Wholesaling Quick Cash
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 to make the first check and set the precedent for a booming business.
Sean: Okay, now tell us about your real estate experience? What type of real estate experience do you have?
Eric: I have been a real estate broker here in Illinois primarily servicing friends and family. The fact is that a small smidgeon of my income is from being a realtor and the vast majority is from technical work. Like anybody else, I follow the money. I’ve been, as I say, working in Austin. Well, guess what? That means I’m not doing many things as far as being a realtor back in Illinois.
Over the course of the last couple years, I’ve acquired a couple of properties that I’ve purchased. I inherited a property there in Chicago from my parents. Over the last couple of months, I’ve decided the real estate market in Austin is just currently one of the best markets in the country. You properly place a property out there, and it sells within a week, and at a decent price—not steeply discounted like the rest of the country.
I’ve purchased two projects from another wholesaler in Austin. They are fix-and-flip properties. The properties I have back in Chicago, I’m using as buy-and-hold rental properties. I have a total of five properties: three rentals and two fix-and-flips.
Sean: Sweet, but you’ve never actually wholesaled a deal before?
Eric: I have not. I’ve been on the receiving end, not on the selling end.
Sean: Perfect. For everyone listening, here’s the scoop. Here’s what we’re doing. We are going to document on the show with Eric and report back. I’m going to give him assignments, stuff to do. He’s going to report back with his struggles, successes, and the whole gamut. What we’re going to do with him is have him escape what he’s currently doing—being done with computer consulting. You said you make about $150,000 a year gross in your job there?
Eric: Yes, about $150,000 gross from consulting and about $30,000 from the rental properties.
Sean: Okay, so basically what you have to do is replace that income. We have to get one year’s worth of income in the bank. The first thing we have to do is get a check in his hand as fast as possible. Once we get a check, he’s going to realize it works. He can wholesale properties, and then it just becomes scaling it from that point forward.
The second thing we have to do is get one year’s worth of income in the bank, as fast as possible. We have to get at least $150,000 cash in the bank, so he feels comfortable that he can go out and be done—escape his other job where his phone is ringing off the hook, keeping him up at 3:00 in the morning for a chaotic issue of a server breaking down or something. After that, it becomes scaling it to further levels beyond that.
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