How to Start a Successful Wholesaling Business: A Journey from Cold Calling to Real Estate Investing
Are you interested in starting a business but hesitant to go out on your own?
Today, we are featuring a special guest, Nick, who went from making $15 an hour cold calling to working for a real estate investor and finding a wholesale deal that earned him $35,000 in commission. Nick's success story is a prime example of how you can learn on the job and eventually start your own business.
In this blog post, we will dive into Nick's journey, his strategies, and the lessons he learned along the way. Get ready to be inspired and discover how you too can achieve financial freedom through real estate investing.
Starting in Real Estate: From College to Cold Calling
Nick's journey in real estate began when he was in college at the University of Texas in Austin. He landed a job at a cold calling center for a prominent realtor named Tim Isle, who was seen as a protege of Gary Keller, the founder of Keller Williams Realty.
At this cold call center, called Phone Animal, Nick gained valuable experience in cold calling and honed his skills in asking people if they wanted to sell their properties. Although the pay was only $15 an hour, Nick understood the importance of learning the ropes and building a foundation for his future career in real estate.
After taking a break from real estate for a couple of years, Nick met a group of individuals in Austin who were involved in real estate development, fix and flips, and wholesaling. Inspired by their work, Nick joined their team as an acquisitions manager and completed his first wholesale deal, which brought in a staggering $50,000 assignment fee. This initial success propelled Nick's career in real estate and led him to explore new opportunities and strategies.
The Game-Changing Wholesale Deal
Nick's first wholesale deal was a game-changer for him, both financially and professionally. The deal involved a rundown house that Nick managed to secure under contract. He then assigned the contract to an investor who had the necessary funds to purchase the property.
The difference between the contract price and the investor's purchase price was a whopping $50,000. Nick earned a commission of $35,000 from this deal, while the investor made $40,000.
This successful wholesale deal had a significant impact on Nick's career trajectory. It gave him the confidence to venture out on his own and explore other types of real estate deals. The substantial commission he earned also provided him with the resources to invest in his own list and pursue future opportunities.
Transitioning to New Strategies and Deal Types
With the experience and financial resources from his early successes in wholesaling, Nick expanded his business to include new strategies and deal types. He transitioned into new construction projects and began focusing on tear-down properties in Austin. Rather than traditional stick builds, Nick chose to pursue modular homes, which are pre-built in a factory and then transported to the construction site.
Modular homes offered several advantages, including cost-efficiency, shorter construction timelines, and the ability to customize designs. Nick's company started building modular homes and found success in this niche market. Currently, they have ten ongoing new construction projects, which have become a primary focus for the business.
Building a Brand, Scaling, and Overcoming Challenges
Nick also recognized the importance of building a brand and establishing a social media presence for his business. Although he hasn't started actively posting yet, he plans to share more about wholesaling, new construction projects, and the real estate industry on his Instagram account (@NickHague9). He draws inspiration from successful real estate investors like Pace Morby and Brent Daniels, who leverage social media to expand their networks and attract new opportunities.
Scaling a wholesaling business requires consistent dedication and a focus on building relationships with potential buyers and investors. Nick advises aspiring wholesalers to connect with hard money lenders in their target markets and develop relationships with them. By understanding who is actively seeking funding, wholesalers can bring potential deals to these lenders, resulting in smoother transactions and increased success rates.
Despite the numerous successes Nick has achieved, he admits to making mistakes along the way. One of his biggest mistakes was not speaking to enough buyers before securing a deal under contract. This lack of buyer engagement resulted in challenges when trying to sell the contract and eventually led to its cancellation. To avoid similar situations, Nick advises wholesalers to proactively reach out to potential buyers and investors, discuss their requirements and preferences, and build relationships before locking in deals.
Conclusion: The Power of Skill Development and Networking
Wholesaling has had a transformative impact on Nick's life. It has not only provided him with lucrative opportunities but also enabled him to develop critical skills in negotiations, sales, and relationship-building. Nick emphasizes the importance of continuous learning and personal development by regularly reading books, listening to podcasts, and studying successful investors' strategies. He credits books like "Never Split the Difference" by Chris Voss for honing his negotiation skills and highly recommends it to aspiring wholesalers.
In summary, wholesaling offers an excellent starting point for anyone interested in real estate investing. It allows individuals to learn the fundamentals, make money quickly, and build valuable connections within the industry. As Nick's journey demonstrates, wholesaling can be a stepping stone to pursuing more complex real estate strategies such as new construction projects. By investing in skill development, networking, and leveraging social media platforms, wholesalers can achieve financial freedom and establish themselves as successful real estate investors.
If you're interested in wholesaling or real estate investing, follow Nick on Instagram (@NickHague9) to stay updated on his journey and gain valuable insights and inspiration for your own entrepreneurial pursuits. Remember, success in real estate starts with taking the first step and never giving up on your dreams of financial freedom.
About Samantha Ankney
Samantha has been a media specialist for DealMachine for 1.5 years. She produces, edits, writes, and publishes all media that is distributed to the DealMachine and Real Estate Investing community.