As a real estate wholesaler, one of the the quickest and easiest ways to put cash in your pocket is by networking with other wholesalers in your market and partnering up on deals. In my city there are more wholesalers than you can shake a stick at, but instead of looking at them as my competition, I see nothing but opportunity!
Just yesterday I was able to wrap up a deal that I am partnering on with another wholesaler. I have about 3 hours of work in this deal, zero risk, and will end up making a quick 3k for my efforts!
Here’s how the deal went down:
Monday morning I got an email from one of the wholesalers whose buyers list I am on. He had several new deals available, one of which was in a neighborhood where I have done quite a bit of business over the last few years. I recognized right away that this was a pretty good deal, and figured I could probably sell it to one of the buyers on my list without too much effort. I called the wholesaler up and asked him if he could do any better on the price (he was asking 35k for it). He said he would take 32k net.
Monday afternoon I signed an option agreement with the wholesaler which gave me the right to purchase the property for 32k, and then I immediately began marketing the deal to the buyers on my list. I also put a few ads up on Craigslist, and made 20 signs to place in the neighborhood where the house was located.
Yesterday afternoon I got a call from an investor who saw one of my signs. I gave him the property address and he ended up calling me back within the hour and making an offer of 33k (I was marketing the deal for 36k). I told him 35k was the best that I could do, and after a few minutes of back-and-forth negotiations, he finally agreed to pay 35k for the property.
After executing a purchase contract with the wholesaler for 32k, I then met up with the investor and signed an assignment of contract agreement with him for my fee of 3k, and also collected a 2k deposit. The deal is scheduled to close this coming Monday.
While this isn’t a homerun payday by any means, I’m still pleased to be putting a few grand in my pocket in exchange for a few hours of my time!
Photo: Refracted Moments ™
Related posts:
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- How to Sell Your Wholesale Real Estate Deals in 7 Days or Less
- What Are Real Estate Deals and What Aren’t Deals
- The Cheapest and Easiest Way to Find Buyers for Your Wholesale Deals
- How to Close REO Wholesale Deals (Part 1 of 5)
Article Author: Stephani DavisStephani has written 47 articles for us.
Visit Stephani's Website: http://www.flipthiswholesaler.net/
Formerly a bartender, Steph Davis is now a full time wholesaler in Tampa, FL. If you'd like to get an idea of what it's really like out there in the trenches, head on over to her blog: FlipThisWholesaler.net!
Joshua Dorkin
{ 11 comments… read them below or add one }
While not a huge deal, I don’t think anyone is going to complain about making a quick few thousand bucks with as little effort. This is a great example of why wholesalers shouldn’t think of others as competition, but potential partners. Thanks for sharing, Steph.
Awesome, Steph. $1000 an hour…pretty good pay day in my book!
A perfect example of how having the right network can pay off. Thanks for sharing, Steph.
Hi Steph,
Very cool. I liked how you broke down that story. Very easy to follow, and straight forward.
To speak further on Alex’s comment, power no doubt exists in one’s network!
Awesome story. Keep up the GR8 work!
Neil.
Sounds like a home run to me. 3k in 3 days. Break it down in hours and I’ll be you beat out the top CEOs out there. What a couple of emails and phone calls. I love real estate
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Great story Steph! Congrats!! Not a lot of people in North America make $3k in a month so for a few hours work it’s pretty awesome … but we all know it took you longer than a few hours. It’s taken a lot of effort to build your network to this point … and that is why it’s so important as a real estate investor to ALWAYS BE NETWORKING!!
Awesome story – I like how simple you made it for all of us!!
I think about doing something similar all the time Steph. 2 questions….
1) Did you have to give the original wholesaler any earnest money for the option?
2) Is there really no risk? I mean you could get stuck if you execute your option and then your buyer backs out at the last minute (literally).
Great post though!
Hi Scott,
I didn’t put up any deposit. The option is more of a formality than anything else just to keep me out of trouble since I don’t have my license.
I collect a 2k non-refundable deposit from the buyer, so if they back out they are going to lose it. The only thing I would lose if the end buyer backed out is the time I spent on the deal.
Since you are licensed, you could avoid all of this option and assignment business and just get paid a commission instead. Would be much easier.
Steph
Ok Steph, I guess I am a lil slow today. what kinda license are you referring to in the post with Scott.
Hi Xavier,
I’m talking about a real estate agent’s license.
Great Deal…I have one question. Do you collect the deposit check in your name or do you both go to the title company that same time to put it in escrow? I’m confused on howyou collect the deposit and who it’s made out too. Please advise.
Thanks
Frank
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