink call and then all of our incoming calls would come through. Zinn call first and then, uh, you know, via call rail and all that to where, you know, they would answer it live just on their headset when they're logged in, um, to Zinn call. But now we've got it all directly coming into Podio, which makes it a little easier, in my opinion. So now we're just using Zinn call for cold calling only. We used to use it for acquisitions as well, so now it's just cold calling only. So I think that'll make it easier. And it'll definitely be cheaper because then call you pay per seat. Um, and I don't know exactly how it works, but all I know is we end up paying, like, I don't know, 470 or so per month for Zinn call. And I think that should go down now that I don't have acquisitions and things in there. 

December 02, 2024


So tell me what you got, you know, or whatever. So they're going to be both. You're going to have a ton of people telling you to go fly a kite and not those nice of words. A lot of times they'll tell you to f off or all kinds of crazy things, but stay consistent and just know that getting these nodes is just part of the journey. That's just part of it. But just remember that every single know that you're getting along the way is one step closer to a yes. Okay. Um, and I do believe that's what separates the good from the great. You know, the great people will keep making those calls, and then even when you're sick of it, when you've done it for 4 or 5 hours, um, you know, you may be saying, okay, I'm done for the day, I'm drained or whatever, but the great people might go an extra 30 minutes or make another dozen calls. 

December 01, 2024


Okay, what I would do is I would sign up for a free trial on prop stream comm. Um, I've got a description in the in the. You know, in the description. I've got a link. Sorry. Um, if you go to data Game-changer comm, you can get a free trial. Uh, and if you decide to, to join after your free trial, you can, but you get seven day free trial. Okay, so I'm just telling you what I would do if I started. Okay. Um, so let's just say you have a 9 to 5. So first of all, I would I would commit to doing it. Okay. Got to get your mind right. Know that it's possible. Know that you can do it and then commit to it. Okay. Take a week off from your job. Get the free trial on prop stream.

November 30, 2024


So tell me what you got, you know, or whatever. So they're going to be both. You're going to have a ton of people telling you to go fly a kite and not those nice of words. A lot of times they'll tell you to f off or all kinds of crazy things, but stay consistent and just know that getting these nodes is just part of the journey. That's just part of it. But just remember that every single know that you're getting along the way is one step closer to a yes. Okay. Um, and I do believe that's what separates the good from the great. You know, the great people will keep making those calls, and then even when you're sick of it, when you've done it for 4 or 5 hours, um, you know, you may be saying, okay, I'm done for the day, I'm drained or whatever, but the great people might go an extra 30 minutes or make another dozen calls. 

November 29, 2024


So let's just say you have a list of 1000. Okay? Now, what you want to do is take that list and and you want to skip trace it with, with one of the better skip tracing companies. Uh, you know, if it's 15 to $0.20 a piece, you know, even 20, 25 to $0.30, then it's probably a good service if you find services out there that are 2 or $0.03 or $0.05, you know, or 8 or $0.10, you know, that's probably not the best data. There's a reason they're selling cheap. You know, they want people to to buy it because they know it's not as good. So if they can entice you with the cheap price, that's what they're going to do. So anyways, I mean, their services, I'm not promoting any of them because I don't have any affiliates with any of them. But there is like a batch skip tracing. Com there's I believe skip right. Com um and there's need to skip com there's a bunch of different ones. But those are the three that I would probably, maybe kind of lean towards because I think that those all have pretty good data, um, and that anybody can use. 

November 28, 2024


Because let's face it, unless you are in a real an actual real estate investor, most landlords happen by accident. They don't want to be landlords. They just got stuck into it and happened to have a couple of houses that they never sold or they inherited or whatever the case is. But most people, unless they're actual real estate investors, they're not trying to be landlords. Okay. So they definitely probably have some pain. There's not a ton of pain because after all, it's just a high equity absentee owner list. But we do know they don't live in the house. So a lot of these houses are going to be vacant. Maybe they have renters and they're tired of not getting paid. 

November 27, 2024


People are like, all they think they have to have all these things. They get started. You don't need a contract yet. You don't need a CRM. You don't need a dialer system. You don't need any of these things. All you need is your self, your willingness, a phone, you know, um, and just to get going. Action is is everything. It trumps all those things. So once you once you make a ton of these calls, you're 3 or 4 days into it now. So if you've really been calling 4 to 5 hours a day, that's definitely going to be 2 to 300 phone calls. Okay. And maybe you've gotten a hold of, you know, 40 or 50 people at this point per day. 

November 26, 2024


Um, once you get that list. Now, you have this whole week that you took off. Uh, commit to calling these people, okay? I don't care if you use your cell phone and you're literally hand dialing every single number. Do that, commit to that. But you got to commit to a number, okay? Just calling for 30 minutes. You know that's not going to get done. Okay. What you want to do is call for, uh, I mean, at least 4 or 5 hours a day. I know that's hard. If you need to break that up. Great. Do 2.5 hours in the morning. Um, 2.5 hours in the afternoon or something like that. But whatever you do, try to call, you know, at least 2 or 300 dials in a day. Okay, so hopefully you'll get Ahold of a good 30 or 40, 50 people, potentially. 

November 25, 2024


Exactly what a wholesaling real estate deal it looks like. Okay. So what you do is get a contract with a motivated seller. They don't even have to be. That's even irrelevant. You get a contract with a seller in general, somebody that's willing to sell their house at a discount. Okay, you get that contract. Now you start marketing that contract to cash buyers. And how do you find those cash buyers? Just go to any wholesaling real estate, um, local Facebook group. If you live in Detroit, just type in the Facebook wholesaling Detroit or real estate investors Detroit, those things like that. So you want to find a real estate investor group, start marketing that contract to those people in that group. Okay. And then once once you find a buyer, what you want to do is you're going to sell that contract to that buyer. It's calling. It's called assigning the contract to the buyer. 

November 24, 2024


You've got a you've got a verbal confirmation. Just go to my website wholesale game.com buy a contract. It's a it's a purchase agreement. It's super cheap. Don't buy it before then or don't even buy from me I don't care. Just get you a contract somewhere you can go to. There's a bunch of Facebook groups, national Facebook groups like, um, I don't even know what any of them are, but you could you could just search wholesale and real estate and find all kinds of massive Facebook groups to where you can get free contracts. So I'll do that. You know, if you want to save money, just do that, uh, get the free ones and then get the contract with the seller. So now you're going to market that contract to those Facebook groups. I told you about all the investor groups. Um, just don't don't give them too much information, but just say, hey, I've got a smoking deal in this area. Um, you know, it's worth this. I'm selling it for this. You know, DM me for questions. Ton of people are going to give me their emails or whatever, but just have conversations with buyers now. Then you're going to end up finding somebody that wants your deal. 

November 23, 2024


So now your cash flows down to eight. Okay. Um, and let's say in the meantime, month two goes on. You didn't get any new wholesale deals. You're just still kind of focusing on these fixed and flips. The one fixed flip that you have and the one rental that you have, but you're down to $8,000 on working capital. Um, obviously fixing and flipping, you're probably going to spend more than ten grand, but let's just say you can even get it done for the eight that you have left over. Um, so that's where the issue comes in. Your cash poor at this point, because now your account is virtually down to zero. Uh, you're scrambling to get another wholesale deal closed right away. 

November 22, 2024


So you've got 20,000 left over. Now the fix and flip that you did okay. You got hard money. Uh, a lot of times you can get those for $0 down. Obviously you pay a fee for that and all that, but you are going to have no matter what you're going to have holding costs and you're typically most hard money lenders. At least the places that we flip won't include the remodeling costs. So usually you're out that out of pocket, you know? So if I'm keeping a house and let's say I've got it fully funded 100% from the hard money lender, but then I've got holding costs for a couple of months while we remodel it, and maybe it's 10,000. It's just a lipstick deal, uh, to do the remodel. Um, so at least I'm out. Probably probably $12,000, you know, because a couple of thousand for holding costs by the time you factor in the lending fee and, you know, because you pay monthly for that, for that money, um, you've got all the utilities, the insurance and the taxes, you know, so let's just say you're at 12,000. 

November 21, 2024


Okay. So the warning is this it's easy to fall into the trap of, okay, so now we're also doing some wholesale deals. And now we're also doing fixed and flips. We're also doing, you know, buying holds for long term wealth. And I say that, um, it's not really a trap, but if we're not careful it can trap you because you can become cash poor. Is the whole point of this. Okay. Um, you know, it's happened to me several times over the last few years, um, especially when we started doing more of these type of deals. 

November 19, 2024


Okay, so the warning is this obviously wholesaling is cut and dry. You get a property under contract, you find a buyer, you assign your contract to that buyer. So those contracts the title and you get paid the difference between the two contracts. So it's super simple. There's no real risk in that. Um, and it's easy money without you having to put in a lot of money. Okay. So it's easy to make a good ten, $20,000. Okay, so that's like I said, our number one exit strategy. We like doing that because that helps feed the machine to where we can put marketing dollars to work and then fund a lot of our other things that we're doing. Okay. So the warning is this it's easy to fall into the trap of, okay, so now we're also doing some wholesale deals. 

November 18, 2024


So let's just say even maybe you do. Right at the last minute, you get a, you get a wholesale deal closed and you make another ten grand. Okay. Well, the fix of it probably is going to cost you, you know, 20, 25 grand. I mean, most of them that we do, it's hard to get out for under 25 grand these days, especially with, you know, the cost of materials going up and that kind of thing. So, um, you know, most remodeling jobs cost us a minimum of 25 grand, you know? So let's just say that's the case. You already had eight into it. You just close on another ten.

November 17, 2024


Either that, or if you're only doing 2 or 3 deals a month and you decide to flip one or buy and hold one. Just make sure you have a lot of cash reserves already in the bank, and don't just rely on that 25 K that you just got from those two deals. Um, you know, good rule of thumb is at least 3 to 6 months of working capital in your bank, your business account at all times so that those issues don't ever come into play.

November 16, 2024


But now that's pretty much eaten up as well. So the moral of the story is you got to be careful. Um, you know, tread lightly, make sure you have cash reserves in the bank. Um, you know, because if you're just banking on that 25,000 that you just closed, when you've got this flip and this buy and hold in the process, it's going to be difficult. You're going to have to end up using credit cards or get another line of credit, or you're going to have to do something, you know, borrow money from friends or family or whatever the case. Um, but the point is, you're going to be cash strapped and cash poor, and nobody wants that. 

November 15, 2024


So you got to be really careful when you start doing that. So if you're doing multiple deals a month, I would definitely say, you know, make sure that 80% of those, you know, if that's your goal, 80% of those are wholesales. Because then if the 20%, uh, let's just say for example, you have ten deals. Make sure eight of those are wholesales and two of those maybe you're flipping one and you're buying and holding one because then you've got if your average fee is ten grand. Out of those eight deals that you close, then you've got 80 grand to work with, which gives you plenty of working capital.

November 14, 2024


But you know, it's let's just say for an example, let's just say you have five deals in escrow. Okay? Um, and let's say maybe you wholesale two of those. Okay? And you made, like, 25 grand profit. And let's say one of those deals you decided to keep as a rental because you want long term wealth. Um, and then one of those deals, maybe you couldn't sell it all, so you're kind of letting it go, uh, canceling with the seller, and then one of them, maybe you're flipping it. Okay. All right, so out of those five deals, you let one go. So you've got four deals in escrow. Um, two of them. You got wholesale fees, so you made 25 K, but let's say you're putting at least five of that back into marketing or softwares and different things that you have and need to run the business.

November 12, 2024


So regular wholesale deal. We are getting the property under contract at a discount. Now we hold that contract and we're going to sell that contract to an end buyer that's going to actually close on it at the title company. So all we did was get the contract. Now we sell our contract to this buyer. At closing we get a check okay. So as you can see we did flip that house with no money down. No real risk on our part because it's the end buyers that actually brings the money to the table. Okay.