Commercial Real Estate Pro Network

I'd like to ask you, Lauren Hardy, what is the BIGGEST RISK?

Lauren Hardy  41:31  

For wholesaling houses, specifically, the biggest risk, I would say I've seen a lot of people do this would be spending too much money on marketing. And by not making any money. I mean, just too much money and overhead expenses, not enough profit, not enough revenue. I see that a lot. There's a lot of people that will listen to a podcast like this and get real excited. And then they'll start a TV ad and spend, you know, $5,000 a month on a TV ad, but they've never closed a deal before. And they don't they don't know how to put a deal together. They don't know how to comp the house out. They don't know how to talk to a seller. They you know, they have absolutely, you know, just don't know what they're doing. And the next thing you know, is they could they go broke. So I think it's the overhead expenses. When you're just starting out. People spend a lot of money trying to get into wholesaling houses, they send out direct mail campaigns, a big one was direct mail campaigns, less people are going straight for TV, but direct mail campaigns, they'll they'll hear on YouTube university to send out you know, 5000 postcards a month, and some of these people they don't have that kind of money to play around with but they'll do that and they'll do it for six months straight. And they'll not realize you know, this isn't going anywhere and you're not just going to get that one deal that got you $100,000 at the end of six months, but they keep going thinking that that deal is going to come and then they just end up you know broke. So I think that's the biggest risk right there.