Going About My First Deal

7 Replies

I was able to get a lead after cold calling about 10 for sale by owners. The property is a 3 bed, 3 bathroom, 1600 square ft , single family home listed for $29,900 and located in Pocomoke, MD. The property will definitely need renovation. She says she is pretty firm on the price. If anyone knows the market or can help me with what I should do now I would greatly appreciate it.

THIS IS MY FIRST WHOLESALE DEAL

Okay so my first thought after reading this, does the Pocomoke, MD, market have alot of activity in the past 30 days - 6 months? My mentor advises me to stay away from markets that don't have alot of activity. Also you need to determine the ARV, After Repair Value, meaning, if fixed up how much would the home sell for. Also you need to get an estimate on repairs, these numbers need to be as exact as possible with enough room for you to make money wholesaling it to another investor, make sure you take into account soft costs. Also, post this in the wholesaling forum and google Max Maxwell and join his group.

When you say "renovations" what does that mean exactly? It could get costly, you don't want any hidden surprises coming up that kill the deal for the rehabber and for you. It's time to crack open some reading material, I suggest getting some BiggerPockets books on flipping and rental properties, and start watching some videos on home inspectors and general contractors, they will help. 3 bed 3 bath is good because those are the houses that rehabbers are looking for. If you can, walk the property with a GC, the bigger pockets book on flipping writes of a 100 house rule, meaning walk 100 properties, preferably with a GC if you're new.

Wholesaling is marketed as a get rich quick, but in reality, it's not at all. Yeah there are some lucky ones, but if you want to make consistent income from it you need to wear a few hats: rehabber, landlord, agent, marketer, general contractor. If you knew all the things they know, if you did, it would take 15 minutes to analyze a "deal" and how much profit you and your buyer could make from it, and how much to sign the contract for.

These are just my thoughts after doing this for a while, good luck!

@Zaide Willis

Make sure the price of the property plus the cost of the rehab will keep a space for you profit when you do wholesale. Check how much the house worth fixed up and see how much other properties in the neighborhood with similar descriptions are sellers for. The key is in the cost of repairs.

Good luck

@Christopher Sparacino

Thank you, this was very beneficial. I went to a seminar last night and asked the speaker what would she do in my situation and she said DO NOT waste my time with that property or in that city anymore. She went on to explain that the is in the middle of nowhere and was a piece of crap. From now on I will focus on properties that are near attractions and like you said, have a lot of activity.