Making Money At Wholesaling?
can anyone provide imput on the average income one can make at wholesaling houses in southern california.
the average employment income would probably be about $3,000 per month ... in california.
has anyone made at least $5,000 much their first month at wholesaling in southern california?
thank you for your imput.
Anyone?
Hi I made about $9,000/month wholesaling in MS in 2004. I figure CA would be more than that, since MS is the poorest state and house values were only 20-50K.
Also I was an agressive wholesaler and there as an abundance of homes. I made typically $2K-$4K per flip.
I also wholesaled vacant land in South Florida and could average $3,000 a flip at one per month or two. That might be closer to South CA. these days though the flipping market is tough due to the fluctuating prices.
My suggetion is to rehab and retail. Wholesaling you need to do too many homes to make a good return in my experience.
Elvis is gonna sing the national anthem? Where did you hear this?
I knew he was still alive...
Gotta get some tickets...
Thank you bradford!
Slight clarification- bradfordtm got a little caught up in talking about equity and made a typo- ROI is return in investment, not return on equity. As he says, this is a rather complex calculation as so many factors are involved, and it is impossible to get an accurate number until after you sell, because only then will you know how much appreciation there has been. Since appreciation can play such a large role in your ROI, using ROI to evaluate a potential investment is of limited utility- it is pretty much a guessing game.
How much will my property appreciate? What will capital gains taxes be when I sell? Will current real estate tax benefits continue through my holding period? Will rents increase? Will my interest rate change? How often will my property be vacant, and for how long? Will I get a bum tenant who burns me badly? Will my insurance go up, and how much? Will the furnace break? Will I have to repaint between tenants? Will I get sued?
If you can answer all these questions and many, many more, then you can calculate your ROI in advance. Me, I just make sure I am making money now and worry about ROI when I sell- did I do well, or did I do really well?
Chris