Starting a side hustle can give you more control over your income and happiness. Wholesaling real estate is one lucrative option to replace your 9 to 5. This blog post will dive into the story of Zack Boothe who went from working 70 hours a week washing windows to wholesaling over 1000 deals and making 7 figures.
He breaks down the 4 stages of wholesaling real estate from start to finish:
Stage 1: Building Your Foundation
This includes:
- Getting real estate contracts
- Consulting an attorney on the legalities
- Partnering with a title company
- Building a cash buyers list
"Stage one, you got to get your real estate contracts, talk to an attorney about the legalities of wholesaling. You've got to get a title company or escrow company or a closing company, whatever you call it, estate. Someone that understands the creative structuring for the paperwork of transferring ownership."
Stage 2: Finding Motivated Sellers
Zack's favorite strategy driving for dollars. This involves driving around looking for vacant or rundown houses, and then contacting the owner to see if they want to sell.
"I love driving for dollars. It's my number one strategy that I use.
If you all don't know who I am. I did a 40 day challenge where I did driving for dollars to find these sellers, and I wholesaled three properties, made $93,000 with $1,000 spent on driving for dollars. It's crazy, right?"
Stage 3: Negotiating Deals
The key here is to come from a place of caring about the seller's needs instead of just convincing them. Ask questions as if you were talking to a family member. This builds trust and filters out sellers you can't help.
"If a family member calls about your service of buying and selling a house, if your negotiation process or your conversation changes at all, you're doing it wrong."
Stage 4: Finding a Buyer
Once you have a property under contract, contact your cash buyers list. Price the deal lower than you think it's worth to spark a bidding frenzy.
"If you send it too high and you have crickets and you have good buyers, that means you're priced too high."
Let's learn more about Zack's journey into wholesaling...
Zack's Journey to Financial Freedom
Before wholesaling real estate, Zack owned a window cleaning business:
"I worked really hard. Lack of work ethic wasn't my problem. I just was working 60, 70 hours a week, and I was just stuck.
I was stuck. And the bigger my business got, the less profits I got. So I had hit that point of diminishing returns. I had three trucks and 13 employees, and I was making less money then than it was just me and three employees with one truck."
He felt stuck financially and unable to provide the lifestyle he wanted for his family. Wholesaling gave him time and money freedom.
"Freedom is amazing. But even more important than all of that, David, is I was telling my wife this last night. I wake up excited. I'm excited to leave the house, to go to work. I'm excited to leave work and go home and be with my kids.
I don't feel stuck anymore, which, honestly, was the biggest burden because money doesn't give you total fulfillment for sure. It's a tool, it's a resource. It's needed to help us be happy."
How to Scale Wholesaling with Driving for Dollars
Driving for dollars keeps working as you scale because you're not limited by a list. You can always drive more and hire people to drive for you.
"Driving for dollars, if it's done properly, here are some of the metrics that I shoot for. So now you can go, am I doing driving for dollars? Like Zack, am I doing it?
I shouldn't say, am I doing it properly? I sound pompous, but I do a million dollars a year doing driving for dollars, right? So this is how I'm doing."
Zack looks for:
- 50-100 properties per hour of driving
- 6 contacts per hour of cold calling those properties
- A 1:10 ratio of marketing dollars spent to profit
Whether you want to replace your income or scale to 7 figures, wholesaling real estate gives you control. As Zack says:
"I have fulfillment. I have purpose. I'm excited about what I get to go do. So, yeah, man, life is so different. So different."
Wholesaling real estate and driving for dollars can help you reach financial freedom, and we hope Zack's journey inspires you to stick with it. Your hard work and efforts can pay off greatly.