![Quit Your 9-5 in Under 2 Years: Mike and Jae's Wholesale Journey](https://www.dealmachine.com/hubfs/Mike%20and%20Jaes%20Real%20Estate%20Investing%20Success%20Story.jpg)
Quit Your 9-5 in Under 2 Years: Mike and Jae's Wholesale Journey
![Samantha Ankney](https://www.dealmachine.com/hubfs/medium.jpg)
Are you dreaming of building a side hustle that allows you to leave your 9-to-5 job? If so, you're not alone. Many aspiring entrepreneurs seek financial freedom, and for some, wholesale real estate has been the key to achieving it. In this post, we’ll dive deep into a journey of financial independence through wholesaling real estate, highlight practical steps taken, and share insights to help you start your own journey.
Introduction to Wholesaling Real Estate
Wholesaling real estate involves finding properties at below-market prices and selling them to investors at a profit. It's a proven business model many have used to create substantial income without needing a lot of upfront capital.
In a recent episode of the DealMachine Real Estate Investing Podcast, hosts David Leko and Ryan Haywood shared insights gleaned from their own journeys. David has helped close over 10,000 real estate wholesale deals. Ryan, who started wholesaling in 2019, successfully quit his 9-to-5 job shortly after. The episode featured Mike and Jae, who broke down their journey of quitting their day jobs in under two years through wholesaling.
Why Wholesaling?
For anyone looking to gain financial freedom, wholesaling real estate offers several compelling advantages:
- Low Start-Up Costs: You don't need to purchase property outright.
- Quick Turnovers: Deals can often close quickly, providing fast returns.
- Flexibility: Allows for a scalable business model that fits various lifestyles.
Ryan and David emphasized these benefits, noting that wholesaling provided the financial means to leave their full-time jobs.
A Journey from Zero to Financial Freedom
Mike and Jae’s story illustrates the transformative potential of wholesaling. They began their journey by leveraging free marketing strategies and social media. They found their first deal in a local Facebook group through a simple yet effective method: a yellow sign stating, "We buy houses full price, in any condition." This grassroots approach yielded immediate results.
"One of our signature ads that we still use to this day is Jae standing with a vibrant background, holding a yellow bandit sign that says, 'I pay full price for homes, as is, any condition.'" - Mike
The First Deal: Overcoming Hurdles
Their first deal involved a run-down house they acquired for $40,000, which needed heavy repairs. The After Repair Value (ARV) was about $130,000. In the beginning, they had to renegotiate the price multiple times due to unforeseen issues, like a mechanic lien.
They locked up the deal using a purchase agreement and found a buyer through Facebook again. The closing process involved renegotiating and working through a lien, yet they managed to close within 30 days, earning a profit of $6,680.
Step-by-Step Wholesaling
- Identify a Property: Use social media, yard signs, and free organic marketing to find potential deals.
- Get it Under Contract: Use a purchase agreement to lock in a price with the seller.
- Find a Buyer: Market the contract to investors who might be interested in the property.
- Close the Deal: Work through any title issues or renegotiations, and finalize the deal.
Creative Financing: An Advanced Strategy
While wholesaling cash deals is a solid starting point, Mike and Jae soon explored creative financing, known as “subject-to” deals. This involved taking over a seller’s mortgage payments, which enabled them to structure deals that wouldn’t work as straightforward cash offers.
For instance, they took over a mortgage for a house in Houston that the owner needed to offload quickly. They structured the deal such that an investor took over the mortgage at a 3.8% interest rate, paid Mike and Jae a $20,000 assignment fee, and then managed the property as their own.
Building a Sustainable Business
Mike and Jae emphasized the importance of scaling and using efficient systems. They have hired virtual assistants and transaction coordinators, allowing them to focus on high-level strategy instead of day-to-day operations. Their goal is to remove themselves from direct deal closure, enabling further business growth.
Team Structure:
- Mike: Handles seller communications and ensures leads move smoothly through the pipeline.
- Jae: Manages operations, including staffing and systems setup.
Final Thoughts and How to Get Started
Wholesaling real estate offers a proven pathway to financial freedom. If you’re looking to start your journey:
- Educate Yourself: Understand the basics of real estate wholesaling.
- Leverage Free Marketing: Use social media and community networks for lead generation.
- Stay Persistent: Deals may come with challenges, so be ready to adapt and renegotiate.
- Scale Strategically: Once you start closing deals, consider hiring for tasks that can be systematized.
Remember, whether you're drawn to the simplicity of cash deals or the complexity of creative financing, wholesaling offers versatile opportunities to build lasting wealth and achieve financial independence.
You can check out Mike and Jae's entire story below from the podcast.
![Samantha Ankney](https://www.dealmachine.com/hubfs/medium.jpg)
About Samantha Ankney
Samantha is the Social Media Manager at DealMachine, where she oversees all social media strategies and content creation. With 3 years of experience at the company, she originally joined as a Media Specialist, leveraging her skills to enhance DealMachine's digital presence. Passionate about connecting with the community and driving engagement, Samantha is dedicated to sharing valuable insights and updates across all platforms.