This is a continuation of “The Great Escape” interview with Eric Thiele. Eric is working with Sean Terry and Flip2Freedom.com to learn how to start up a successful wholesaling business. In this section, Sean and Eric discuss how small risks can lead to massive success.
Eric: Good news is, on the other project, I’m going to meet with a prospective buyer who I think is going to get a contract on my first rehab. I have to get that sewn up tonight. And that will give me quite a bit of funding to go after deals. I’m very excited about that.
Sean: That’s one reason why I like wholesaling so much; when it comes to it, your risk on a HUD home is $500 to $1000. Your risk is your marketing. Your marketing is a potential risk, but if you can target it correctly, by targeting the right lists, then your probability of success is extremely high.
When you get into rehabs there is always the element of not knowing what’s under the slab or foundation, or having expansive soil or something like that, that could be a money pit. But, there is a larger profit that’s involved. Now when it comes to wholesaling, you can scale it for volume, and then maybe every tenth deal, you get a home-run, where you’ll come in and you’ll get a property under contract. The seller just wants to get rid of it. You get it under contract, and then turn around and make $50,000 on the deal, and you’re going, “Wow. That’s unbelievable.” You can be able to do that.
But I commend you for stepping out in your quest for trying to do that. You started those rehabs before we actually met, so now you’re working through those, and you’ll be able to make some money on those and deploy it into this.
Eric: Exactly, and the lesson to be learned here was yes, I got involved in these two rehab projects before I learned about you and your roadmap for success. And, basically, the mistake I made was, I sunk everything I had into both rehabs. And didn’t leave myself any extra money to play around with doing other strategies, such as wholesaling.
Eric: So, for anyone listening who’s even considering that, it’s not a lot of money to get involved with wholesaling, but you still have to have something. You still have to have a couple thousand dollars, so you can invest in marketing and have the cash to put in the earnest money.
The last month, I haven’t had any of that. I literally am counting the days to getting my check from my consulting income. That is not a good place to be. I mean, it’s great to know I have a payday coming. It’s not as bad as some people have it, but you have to have a little bit of green in the account to pursue some of these strategies.
See “Eric Hits A Wall TGE Episode 3″ Part 13…
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