Do you feel like the corporate world is just not made for you? Have you been trying out different side hustles, only to end up with little to no traction?
If this sounds like you, then today's blog post is just what you need. We have a special guest, Joshua Goode, who shared his journey in the world of real estate wholesaling, and how this has made a significant difference compared to other businesses he’s tried such as owning a film studio, a recording studio, working at the YMCA, and even having a construction company.
So, what is wholesaling in real estate? Think of it as a way to make money by finding distressed properties and selling them to investors who in return offer you a finder's fee for locating these deals. Its initial investment is quite low yet its potential for high returns makes it an attractive side hustle.
Joshua Goode shares his story of how he reeled in $14,000 on his first wholesale deal.
However, it wasn’t always smooth sailing. Joshua stumbled upon the concept of wholesaling when he was trying to figure out what his next move would be amidst the slowdown of the film industry due to COVID. He had just had his second child and was feeling the pressure to provide for his family. Intrigued by a YouTube video on wholesaling by Brent Daniels, TTP, he decided to sign up for the course.
After obtaining his first contract, Joshua encountered some challenges. It seemed like the agreed price of $110,000 was not going to work, as potential buyers were willing to pay $20,000 less. He had to go back to the seller, admit his mistake, and renegotiate for a lower price. Finally, the seller agreed to let him buy the property for $70,000, a sum that eventually netted him $14,000 in profit after he found a buyer who rebought the property at $90,000.
"You kind of want to go back to your seller and give them a lower number than what you actually needed at hoping that when they come back to you, that it's going to be at that number that you really need it at."
An important takeaway from Joshua's journey is the importance of taking action, even if you don't have all the pieces of the puzzle yet. He didn't let the fear of not knowing how to compute the value of a property stop him from pulling a list of properties and having conversations with potential sellers. This experience is a vivid reminder for anyone who wants to turn their life around financially.
When Joshua pulled the Tired Landlord list, he had some success with it and was able to get a few deals. However, he couldn't picture how this strategy was sustainable in the long term. What followed was a strategic switch to Direct to Agent outreach, which worked out much better for him. It provided him a quicker momentum build and gave him more clarity about the potential of wholesaling.
Tapping into agents who potentially have clients who want to sell their homes proved to be a lucrative strategy. Joshua emphasizes the importance of reassuring agents of your capacity to close deals; they often care more about that than whether you are wholesaling the property or not.
Furthermore, using traditional real estate contracts when buying a listed property is paramount. Such contracts are naturally assignable, which simplifies the wholesaling process.
Joshua shared how wholesaling has dramatically impacted his life not only financially but also personally. Wholesaling helped him establish discipline, a value he's now applying in his fitness and home life.
"Wholesaling helped my life at home, my life in the office, just myself. I'm growing, and wholesaling has helped me grow quite a bit."
If you feel stuck in your current hustle and sense that the corporate world is not for you, then consider wholesaling real estate. It demands some effort and persistence, but as Joshua demonstrated, it can become a launchpad for real changes in your life and a boost for your personal growth.
Remember to continue pushing through and take action — even if the end seems nebulous. Your efforts will pay off in due time.