Is Wholesaling the Answer to Reaching Your Goals?

Scott Costello All, Blog, Featured 13 Comments

As the year comes winding down I’ve been thinking about what direction I want to go in for 2014.  Lots has changed since this time last year regarding my non real estate life that I can’t help but allow to affect my new direction.  To be sure I am going to change things up because I didn’t see the progress in 2013 that I was hoping for.

Is Wholesaling Real Estate Investing the Answer?

start with why

To answer this question I really have to revisit what my ultimate goal actually is.  As I sit here now, typing this post out, I seem to have lost sight of it.  Sure I want to get out of my 9 to 5  job and have multiple streams of passive income…but how?

This brings me to…wholesaling.  The premise is simple, wholesale enough houses per year to build up enough money so I can truly start investing in real estate.  With wholesaling you are investing your time in order to get a payoff that is worthwhile.   To be honest that hasn’t been the case so far in my career.

I’m not really sure why my partner and I haven’t progressed like we had hoped.  Maybe it’s the lack of time on my part or maybe the lack of money either of us can put into the business for sending out more mailers.  Heck, sometimes I wonder if we are dedicated enough?  They always say that a lack of time and money is not an excuse.  If you want it bad enough you will succeed in spite  of those things.

You can make a lot of money wholesaling houses.  The only problem is that you can NEVER STOP or your money stops.  I hate that business model!  It is not sustainable over a long period of time.  Every wholesaler I’ve followed over the past five years has moved on to either rehabbing or buy and holds…why?

It’s time for me to rethink my path to my goal.   So bare with me over the next month as I lay my thoughts out on my blog.  If you have gone through a similar thought process and have any advise I’d love to hear it.

 

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Comments 13

  1. Hey Scott – I always look at wholesaling as a means to an end. It’s definitely not something most folks plan to do forever. Everyone should probably look at what they want those chunks of cash to do for them. Maybe it’s to pay down debt or to save enough money to quit your job.

    I think you can and should add wholesaling into whichever business model you choose ultimately.

    Sharon

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      Wholesaling definitely has a place in my business model, but how big of a place? I’m not sure I want it to be the lead dog that takes up most of my time. My current situation doesn’t lend itself very well to what wholesaling needs me to do on a regular basis.

      I was thinking that I could focus exclusively on lead generation through a variety of avenues and then farm those leads out to other investors. Sure I will be losing money when they get a deal, but I’ll be getting some money for referrals and such. Basically become a “bird dog” for a while. Kinda a step backwords, but it keeps me in the game while I possible pursue other angles.

      I love the idea of creating a Software as a Service (website version) of my lead management software and getting recurring monthly payments.

  2. Scott-

    That sounds like a plan. I think we all have to change and evolve as our businesses and our circumstances change. I don’t know anyone that has the same exact business model today that they started out with. I think you can definitely monetize your software for passive income.

    Sharon

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      Systems are definitely key. Systems keep me sane and allow me to do things on autopilot.

      Sorry about not dropping by the forums lately, my networking has taken a back seat this month. Hope it’s thriving!

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