Breaking into real estate can feel daunting, especially when aiming for ambitious financial goals. For Brad Bone, what started as a modest entry into property rentals quickly evolved into a thriving career in wholesale real estate, to reach $5 million annually. His journey, filled with strategic pivots, calculated risks, and a relentless drive, offers invaluable insights for anyone looking to scale their ventures in wholesaling.
In this blog, we delve into Brad’s path to success, exploring the methods, tools, and lessons that helped him build a profitable and adaptable business.
What is Real Estate Wholesaling?
Wholesaling real estate involves finding distressed properties, getting them under contract, and then selling that contract to an investor or a hedge fund. This method allows you to earn a real estate finder's fee without ever owning the property. It's a brilliant strategy for those who want to get started in real estate without significant capital.
Brad’s Path to Wholesaling Success
Brad Bone began his real estate journey in 2015 with his brother, initially acquiring rental properties before quickly shifting to wholesaling after their second deal. This change marked their transition from buyers to dedicated wholesalers.
"Originally, we were fix and flip operators. Eventually, we transitioned to wholesaling because it allowed us to control our deal flow and minimize the stress of holding inventory."
Early Strategies and Market Shifts
Initially, Brad and his brother debated networking with existing wholesalers versus doing their marketing. They soon realized that managing their marketing efforts was more effective. Although they started with fix-and-flip operations, the shifting market dynamics made wholesaling a more appealing strategy.
"It's nice not to hold inventory and stress over market cycles. As long as you continue to market well and maintain good buyers, wholesaling is advantageous."
Direct Mail: A Key Marketing Channel
Direct mail has played a crucial role in Brad's business. After a brief pause, they reinvested in direct mail marketing two months ago, and the results were impressive. Their initial $17,000 investment brought in five deals. Now, with a $30,000 monthly direct mail budget, they are seeing the potential of this strategy at scale.
Setting Realistic Budgets
New wholesalers should set realistic budgets and manage expectations. A $100 direct mail spend won’t yield instant results, but steady, larger investments can lead to profitable deals over time.
"We spent $17,000 and got five deals. A realistic budget to start might be around $3,000 per deal, potentially yielding $15,000 to $20,000 in profit per deal."
Virtual Wholesaling Across the Country
Brad’s operation stands out because he manages it remotely from California while focusing on deals in Jacksonville, Florida. The transition to virtual wholesaling might seem daunting, but it's entirely feasible with the right strategies and tools.
Leveraging Technology and Local Contacts
The process involves using photos for due diligence and relying on third-party individuals for onsite tasks. While it might not be perfect, it has enabled Brad to scale his operations effectively.
"Buying over the phone using pictures was our process. We relied on third-party people for photos and leveraged connections with local contractors."
Diverse Strategies Beyond Wholesaling
Although primarily focused on wholesaling, Brad employs other strategies like novation agreements—essentially wholesaling but selling to financed buyers through MLS for higher returns. This diversification has made his business robust and adaptable.
"We're probably 80% novations and 20% wholesale. However, I would like to see more wholesale deals; novations make it easier to lock up higher-priced properties."
Lessons from Brad's Journey
Starting Small and Scaling
Brad emphasizes starting with manageable investments while continuously learning and scaling operations. His journey from small rental properties to a multi-million dollar wholesaling business exemplifies the importance of scaling strategically.
Continuous Learning and Adaptation
Attending industry conferences and learning from top players was instrumental for Brad. By staying informed about market trends and adapting his strategies, he's been able to maintain and grow his business.
"Listening to industry leaders and adapting based on market insights has been crucial. It’s about finding what works in your market."
Effective Team Roles
Working with his brother has been a fruitful partnership for Brad. Over time, they have understood the importance of defining roles clearly and using their unique strengths to propel the business forward. They have also brought in external expertise to streamline operations further.
Final Thoughts and Future Goals
Brad's story is not just about his current success but also about his ambitions. Aiming for $5 million gross revenue shows the limitless potential of wholesaling real estate when done right.
"This year is all about pushing forward, growing our business, and continuing to refine our strategies to achieve our goals."
Getting Started
Brad Bone’s journey to building a multi-million-dollar wholesaling real estate business is a testament to the power of persistence, strategic planning, and adaptability in real estate. From mastering direct mail marketing to pioneering virtual wholesaling, Brad has proven that success is attainable with the right mindset and approach.
For aspiring wholesalers, his story serves as both a roadmap and a source of inspiration, illustrating the endless potential of real estate when done right. As Brad continues to refine his strategies and push toward his $5 million goal, his experience underscores a valuable truth: in real estate, consistent learning and growth are the keys to unlocking incredible opportunities.
