what's going on everybody so in today's video I'm gonna be going over what a
real estate the wholesaler makes in a year and this is based on my own
personal experience having done a lot of wholesale deals having worked with a lot
of wholesalers and just having been in the real estate investing business for a
little while now and before we really jump into this video I want to say you
know this is not a guarantee that you're gonna make this amount as a wholesaler
this is what an above-average you know good full-time wholesaler would make as
an estimate every single year so I just wanted to make sure we're clear on that
because there's some wholesalers that might only do like one or two deals per
year and then there's some wholesalers that make seven figures per year so it
can vary pretty widely depending on you know how serious the person is in the
business depending on their marketing budget depending on the price range of
houses but as we can see here I did a ten thousand dollar profit per deal for
fifteen deals for a grand gross income total of one hundred fifty thousand now
in some markets you know ten thousand might be a little low and other markets
it might be extremely high honestly I think ten thousand dollars if you're
making that on any type of deal that that's pretty good but there's some
wholesalers they might average like five thousand or seven thousand dollars per
deal where in other markets the wholesaler might only do the deal if
they're making fifteen thousand twenty thousand the first wholesale deal I ever
did I made thirty five thousand which is one of the highest amounts they ever got
paid on a deal for wholesaling but I've also done deals where I've made like
1,000 5,000 and kind of in the ten thousand range so fifteen deals that's
basically one deal per month if you're doing enough marketing you know if
you're sending out direct mail if you're doing cold calling if you're doing
online marketing door-knocking whatever your marketing strategy is and
you're doing it to the right motivated prospects you should be able to do about
one deal per month which should be about 15 deals per year and again like I said
this is good this is above-average you know if you're starting as a wholesaler
just getting your first dealer to you know just focus on that that's the most
exciting part that's how you really get your marketing down and you can see that
this really is a business once you get your first you know couple of deals down
so as you can see below some wholesalers will be full time wholesalers but
they'll also have additional sources of income and if you're a real estate
wholesaler investor rehab or real estate agent you should have as many sources of
income as possible there's a lot of complementary business
is in the real-estate industry and as you can see here you know a lot of the
most successful investors I know you know they'll have these additional
streams of income so rental air b.b properties I put $10,000 per year one
deal for $10,000 with rental properties and Airbnb as a wholesaler you're
basically like a marketing company so you're trying to generate as many leads
as possible from off-market motivated sellers and when you're generating these
leads you're gonna get all types leads you're gonna get leaves that you could
refer to real estate agents and we'll go over that in a little bit you're gonna
get leaves that might be good rehabs but you're also going to get good leads that
could be great rental properties or even Airbnb for that matter I have a property
right now that I'm under contract with and instead of rehabbing it instead of
wholesaling it the numbers actually work much better as a rental property so you
should always kind of keep your you know eyes open for different types of deals
when I was first getting started as a wholesaler I would only look at deals
through the eyes of a wholesaler so I passed up on a lot of rentals rehabs
referrals agent deals all different types of deals because I was only
focused on the whole ceiling and you know you should just keep your options
open as is all I'm saying so next on the list is coaching and
consulting and I put $5,000 for that so if you're a successful wholesaler or
rehab or real estate investor real estate agent there's gonna be
opportunities to sell information or in some cases with wholesale and you can
joint venture with newer real estate investors and there's a lot of
wholesalers that might have a program a coaching program of course some type of
mentorship where they charge money or maybe people pay them to speak at
different events there's it's a huge business that's very complimentary to
you know once you kind of set up yourself as a real estate investor the
information marketing side of the business is massive so a lot of
wholesalers do that and if you want to be a wholesaler but you don't want to
sell information because maybe you think it's cheesy and corny too so information
products on how to be a real estate investor just do joint ventures you know
train new real estate investors for free but basically how to bring you leads how
you find your leads and then you can joint venture like 50/50 with any
motivated seller leads and there's a lot of real estate investors that do that so
that's a very smart business model right there the next thing I have on the list
is real estate agent and I put $10,000 for two deals so be $5,000 per deal so
again like I talked about when you're getting all these leads
let's say you get a hundred leads you know maybe only ten or twenty or thirty
of them might actually fit the wholesale model you might have like twenty-eight a
lot of times the leads are gonna want full price and they'd be much better off
with the real estate agent and that's not to say all those leads would just
automatically convert to a real estate agent but if you're kicking over like 25
or 30 leads every single month to a hungry real estate agent they can
probably close at least one of those and give you some type of split some type of
referral fee so you know you should number one also get your real estate
license so that you can have MLS access and then if you do any rehabs you can
listen to yourself and save some money but also to get the referral fees
because you're not really allowed to get referral fees if you're an agent and one
person's not an agent it gets kind of into a gray area there so I'd recommend
getting your license and referring leads that you can't use next up on the list I
have rehabs and I did forty thousand for one deal forty thousand so when you're
wholesale and you're gonna come across properties that might be great rehabs
obviously because a lot of times you're going to be selling these wholesale
leads to rehab investors and although rehabbing is more risky than wholesaling
because you're actually fixing up the property you can make a lot more money
during rehab and if you can do like a pretty quick turnaround then you can
wholesaling so the whole reason I got started in wholesale was because I liked
the marketing aspect of things I liked just finding the deals however what I
realized is you know I was passing up in a lot of rehabs that weren't very
difficult I was kind of scared of doing the larger rehab projects just because
that wasn't really my specialty however you're gonna come across leads that
might only need a little bit of work like a condo lead I just got a condo
under contract that you know might need like twenty five thirty thousand dollars
for the work and instead a wholesaling it for like ten or fifteen or twenty
thousand I'm gonna do a light rehab to it and possibly make forty or fifty
thousand so wholesalers that can kind of do a combination of all these different
sources and streams of income I think you're gonna do a lot better than the
ones that just wholesale so as you can see here two hundred fifteen thousand
gross income as before expenses which we'll go over right now okay so your
main expenses as a wholesaler it's just gonna be marking it's gonna be all your
marketing expenses you know you can have like a virtual office you can have a
virtual assistant which we'll talk about but your main expenses are just gonna be
like Direct Mail possibly cold calling if you're outsourcing that or maybe
doing it yourself but it's really just all marketing that's all wholesaling is
its marketing so all your marketing expenses are gonna be
here and Direct Mail is one of the most popular my favorite way of getting leads
and twenty four thousand dollars per year in direct mail which is $2,000 per
month which is sending out you know thousands and thousands of postcards
every single month or letters and that should be able to get you at least one
deal per month if you're marketing to the right people
and following up with them and of course the right people being like hi equity
you know pre foreclosure potentially depending on which state you're in
probate inherited properties absentee owned eviction things like that you
don't want to just mark it to everybody you only want to market to people that
have high equity and it basically already raised their hands as people
that could be willing to sell at a discount just to get the hassle of the
of selling the property off of their hands so I put twenty four thousand
which again some wholesalers might only need to spend like five hundred dollars
per month and then there's some wholesalers that spend like eighty
thousand dollars per month do we you know tens of thousands of mailers TV
radio cold calling everything like that next up we have a virtual assistant
which I put at fifteen thousand dollars per year so as a real estate wholesaler
real investor you should have a virtual assistant they can answer phones for you
do research send out direct mail they can basically save you like five ten
twenty thirty forty hours every single week to allow you to just focus on
getting the deals and I found that the best place is to get virtual assistants
number one is up work they have virtual assistants of all different price ranges
all different skill levels and everything like that so that definitely
check out up work and then also Fiverr is great as well and fivers a little bit
more affordable but there's tons of different services that you can get as
far as virtual assistant goes next up we have education so most of the top real
estate investors that I know are really just the top successful people I know
they're always spending money on different education programs going to
seminars events getting mentoring different things like that
I mean this number could be really low I mean there's some people they don't
spend any money and maybe they just buy a book or two per year and I know some
people that spend a hundred thousand dollars per year just on their self
education and trying to learn the newest strategies so I put five thousand a
myself personally I spend significantly more than five thousand dollars per year
in my education but I think five thousand is a pretty decent number next
up we have additional expenses so I put ten thousand anytime you're in a small
business there's always different expenses I can come up
I think ten thousand is a pretty fair number but there's always going to be
overages and things you weren't expecting when you're a small business
owner so I put ten thousand which gives us a grand total of fifty four thousand
dollars per year in total expenses and as we come down you can see the gross
income two hundred fifteen thousand minus expenses fifty four thousand gives
us a total income before taxes of a hundred sixty one thousand dollars per
year and like I mentioned one hundred sixty one thousand dollars per year
would be really good as a wholesaler you know you shouldn't expect to make that
your first year there's definitely some wholesalers that probably do but you're
doing pretty well if you're making that amount and obviously there's people that
make significantly more than one hundred sixty one and then there's some
wholesalers I might just do you know one or two deals per year and maybe just
make ten twenty thirty thousand dollars per year so there's a wide range and
that being said if you have any questions about wholesaling drop them in
the comment section below and I actually created an introductory
guide to wholesaling which is available on Amazon in Kindle format paperback as
well as audio format so I'll put a link to that below which you should
definitely go check out I think it's only ten or fifteen bucks but definitely
worth your time so check that out let me know if you have any questions and I
will see you in the next video bye bye