A while back I posted about my First Chicago Wholesale deal here:
Well...we finally closed it!
In a nutshell...
3/1 Brick SFH + basement (1/.5)
My purchase price: 20k
End buyer's price: 25k (ARV 80-90k)
My assignment fee: 5k
Just a few of the MANY lessons I learned:
1. When just getting started, go out and see as many houses as you can to try to learn values in an area. (ex 100 house rule). There's just no substitute for learning your market. In the first 2 weeks of marketing I literally went door to door and put out over 1200 flyers and 100 business cards, talking to everyone I met, and asking about house values and rents in the area. This was not fun to do, but incredibly helpful to learn values.
2. With that in mind...start with a smaller area or zip code and find the "big fish" cash buyers in that area. I wish I had done this sooner. Having a few solid buyers before you start marketing will save you a ton of time and headache. I ended up finding my buyer only after putting out 40+ bandit signs and talking to dozens of tire kickers first. Thanks to Steph Davis from FlipthisWholesaler.net for this advice.
3. Explain to sellers how you arrive at the number you quote them for their equity. Seller originally asked 50k, and I thought he was going to balk at my low offer.....It was a a lot easier to swallow once I explained step by step what my costs were, the extent of the rehab needed, and how much profit I would need to make.
4. Get a proof of funds from EVERY cash buyer that wants to see inside. After dealing with tons of time wasters, I realized that I only wanted to deal with cash buyers, and ANY REAL cash buyer has NO PROBLEM showing you their bank statement. Thank you @George Foster for your advice on this one!
5. "Don't Assume a Damn Thing!" - Thanks again Wendell for the timely Giuliani quote! So many mistakes could have been prevented by not making assumptions.
6. Network, Network, Network!
Without leveraging the knowledge and wisdom of colleagues and friends that I've met here on BP and from my local REIA group, I wouldn't have been able to do this deal.
@Wendell De Guzman was instrumental in helping me figure out an offer and rehab estimate, and although we weren't able to partner on this one, my hope is to do more "Co-opetition" deals with him in the future.
Many others also provided their expert advice on rehab costs and how to deal with the pre-probate issue. @John Weidner
Thanks to everyone here on BP and at the Chicago Real Estate Investors Meetup for the encouragement and advice. @Brianna Schmidt @Timothy Riley @Mark Ainley, @Shara Carlton and Joe J. (is he on BP yet Brianna?!)
On to the next one!
P.S. Here's pics of the house and the checks I received as evidence. :-)
@Ana N. - I am SO EXCITED for you!!! This meetup is going to be a time for celebrating!
Congrats again and I am also so proud to see almost every person you called out is from our meetup group. I love the attitude that everybody has about helping others without being snarky. See you next week! (and no, Joe hasn't joined yet. we will have to tag team him - you and I seem to be good at that!)
Great work and it pays off !
Whoop whoooooop!!!!!! Go Ana!!
Good tips too!
@Ana N. It's always very exciting to see investors do their first deal and share the success with everyone. That helps inspire and motivate other new investors. I remember when I first joined BP before I bought my first deal and I would read up on other people making deals and it would get me motivated to go out and make some deals.
Best wishes for your continued success.
@Ana N. Congratulations Ana!!! You hung in there and did it!!
Thanks @Sharad M. !
I definitely felt the same way. Watching others succeed and share their successes here on BP has definitely motivated me to go out and take action!
I hope I can do the same for other newbies just starting out as well.
It definitely takes hard work and persistence, but it can be done. We're all examples of it!
Hope to see you at the meetup next week, since I didn't get a chance to talk to you at the last one! :-)
Thank you @George Foster ! Thank you for everything... starting the meetups with , comps, advice, referrals, mentorship, friendship, and generally helping me keep sane when things got tough!
I owe you,@Wendell De Guzman , and Joe J. the highest gratitude.
Looking forward to seeing you at the meetup.
Updated almost 4 years ago
Thank you for starting the meetups with Brianna****
Thank you @Bradley Benski !
Awesome news! Congrats!!!
That's awesome. You give good advice. Thanks for sharing.
@Ana N. Woohoo. Congrats lady. I cant make it next week but we'll toast one of these days to an awesome job. All that hard work paid off. On to the next one!!!
That's great! Really happy for you.
Thanks @John Weidner ! See you next week? @Brianna Schmidt and I will be looking for you ;-)
Thank you Carolina NA . I'm glad you found the tips helpful. Please let me know if you have any questions. I'm an open book and willing to share what I've learned.
@Raji Ahmed so bummed to hear you can't make it. We will definitely need to grab coffee or drinks soon and celebrate both of our deals!
Thanks @Troy Best !
Congrats Ana, that is really exciting.
I'll be at the meet up but late due to a work travel. See you then!
Well done, Ana! The rising tide raises all ships!
Congrats Ana on your first deal! Sounds very exciting indeed.
Congrats to you...I'm waiting to see that next flyer...
@Ana N Congratulations on this great milestone for getting a deal closed.
Thanks for sharing your experience and your tips!
Team work makes all the difference... we can not just do these all alone.
All the best to the next now:)
Way to go, Ana! And thanks for sharing your reflections on your first deal.
Here's to many more!
@Ana! Congrats! Yes, yes, yes! You're definitely a hustler. And definitely encouraging for me to get after it. Nice job!
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