How I Wholesale Houses Anytime, Anywhere – Working Just 10 Hours a Week
Hang onto your hat, because you’re about to get an inside look at how I’m able to own and run a very successful and profitable wholesaling business…with only around 10 or so hours of my time involved each week. And because of this, I get to actually enjoy my life, spend heaps of time with my family, travel frequently to amazing places and even surf to my heart’s content (I love surfing!).
But hey, if you’re already thinking, ‘Yeah right, sure, sounds good to be true…’ let me just say that I get that. I hear ya…
I mean, even I struggled with believing anything like this was actually achievable – having an ultra successful investing business without investing an ultra amount of time. I remember so well how my first months in all this were filled with doubts, frustrations and traditional (but limiting) beliefs too – at first.
But not only did I not let myself give up, but all these things actually led me to discover a new path for wholesaling houses – one that most investors aren’t really dialed into yet. Turns out it’s a much easier path actually – and one that still makes me piles of money but with a fraction of the time and effort others have to put in.
Would you like to hear my story? And how I’m able to make a full-time income wholesaling houses for quick cash with only a part time effort?
Okay, let’s do this…
I’ll open up and lay it out for you. But fair warning:
This is unconventional and may rock a few boats.
I’m not sure how long this will be, but if you hang with me, it’ll not only be worth your time, but you’ll be challenged to reconsider your own approach to wholesaling houses as well.
Hey, I’m Justin Wilmot
I’m also known as “the 10-Hour Wholesaler”, and I’ve been in real estate investing for over 10 years now – and through the School of Hard Knocks, the roller coaster that is REI and whatever other cliché you can think of – I’ve been there, done that… but with some determination and creativity I finally figured it all out.
And just let me tell you, it has been life changing.
Today, I run a very successful, high-profit real estate wholesaling business. We do loads of deals on a regular basis, consistently, in several markets – all remotely from anywhere on this lovely planet.
I have a distant memory what a 9-to-5 looks like anymore (thanks goodness!) because of the way I have my wholesaling business set up today.
But, before I dive in and walk you through my exact 3-step process, I think it could help you to understand better where I came from and how I got to where I am today. Plus, I’ll explain:
How wholesaling houses goes for most people
What I think is wrong with it (at least for people like me)
How I see people typically screwing it up
My exact 3-step process
And really a whole lot more. So let’s get to it…
What had happened was…
Back in the day, I wanted to be all gangbusters and show this wholesaling thing who’s boss. Right?! I was eager, motivated, ready to take the bull by the horns…
And like most newbies, it turns out I was struggling just to get my first deal done.
Maybe you can relate.
After all, I was still trying to learn the fundamentals of wholesaling like contracts and assignments and earnest money deposits… not to mention needing a budget for marketing and trying to figure out how to approach sellers, negotiate and make offers.
It was A LOT.
But, perseverance paid off and when I finally landed that first deal – and oh, let me tell you – that was one of the best feelings ever. At that point I was convinced this was going to work. And it did… I found more deals, stumbled my way through landing a few of them, and my exit strategy was doing a lot of fix & flips and some ‘regular’ wholesale deals too.
But things didn’t stay all rosy…
Before long I noticed my experience quickly morphing from ‘Yay, this is fun and exciting!’ to daily, tedious, exhausting drudgery. It was becoming a grinding chore. Yuck.
So, I was up way too late one night working when it dawned on me:
This is not what I wanted.
I mean sure, I was making good money doing deals and while it wasn’t dreaded a J.O.B. – I saw a lot of other people following the same path and doing about the same tings. But this is way more daily hustle than I originally envisioned for myself.
I remember when I was suddenly hit by all this, I knew I had to make a change.
The lifestyle I planned for me and my family did not include working full-time hours. It did not mean being stuck in the constant, day-to-day hustle of flipping houses.
Why? Because this is not how I define success! Look, I fully realize that some fine, respectable investors do define their success by the amount of effort and time they put into their work. And that’s fine – for them…
For me, I define success as the freedom of choices and lifestyle I’m able to create and enjoy. I want a business that serves my lifestyle, not a business that controls my life. I believe there’s no need to sacrifice an enjoyable life of time spent with family and doing the things I love (SURFING!) to build and maintain a profitable thriving investing business.
I was thinking, ‘I want it all, I want it all, and I want it now…’ (Bonus for you if you know those song lyrics.)
I realized that to make this happen, I had to make a big play here – I dug deep and came up with a game changing plan – one that, as I said, lets me enjoy a solid, full-time income with a very part-time effort (my 10-Hour Wholesaler approach).
So basically I created a business based on my lifestyle-centric definition of success – one that supports my values and how I want to spend my time every day, which happens to be (1) hanging out with my family more and (ii) surfing all I want. Most days, I’m on the water far more than in an office.
Check this out – thanks to how my 10-hour wholesaling business is set up, I was recently able to take fam for a month-long trip to a beach. While I was riding the waves, my wholesaling business brought in $30k. Alls I did was a few hours of ‘work’ per day from my tablet and laptop using WiFi on the beach. I never saw any properties, never even spoke with sellers or buyers… all thanks to my 10-Hour Wholesaler business model. For reals. That’s me in my ‘office’ below.
Now I’m not saying all this to be a bragger… I’m just saying there’s an easier way to do this wholesaling thing than you’ve probably learned up to now. And if this surfer dude can do it – you can do it. That’s my point.
Before I pull the curtain back for you, let’s back up a second and talk about the flaws I found with traditional wholesaling.
Wholesaling 101 – The Good and The Bad
Let me first say right out of the gate that there is simply no easier or better way to bring in cash quickly in real estate than wholesaling houses.
Contrary to what some people and the popular reality TV shows seems to think, the world of ‘flipping properties’ is not simply limited to rehabbing – that’s called a ‘fix & flip’. And yes, those deals tend to make more money, but think of it this way…
Rehabbing is a slow dime, while wholesaling is a quick nickel. And personally, I can make a whole lot more raking up all the quick nickels around me than waiting around for a slow dime to pay off.
Nowadays basic wholesaling is (i) finding a seller with a distressed property or who’s in a distressed situation, (ii) getting a contract to purchase their house at an appropriate discount, then (iii) selling that contract to another cash buyer for a profit.
A critical part here would be that your flipping the property ‘as-is’ with absolutely no repairs involved. At least that’s how most wholesalers I know do it.
Your end buyer might be a landlord who’s gonna rent out the property, or he could be a rehabber who’s gonna fix & flip it, or maybe even someone who’s looking to live in the property and is interested in the sweet deal you’re offering. Your profit is the spread between what you and your end buyer each paid.
For example, you get the property under contract for $30,000 and sell it to an investor for $40,000 – you just made a quick $10k. Sounds good to me.
So the big key to traditional wholesaling is finding properties you can put under contract for cheap enough so there’s still room for your end buyer to get a killer deal on the other side while you score a tidy profit in between.
Now, there’s more to wholesaling, of course… like how to find deals, the art of negotiating and making offers, different ways to handle closing – but what I’ve given you is the basic premise of wholesaling properties.
Now I hate to be a downer, but…
For me personally, I found that traditional wholesaling does have some challenges and “issues” that I don’t like.
First Dislike: The Marketing Budget
To have a steady stream of distressed property deals coming in, I found that I still had to routinely spend a chunk of change on marketing for motivated sellers. Consistency is key. That can be expensive and really get away from you if you don’t watch it.
Next: Awkward Conversations with Sellers
Easily one of the biggest fears of newbies. There is a right way and wrong way to speak with sellers, negotiate and make offers. You have to muster the courage and skills to push past that fear and learning it all takes time. This can be learned and eventually mastered, but it takes lots of time…and practice…and work. Screwing this up means you never even get the deals, much less flip it to someone else.
And Then Also, Earnest Money Deposits (EMD)
Depending on the type of deals you’re trying to do, you’ll often need an EMD and/or or proof of funds letter for your offer to even be taken seriously. Do you have immediate access to either one of them? How quickly can you get them?
Too Much Dang Work!
I’ve already made it clear that I got into this because I want to create my own reality, which lets me enjoy a lifestyle-centric business that gives me a full-time income with only a part-time effort. And wholesaling the regular way just didn’t cut it (for me).
For me, these became a real drag. Because of all the aforementioned issues, I eventually realized that the traditional approach to wholesaling houses wasn’t quite the right ticket for me. It just kept pulling on me more than I wanted. So I decided there must be a way to get around these challenges.
That’s when I crafted my 10-Hour Wholesaler plan. I’ve been tweaking and perfecting it over the years, and I’m thrilled to say that I actually succeeded in creating a wholesaling business that requires only part-time effort but gives me a full-time income.
10-Hour Wholesaling to the Rescue
My streamlined method is based on a few principles, which basically involves the fundamentals of wholesaling, mixing in virtual deals (from remote markets) and playing a little matchmaker. It all happens by doing these 2 big things:
- Delegating all the task-type work that comes with wholesaling – finding motivated sellers, negotiating and contracting properties. Delegating and outsourcing is just smart business, people. (More on that in a bit.)
- Leveraging other wholesalers and OPI (Other People’s Inventory)
So about this OPI…
Nope, sorry. That’s “Opie”…I’m talking about OPI – short for Other People’s Inventory.
See, as I analyzed my business I quickly discovered that without question, the easiest deals – the low-hanging fruit that still made me a sweet chunk of cash – were the deals in which I played matchmaker.
Basically, I have built my entire wholesaling business around leveraging other people’s inventory and connecting it to my personal buyers list.
Here’s how it works…
Start backwards: I actually prefer starting with the buyer first. So I zero in on a bunch of local folks who are actively buying investment properties.
Politely interrogate: Next I reach out to them directly (or get them to reach out to us actually) and ask them to tell us exactly what they want–their specific criteria for “a solid deal”.
Make the magic: Once I have down what a buyer wants, next we go looking for deals that will match their criteria. This is where the magic happens.
Tap into OPI: This is where OPI comes in, because now we’re actually ‘shopping’ through the properties that other wholesalers have under contract. So you find someone who has a solid deal under contract but, for whatever reason, doesn’t have a buyer. They’re all around, trust me. So yes, our default inventory is other wholesalers’ deals.
Match-make: Here’s where you enter all helpful and problem-solvey (yep, made up a word). Once you find (A) cash buyers with no deals and (B) wholesalers with deals but no buyers… well, guess what’s next? Marry your sweet cash buyer to another wholesaler’s sweet deal. You’re bringing something of value to the table that the other doesn’t currently have, and you get a nice piece of the pie for doing it.
Obviously there are some more details involved in how we accomplish all this, but from a high level, that’s really about all there is to it. And it’s my absolute favorite approach to wholesaling.
And why it works…
Frankly I’ve realized that lots of other wholesalers either don’t know how to market their deals very well, or are too lazy or disorganized to create and cultivate the quality buyers list that we will. Once you know how to do it the way we do, it’s pretty darn easy and systematic… but I just know for a fact that most others won’t.
So I’ve built my model on stepping in, connecting the proverbial dots, creating a win/win and getting paid in the middle!
And here’s kind of the Pièce De Résistance: We get the wholesaler who controls the deal to actually assign us their equitable interest.
This is the secret sauce, and the big honking difference between the way many other wholesalers try to “co-wholesale” deals and a true JV wholesale deal – it’s documented, legit, above-board and done with the full knowledge and permission of the originating wholesaler.
Oh yeah, and I also don’t crank up the price for my buyer.
The way I find cash buyers, chances are pretty low anyway that my buyers are also already connected with the wholesalers who’s inventory we’re leveraging. But on the off chance that they are, there’s at least zero chance they’ll be pitched the same property at two different prices.
How can we do this? It’s simple: We get the wholesaler to agree to cut us into their portion of the profit. So if their original contract is to buy for $10K and they’re offering the property for $20K, we’ll end up offering it to our crew for the same $20K and split the $10K profit when it sells.
Pretty sweet deal, huh?
I hope by now you’re seeing that the value you bring is special and impactful to BOTH sides of the deal…
You’re helping good cash buyers connect with smoking deals they want, and…
You’re helping other wholesalers sell their deals to buyers who they probably would have never had contact with.
And often these cash buyers aren’t ‘full-time experienced investors;’ they’re mom-and-pop people who probably don’t even truly understand the full scope of wholesaling and aren’t connected to the bigtime local ‘professional’ wholesalers.
How you can royally screw this up
I’ve not only been doing things this way for years but I’ve also been teaching others how to set up and run their wholesaling operation the same way. But not everyone gets it at first. In fact, lots of people notice what I’m doing and give it a whirl without really understanding and end up flailing big time.
When you get put on a bunch of other wholesalers’ notification blasts (email, text, voicemails), and you market their deals publicly as if they are not only your own but at a higher price… This is a BIG no-no for 3 big, fat reasons:
Strike 1 = You have no formal agreement in place with the original investor.
Strike 2 = You can’t sell someone else’s deal without a formal agreement in place.
Strike 3 = You shouldn’t mark up the price. Big mistake and not my thing.
The 3 Steps in “10-hour wholesaling”…
My approach is effective yet simple and streamlined into these steps…
Identify your target market.
Build your pipeline of leads.
Outsource the heavy lifting.
Let me dig into these a little more for you real quick…
STEP 1 – IDENTIFY
This is a crucial first step. Choose the wrong market and you shoot yourself in the foot before you even get started, and then you have to walk up a very big icy hill with a shot foot. Sucks, man!
So you must carefully choose a market with the easiest, lowest-hanging fruit.
How? Just look for 2 things:
Thing 1: You need to see active wholesalers in the area.
Thing 2: You should also make sure there’s a healthy source of active cash buyers.
Any market with those 2 components is ideal for 10-Hour Wholesalers to clean up.
Personally I tell folks to just do a little online recon to find a market that works… some simple keyword searches and you’ll be well on your way to choosing an ideal market in about 15 minutes or so.
Now, we build. But you know what – you worked hard for those 15 minutes, so go take a break. I’m gonna grab the next serious wave and then come back in. Did I already mention how much I love surfing?!
Ok, I’m back now. Let’s move on to…
STEP 2 – BUILD
Here’s where you create and cultivate a solid relationships on both sides of the deal, starting (as I said) with cash buyers and then other active wholesalers for their OPI.
Remember: Finding your buyers first allows you to figure out exactly the kind of deals you’ll be aiming for, and then go ‘shopping’ through OPI for those deals.
Here’s a few ways to I typically go about finding cash buyers in a new market:
The MLS – You can typically extract all the cash sales in a certain zip code within the past 180 days or whatever time frame you want. Then simply reach out directly to the new owner (or to the agent who helped them buy) and see if the buyer’s interested in another sweet cash deal. Easy peasy.
Fiverr – Not joking here, I’ve actually gotten cash buyers from Fiverr.com. It works like this: Just type ‘real estate cash buyers’ in the search bar, and you’ll get back a list of folks willing to sell you their cash buyer’s lists. They may be compiling these lists themselves or gathering them from some other service. I don’t really know or care. It’s instant cash buyers and it’s worked for me.
Zillow – This is an unexpected one, but it’s worked for us. We use Zillow to search zip codes of neighborhoods that have rentals and fix & flip properties. Then we choose the least expensive recently sold properties (our new leads), then have a virtual assistant (VA) research and supply us with the owner’s contact info. Then we simply reach out and invite the person who just bought the property at a steep discount and ask them if they’re interested in more like it. Boom.
Your Local REIA – This stands for your local Real Estate Investors Association (or club) and it’s a local watering hole for many cash buyers. If your target market is within reach, just show up at a meeting, then stand up at the ‘deal-makers’ segment and pitch that you’re interested in making connections with qualified cash buyers interested in local smoking deals. Just keep networking your butt off there.
Local Ads and Hand-Written Signs – This one’s kind of sneaky. It’s no secret that one of the most effective ways to sell an actual wholesale deal is simply putting 3-5 handwritten bandit signs in the area around the property you have under contract. You will get calls from this sign, which should look something like this
It also works great to place a little ad for your deal in a local newspaper. Works great.
But what if you don’t have any deals yet? Hmmmmm…
Well that’s what makes this tactic a little sneaky…just place the signs and ads anyway! And when people call, you can say something like
“Ah snap, this property’s not available anymore… (which is totally true by the way) …but I’ll tell you what, I tend to get lots of distressed properties like this in the area at big discounts. Would you like me to call you directly when I get the next one to see if you’re interested in it?”
(Wait for their, ‘HECK YES!’)
“Ok great, give me your phone number…oh, and help me understand specifically what makes a solid deal to you so I’ll know it when I see it and can call you first…”
You see what I did there? The ads and signs can either be used to sell an actual wholesale deal or as bait to secure cash buyer ahead of time.
All these just scratch the surface really. There’s really tons of ways to get buyers for your wholesale deals, but that’s plenty to get you started – I’ll save the rest for another time.
Once we have a list of cash buyers, we (and by we, I mean my Operations Mangers – yep, delegating at its best) mail them a results-tested, direct-response mail piece. When the buyer calls in, my team uses our killer script to gather the info we need and input it into our database. These calls used to come to me directly, but now I’ve trained my people to handle it.
Then the fun happens – you begin matching them and sending them deals that fit their criteria.
Getting local wholesalers on board is a similar process handled by my Ops Man…
Find them using the methods I mentioned above. Using my carefully written script, propose a win/win scenario of doing business together. Gather details on their current inventory and start the magic: Take all these sparkly new deals and match them up to your eager cash buyers.
STEP 3 – OUTSOURCE
To put it simply, outsourcing and delegating has enabled me to spend less time and effort on my work and more time on my life with my family and, of course, surfing.
This is really one of the biggest factors in my 10-Hour Wholesaler strategy – a well-trained Operations Manager.
See, my Ops guy, who gets commission-based pay earning him between $4k-$9k per month for about 30 hours per week, is a dream…
He’s super organized. (which I am not.)
He’s a great manager and is awesome at time management. (I can work on those.)
He actually enjoys sitting behind a desk working on the computer. (I like to surf. On waves. In the ocean.)
Using my Delegation Sheet as his guide, he handles all the day-to-day tasks…
- All aspects of working with cash buyers and wholesaler investors: finding them, contacting and chatting them up
- Manages data and spreadsheets and all key contacts and communications
- Analyzes new leads/deals from wholesalers
- Matches new deals with buyers
- And then some…
Yeah, that’s a lot. So what do I do?
Well, because all the heavy lifting is taken care of, I get to spend my work time focusing on my highest and best use:
- Choosing new markets
- Advising my team
- Making strategic decisions
- Leading my team’s vision and goals
- Making sure the magic keeps happening
And by now you know that this leaves me with a lot of time to not spend on my business – surf’s up, anyone?
But, I can hear the Peanut Gallery right about now…
I get it and here’s the solution, which I lay out carefully in my 10-Hour Wholesaler strategy – find a qualified person; structure your working arrangement with them to minimize your risk and out-of-pocket expense; and provide them the training, tools and resources to run your business correctly.
This factor right here – is the breakthrough most investors are reaching for. It allows me to be the high-earning, part-time CEO and not the weary Jack of All Trades. I now believe it’s just how a thriving, lifestyle-centric wholesaling business should be run.
That’s a wrap…hang ten…
Whew – I told you that was an explosion of information. I hope you got a little something out of this, and even more that you’ll consider incorporating some of this into your own wholesaling endeavors.
You should now understand not only the basics of wholesaling, but also some of the flaws I find in doing it the traditional way. You should also hopefully see more clearly how and why my 10-Hour Wholesaler method works so well for me.
Honestly once I realized how crazy simple yet lucrative my wholesaling business could be by focusing solely on my less ‘traditional’ approach, well – I never looked back.
Investor – Educator – Entrepreneur – Surfer
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