Weeks 20 & 21 of a Newbie Wholesaler

Guys, Gals, Colleagues, and Friends

I must apologize because I did not write my weekly post last week, so I will make sure I try and cover everything in this post.  

These past 2 weeks have been rather eventful. If you recall I was able to get a new property under contract which I nicknamed the "dirt house". Also I was in the midst of studying for the real estate salesperson license. 

So I have an update on both, and something every wholesaler has talked about it but it has finally happened to me, and it MADE ME SICK...

Dirt House

Ok the dirt house; I call it this because I was in total amazement when I pulled up to the place. This is not to belittle the owner or discuss his circumstances or situation but I will try and paint a picture for you.

I received the call and the gentleman said that he would like to sell his house and that he wanted to sell for 10,000 my first thought was wow in Phoenix this should be an easy deal. They don't come like this often; I consider this low hanging fruit. Everything was lining up perfectly....The house was free and clear so no mortgage to take into consideration, and he was ready to do the deal extremely fast, and he really needed the money. I said to myself great I have the following:

Motivation...... CHECK

Want to sell FAST..... double CHECK

No outstanding debts.......Triple CHECK

I knew the area from the zip code, pretty industrial/commercial area, not the greatest but its  a great rental potential in the area. I viewed the property on google maps..... not appealing to the eye but it had potential, and for only $10,000 we can make this work.

I tell people when going to meet a Seller for the first time always remain objective and be mindful of your non-verbal communication. It was hard for me but I was able to do it. 

The property was falling apart, the ceiling was being held up by mops and brooms "SERIOUSLY" view the pics in the link below. The roof was totally shot and the mold was unbearable and yes this was owner occupied. 

To make a long story short I called him a couple of days later after a really bad rain and told him that I was interested in the property but $10,000 was not an option. We negotiated back and forth and I was able to secure the property for $5800. The ARV was $60,000, the person that help me get started knew an individual that buys these type of properties. We were able to wholesale it without any marketing in 1 day.

The team was able to make a pretty substantial profit on the deal in about 10 days.

Help yourself here is a link of the pics of "Dirt House" https://www.dropbox.com/sh/da1y2d79uno0s5r/AABsX7Bj8ZhDq03UOSzN5McVa?dl=0

Real Estate License

This has always been the great debate......Should I get a license or shouldn't I? I was never opposed to getting my license but I thought there's always other things that I need to do first in order to begin investing. So this was something that I put on the shelf and said I would get to it later. Well like I mentioned before I was awarded the opportunity where someone else would pay for the license.....so great I received favor. 

In my post a couple of weeks ago I discussed how I bombed the first school test, literally bombed it 57%. This could have easily been a time for me to become discouraged and give up, BUT there is more in me than that. I buckled down and really focused an studied and with the help of my supportive wife and family I was able to pass the school test.

Now I am preparing for the National and State Test, so hopefully this time next week I will have great news. 

Finally

My MENTOR (had to capitalize that because without his wisdom I would be still planning instead of taking action), he always told me that before every great success there's always great failures, and after every great success is when you're most vulnerable. You are vulnerable because you tend to relax and ease yourself a little. Here is why I mention this.

I've had some huge failures and modest successes but after my success I had this happen to me that I've heard other wholesalers talk about. They've talked about how they could get a property under contract but they felt with a little more negotiating they could get the deal a little bit better, not to be greedy but to make it more attractive for the end buyer. Well this happened to me and I believe I missed out on a deal because I wanted to test my negotiating skills.

Just a teaser, we'll get into this a little more in depth next week. 

I always thought negotiating was one of my weakest skills, but lately I have been on a pretty good upward trend. I've been reading a lot and trying to piece together a negotiating strategy. 

I wanted to try my strategy on a potential seller and fell flat on my face. Find out how next week and what I am doing to recover.

Remember: "Enjoy your Journey"