BiggerPockets

First Wholesale Success

Monday, September 13

Here is the success story of my first wholesale deal with my business partner Chris Minchin.  I hope this will help other wholesalers who are new to the game like myself.   

We started with $200 left between the two of us and no jobs!  The money was used to buy 100 bandit signs and we wrote "We Buy Houses CA$H / ###-###-####"  and they were handwritten using a magnum sharpie.  We put the signs up on every corner and blanketed our neighborhood on Friday night to make sure they would stay up the entire weekend.  This got us around 4-5 good leads and a meeting with a desperate seller. 

The seller owed 30k on their mortgage and was willing to sell for what they owed on the home.  It was a 3 bed / 2 bath wood frame home  built in 1945 (Ouch).  We put the property under contract for 30k using our standard Far Bar / As Is contract here in FL.  The homeowner was fully aware we were going to re-sell their home to a cash buyer for a profit and was completely happy with our efforts to sell their home!   

After getting the home under contract for 30k (with $0 down by the way)  we made about 30 more bandit sings to put out that said "NICE HOME  /  39K CASH  / ###-###-###" and received about 40 phone calls from Saturday - Monday from people who were interested in the home.  5 days after meeting with the homeowner and getting the property under contract we had a cash offer of 35k.  This person wanted to buy the home for their son to live in and could pay cash.  We had them sign a simple 1 page paper that stated we were assigning the contract to them for a fee of 5k. 

Once they signed our paperwork we brought both the seller and the buyer to the title company where they closed on the home in about 20 minutes.  Gotta love those cashiers checks for 35k!  The title company then gave us a check for 5k and we were on our way!  The rest paid off the homeowners mortgage and both parties were thanking us for our help!! 

Thanks to BP for teaching us how to get this deal done!  

Comments

1. 

   Jerry Puckett Reply
   over 1 year ago

   Congradulations, that's exactly the way it's supposed to work. And it just keeps getting easier because your confidence grows.

2. 

   Jon K. Reply
   over 1 year ago

   Good work Johnny. Can't wait to hear about your next one.

3. 

   Shane M Reply
   over 1 year ago

   It seems like the way you explain (or don't explain) what you are really doing is what would make or break the deal.

4. 

   Shane M Reply
   over 1 year ago

   Even signing one extra page can be discouraging.

5. 

   Brooks Conkle Reply
   over 1 year ago

   Good stuff Johnny! They may not all be just as smooth, but the checks all cash the same. But when you have a seller that's easy to work with and an end buyer that's easy to work with you're golden!

6. 

   Ken Sheppard Reply
   about 1 year ago

   This is very creative. We havce been in real estate for over 25 years. You can read our profile on this site. We are buyers and if you have any deals that need funding, please call us.

7. 

   Brandin Johnson Reply
   about 1 year ago

   congrats bro!

Post a Comment

Your Name:
Your Email:
	Subscribe to comments?