Wholesale Real Estate is like playing matchmaker for houses. You find homeowners ready to sell and connect them with eager buyers, making a profit without owning the property. It's a smart way to start investing in real estate.
Today, we’ll dive into the inspiring journey of Justin Johnson, a former healthcare entrepreneur who successfully transitioned into real estate wholesaling. His story shows how determination, learning, and adapting can help anyone build a profitable business in the competitive world of real estate.
Whether you’re new to real estate or looking to expand your skills, Justin’s journey offers valuable lessons on how to overcome challenges, grow your network, and stay ahead in a constantly changing market.
Justin Johnson's Story
Justin, from South Jersey, started his wholesaling journey in 2018. Before that, he worked in healthcare, running outpatient centers. Although helping people was rewarding, the emotional challenges led him to seek a different career. He chose real estate because it deals with properties and numbers, which felt less emotionally demanding.
From Healthcare to Real Estate
Johnson's transition to real estate was spurred by a desire to step away from the emotionally taxing healthcare sector, specifically behavioral health, where he owned outpatient facilities. The field, although rewarding, came with significant emotional challenges that ultimately influenced his choice to seek a different path. Unlike healthcare, real estate offered him a more detached yet fulfilling business environment.
"Real estate was cool for me because it didn't talk back," Johnson muses, implying the numbers-based, tangible nature of real estate, in contrast to the emotional weight of healthcare work.
Mastering Wholesaling Fundamentals
When Justin started, he used simple methods to find properties:
- Door Knocking: Visiting homes and asking owners if they wanted to sell.
- Cold Calling: Phoning people to inquire about selling their properties.
- Direct Mail: Sending letters to homeowners offering to buy their houses.
He also used DealMachine to help find potential properties. By asking, "Would you like an offer on your house?" he learned how to talk to sellers and negotiate deals.
Building a Support Network
Justin knew the importance of learning from others. He listened to "Bigger Pockets" and joined "Collective Genius," a group for successful real estate investors. Even without a personal mentor at first, he connected with many people to share ideas and gain knowledge. This network helped him move from healthcare to real estate smoothly.
Here's a great video where Justin Johnson shares his real estate wholesaling journey, insights, and tips for success. Watch and learn from his experience!
Facing Challenges in the Market
Justin's journey wasn't always easy. When interest rates went up and the market slowed down, he had to adjust his strategies. Initially, he focused on wholesaling houses—quickly buying and selling properties.
But in 2022, the Philadelphia market became unpredictable. To keep his business steady, Justin started holding onto some properties to rent out and flipping others, which means buying, fixing, and selling them.
Growing and Adapting
Justin's team grew to about 10 people, a testament to his dedication and strategic planning. In 2023, they aimed to complete 120-130 wholesale deals and planned for 40-50 flips, proving their growth wasn’t by accident. Expanding from simple wholesaling to rental properties and flipping houses demonstrated Justin’s flexibility and willingness to evolve.
By diversifying his business model, he could tackle different market conditions more effectively. This approach not only stabilized his business but also made it more profitable. His adaptability and strong leadership were key factors in scaling his operations and achieving consistent success.
Understanding Market Cycles and Marketing Strategies
One important lesson Justin learned is that the real estate market trends go through cycles, and marketing methods can become more or less effective over time. For example, he found that direct mail, which seemed outdated, later became successful again. When online advertising became too crowded and expensive, switching back to direct mail helped him find new opportunities.
Conclusion
Justin Johnson’s journey proves that with hard work, resilience, and smart strategies, anyone can achieve success in real estate wholesaling. From mastering the basics to overcoming market challenges, Justin’s story is a powerful reminder that staying flexible and continuously learning are the keys to thriving.
His journey offers valuable lessons for beginners and experienced investors alike. If you’re willing to keep moving forward, you too can build a successful real estate business and reach your goals.
Remember, the real estate market will always change, but with the right approach and determination, you can always find a way to succeed. Whether you're starting from scratch or trying to expand, staying focused, adapting to trends, and building strong connections will guide you toward real estate success.
