Want to know a BIG reason why I love wholesaling?
It’s because there are few industries in the entire business world where you can consistently make as much money with the least amount of effort and work… than you can with wholesaling.
(Yes, despite the rumors you may hear, wholesaling is legal today.)
Think about this: When you automate your wholesaling business (like I’ve done), the amount of money you make with the amount of work that you do when you’re wholesaling properties is AMAZING.
Hands down, the fastest way to make $10k a month is wholesaling real estate.
And, it’s also easily the fastest way to quit your J.O.B. (if that’s a goal of yours).
You CANNOT make that reality happen quickly by buying 100 rental properties — that takes forever and usually comes with a lot of risk and is costly. (Which is exactly why I’m not a big fan of rehabbing and buy & hold.)
And hey, you can even create passive income with wholesaling if that’s your goal!
How?
Systems!
And if you systemize and automate a wholesaling business like I’ve done, you can consistently wholesale deals with the least amount of your personal involvement.
Before long — very quickly actually — you can be making a good deal more than what you need for your current lifestyle.
And if you’re trying to build cash flow, don’t use your wholesaling profits to upgrade your lifestyle. Instead, start cherry-picking deals from your wholesaling efforts that you want to keep… and spend your nice profits on cash flowing rentals — heck, even free-and-clear properties!
Use those wholesaling profits to invest in rentals to create long-term passive income and wealth.
Ok, so a question I hear a lot when I describe for people my automated wholesaling business model is: How do you scale?
How to Scale Your Wholesaling Business
Welp, if you’re in 1 market and doing well… then add another market. And then soon after you can likely add a 3rd. And even more markets.
You’ve already got the systems and processes down, right? All you need is more people! (In different markets.)
Let me throw some numbers at you to crystalize this idea about making amazing money with wholesaling…
Let’s say you’re in 3 markets, and you’re averaging 2 deals per month per market.
After marketing expenses ($500/deal), you’re netting $2,000–$3,000 per deal. (BTW — that’s conservative, because I’m averaging $4k–$5k per deal.)
3 markets x 2 deals per market x $2k = an average of $12,000 monthly income
Now, let’s take this a step further…
Imagine if you were in 4 or 5 markets — you’d be bringing in enough profit to hire/train an acquisitions manager to run everything for you.
He/she would manage:
- VA (virtual assistants)
- Local wholesalers
- The closing process
- The title companies
- Marketing
Now you’ve got a legit business!
But keep in mind that even though I run my business this way — with a hands-off approach (delegate and automate) — you still need to make sure that you stay involved in your deals.
Don’t get in the way!
Just check in and see what’s going on and how you can help.
See, I partner with local wholesalers in the various markets I’m in. I send them the leads we get from my marketing, and they handle the rest — meeting the seller, making the offer and closing the deal.
Here’s the thing: A good wholesaler already has a solid buyers list and knows exactly the types of properties those buyers are looking for you. Which means it’s simple and easy and fast to either assign or double close the deal.
And even when your wholesaler has a great buyers list, you can still help find a buyer by having your team:
- Put out bandit signs
- Send direct mail to investors who bought property in that area recently
- Call property managers and people who are advertising rentals
- Call or text your own active buyers list
I especially like sending yellow letters to buyers in the area. My letter reads like we’re a desperate, motivated seller who has to sell a rental quickly.
It gets a really good response. 🙂
SUPER IMPORTANT NOTE: When you get a property under contract, you (and any local wholesalers you might be working with) must advertise the CONTRACT for sale NOT the property. (Otherwise, you’re brokering illegally.) Sell the contract.
Also, keep in mind wholesaling laws may vary depending upon which state you live. For example, wholesaling in California is different from wholesaling in Texas.
You also want to make sure that your wholesaler partner works with a great title company. This is super important!
What do I mean?
Well, a great title company understands our type of investing — they’ll make your life waaaaaay easier when doing assignments or double closes. Otherwise, you could be looking at major headaches and roadblocks.
Of course, cashing the checks on these closed deals is the best part… my wholesaler partners and I split the profits 50/50.
Win/win.
The Bottom Line: How to Scale your Wholesaling Business
So just remember, if you’ve built your business on simple, automated systems, then you can scale up and build a strong business that provides passive income.
Even (especially!) with wholesaling.
