The 15th Month of New Wholesaler's Journey

It has been a long time since I posted a blog in my personal profile area on BP, not because I've been slacking or not working but I've been blogging exclusively for BP. I wanted to get back to blogging in this area because I wanted to chronologically document my success and failures weekly for those just starting out. I will take a solemn oath NOW, that I will write something each week about my success and failures in investing. 

This is day 465 of my investing specifically my wholesaling journey. I started day one on September 24, 2013 and since then I would like to give you an update on my progress. My first deal was done on October 4, 2013, you may think this is a fast turn around but prior to my official start date there was about 8 months of trail and error and prep time. So if you are in the prep time of your investing career absorb as much QUALITY information about your investment strategy as you can. Get from in front of the computer and go and meet some people, pick up the phone and call someone that is doing what you would like to do. It is easier than you think.

So this is my 15th month wholesaling and lets look back and see what I have done since week one. I want to do this so you know that once you get started you will be able to push forward and begin to produce some fruit from your labor. 

I started birddogging for an investment firm, I got connected with the investor because I was networking heavily and it paid off. That was going good but not good enough with the company within 7 months I was able to make $6537.17, it would have been more but I learned a big lesson about the inspection period; if you exceed the IP and you can not or wish not to close on the house your earnest money is gone. Yup so I learned a $5000 lesson, it was a luxury property this is why the EM was so high. We split the loss 3 ways, and I was able to make up the loss for the company so it was a learning experience that I will never have to learn again. So instead of learning my lesson reading a book and listening to a guru I learned form hands on experience; which is much better to me personally.

These deals were strictly off the MLS, I was doing some mailing in the beginning but the yellow letter thing was getting the phone to ring but I learned that a great form letter works even better and produce a higher quality lead. So there is my 2 cent on yellow letters versus form letters. I LIKE FORM LETTERS BETTER. The form letter on a company letterhead gives credibility. I did not try both in conduction ie...use a yellow letter as a follow up that could make a huge difference. About the MLS deals, I was able to meet a really cool Realtor, I called on a foreclosure listed that his brokerage had listed and he called me back and asked what I was looking for and how could he help. I explained that I was working with a group of investors and he was hungry and willing to put in hundreds of offers a week for me. Although, we closed a few deals the volume was not there and the investors I was working started moving in a different direction. I could have become discouraged and given up, but I reflected back to the money that was made and the little time that was put in, so I begin to keep pressing. 

I pressed my way into a situation where another door was open for another group of investors and they put me to the challenge. I basically screened the incoming calls from the mailing campaigns. I had to speak to thousands of sellers, and this was an opportunity for me to brush up on my communication skills. Oh this was tedious, its now the 8 or 9 month give or take. (I would like to take the time to remind everyone that I was able to do this full time because I have a small rental portfolio and I was living off the income generated from those units. So someone working a full time job this journey would look a lot different). Ok back to vetting calls, I sat for hours calling sellers getting the basic information from them: Why they want to sell, how many bedrooms, bathrooms ect.... Again, this was learning without paying the guru fee. I learned what to listen for and how to respond. I was not going to view properties, or negotiating just vetting calls.

I did this for about 2 months, I would drive 30-40 mins every day to their office to make calls even-though it was not required. They were taking a chance on me and I wanted to let them know that I am willing to do everything I could to learn the effective way to wholesale. I was not being paid unless the Acquisition Manager closed a deal and that took about 3 months before I saw my first check for $2500.  

I'm assuming because of my dedication and persistence, I was awarded with a stack of older leads that I could call on and see if I could negotiate and close a deal on my own. They gave me the opportunity and I decided to do everything that I could do at least pull one deal out of this stack of expired and cancelled listings and old leads. That was exactly what I did, negotiated with the seller over the phone we found and acceptable price point that was somewhat manageable for both parties, and I went to go a view the property. Me and the inspection manager of the company went to the house. I talked briefly with the owner while the inspection manager was inspecting the property. Once I was done talking with the owner I followed up behind the inspection manager because I wanted to know exactly what he was looking at and what he was looking at. Making sure I learn every aspect of the inspection from a wholesalers vantage point.

After the inspection, I was able to get the property under contract. I went back to the house and met with the owner and went the contract line by line and was able to get a signature. After a few days of marketing the property I was informed by one of the primaries of the firm that I would need to renegotiate the price because we had someone who was interested but they wanted the house at a lower price. So I had to think of a way to negotiate the purchase price down $12,000, yup $12,000. Can you say another obstacle, I thought I had this locked up, but I thought to myself it was worth a shot, if I can I pull this off maybe I will be able to view more of the houses and do more negotiating. So I worked we went back and forth, back and forth and finally he accepted and I was able to get the deal closed and wrapped up. I was confident in myself and I said what do I have to loose either way I am learning, with minimal expense (what gas money).

To make a long story short, I am now closing 2 deals a month from start to finish from fielding the initial call to closing the deal and meeting the seller at the title company to secure a testimonial.

So 15 months later I'm doing all acquisitions and making good money while learning the intricacies of the wholesale side of investing. This is the reason I harp on getting out there and meeting people and stop limiting yourself with excuses. 

Next week I will discuss one of my failures that I took pretty hard but I had to immediately dust myself off and go to the next one. See you next week for the next step in my Journey.

"Enjoying the Journey"