Finally got through the paralysis by analysis and have a wholesale under my belt. I kind of lucked into a sweet deal in a rural community - one acre with a trailer that needs work. The asking price was way under value (like 15%) so I got it under contract then started advertising. I had calls immediately from a yard sign and then showed a buyer the property. Loved it and told me to hold it for him, but as the story goes...didn't end up for real. Next buyer called 3-4 times while I am in meetings at work then when we spoke wanted to meet right away and put a deposit down. Same story, they were not real either. So, I got a bit smarter and told people who were calling to check out the property thoroughly, then call back after. Also, I added a second sign from the main road to direct buyers to the property. Phone is ringing off the hook (that's ok, creating buyers list) and because of the wasted time with the two early prospects, I bit on the first person who wanted to sign a contract and deposit money. They got the price down some, which was not a big deal to me since this is one to learn on, but it turned out a bit bittersweet because the next day I got a full price offer.
Anyway, worked through some title issues, etc. and we are set to close on the 1st. Should net approx. $2,750. Not a huge payday, but I think it's best to leave substantial meat on the bone for the rehabbers to hopefully keep working together. I should probably wait until closing to post, but am obviously excited. I have two others under contract that I am working on now, so will keep the adventure alive!
Thanks for all the great info BP Nation!
CONGRATS!! It's something about that first deal that you never forget.
@Marshall Downs Congrats to you on the deal
I'm trying to get over my paralysis a well. Good Luck
Congrats on your first deal! I am sure it is very exciting.
If you do not mind me asking what learning methods you used to get into the wholesaling side of RE? I am interested in learning more about it, and always feel those involved may be able to offer valuable advise.
Congrats again and may you have many more.
WOW! That's great Congratulations!
Thanks for the congrats all!
Joel - I had a bit of a leg up from two things my Mother gave to me: one was an insatiable appetite for self-education so from an early age I was listening to personal development type stuff in car rides, etc. The second is along those lines...when Mom and my stepdad moved out of the Midwest, she gave me a box full of old tapes of creative real estate strategies. I have literally listened to Ron Legrand cash flow system tapes (yes I said tapes) for months. I have large development experience under my belt, so for a while I was trying to get into bigger projects, but obviously they take more time to connect the dots. When I finally decided to really work at wholesale, the deal fell into place. Of course, there is plenty of good info here on BP...people will share tons of quality advice.
@Marshall Downs That's excellent you got your first deal completed. Good for you! I'm a bit curious how the numbers worked on this deal. If you only got it for 15% under value, how was there room for your fee plus an investor purchase with their rehab costs? Must of had a significantly higher ARV?
Thats awesome congrats @Marshall Downs
From the time you started taking action how long did it take for you to land this deal? Just curious. I ve heard some people take 6 months while some take 2 weeks.
How sweet it is to get that first one!
Congratulations! Best of luck moving forward!
I love it when you mention leave meat on the bone for the investors. That way you can establish long term relationship with the investors. Remember you only need a couple handful of cash buyers. If they like you and they can make money from your deal, they will come back for you. Trying to score a huge pay day on each and every deal will hurt you in the long run.
Keep up the momentum and congratulation on your 1st deal.
Congrats keep pushing
Congtats. Keep doing what you're doing. You never loose money taking a profit. It 's good that you have the rehabber in mind, as then you will establish an ongoing relationship. Keep up the good work.
congrats trying to get on that path also
@Barbara Riley @Michael Campbell @Russell Ponce @Anthony Aguillard @Andrew Syrios @Brent M.
@Griffin Fehrs - I should have made that 15% a bit more clear. I paid 15% of value for the property leaving plenty of room for closing costs and negotiation.
@Stevie Johnson - Hmmm, good question. The lines get a bit blurred as I was looking at other deal types prior to focusing on Wholesale, but I would guesstimate approximately 4-6 weeks.
@Huy Nguyen @John Moore - I have done rehabbing before and have construction background so I tried to price this so it moved quickly and gave margin to the rehabber. Also, I have read those "what not to do as a wholesaler" articles and posts here so thought it made sense not to shoot myself in the foot right out of the gate in wholesale. We all need each other, right?
Excellent job, congratulations!
Congrats on the wholesale deal!
What did you put on the bandit sign? And how did you screen the buyers who called you? Thanks!
Looks like you have a great foundation built for many more deals!
Keep sharing what you've leaned!
My sign simply read "one acre with trailer" then the price. The main road sign had an arrow pointing from a major intersection to the property and the yard sign just had price and my number. Really basic!
As for screening it was as simple as telling each party to go to the property, look around (the back door was open) confirm they knew the price and then call me back. Once people called back I knew they were more than tire kickers and I did not meet anyone at the property after the first two people. All negotiations were done over the phone and the buyer actually wanted to close faster than I could because of title issues.
When you are getting educated it all seems farfetched until the deal is actually happening!
Thanks for the encouragement Joe. Cheers to your biz as well!
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