QUESTION:
I have a friend who recently purchased your HousingAlerts program. You stated that appreciation is the only real estate wealth builder and transactional funding is never the way to “get out of the rat race”. However, I see from this email that you seem to be endorsing another iFlip system for wholesaling SFR’s (Single Family Residence).
You come across as a “no-fluff” realist left brainer, who wouldn’t lower yourself to doing or saying something just for profit or marketing purposes, and I like that. But honestly, my friend who purchased your program last week for around $1792.00, will only be empowered if he buys a property for the long term in an area that your Technical Analysis says is or will be growing in value until it says it is time to sell. And he really has very limited funds to get himself started into confidence.
As a straight shooter yourself, I know that when you solicit others, like myself, to check out a product from a third party, that you will be considered an affiliate and will receive a considerable amount of the asking price paid by any new customer that the third party acquires as a result of your email marketing to bring them to the listening table.
I’m just sharing this with you, because I listened to your webinar with my friend who decided to buy your program. I think maybe my friend, for where he is in the investing world, should have purchased other program first, because I think he needs to make some quick money right now, to begin to have the opportunity to benefit from your Housing Alerts program.
I believe generating leads via bird dogs could well be a major asset to my friends success in the wholesale market and to the degree that everything is automated should be pretty fool-proof, if the management of the automated program is not too difficult to master. I just hate to see my friend purchase program after program that normally do not come to completion for one reason or another and he never gets down to having leads that he can turn into deals and having a buyer’s list to wholesale properties to. Until that happens, he is never going to realize any profit.
ANSWER:
Ken always says wholesaling is like a job; wealth comes from leverage and appreciation. Wholesaling does accomplish a few important things though:
1) Teaches you how to buy/sell and about valuation/appraisal/markets. These are very important skills.
2) Generates some cash flow.
3) Gets you to ‘take action’ relatively easily and w/ lower risk.
In short, he believes flipping houses is the BEST and easiest way to get into the REI business.
The biggest ‘leg up’ for a wholesaler is to invest his/her time/money in a hot, appreciating market. You’ll just spin your wheels and work yourself to death in a crummy market.
There are many guru’s selling house flipping info, and lots of good free info out there (along with some bad info out there). The main issue is usually having the confidence to get started. Having some level of support can really help if your friend is a newbie. A program like this can be that extra push to get them out the door and on their way, rather than buying some expensive, high end coaching service or a $30 book.
