$10k on First Wholesale Deal

$10k on First Wholesale Deal

Developer · Philadelphia, PA · Member since 2013 · 1k+ posts · 902 votes

So we wholesaled our first deal and made $10k, just closed Thursday! I put it under contract and had it assigned in just a few days and it closed 30 days after I got it under contract. I got a call from a mailer we sent out months ago from a nice gentleman that lives out of state. Within a few hours I'd gained access to the house and had a verbal agreement from him to sell at $35k. Huge house (5/2 2400 sq ft) in a rapidly changing area but the house is in really, really rough shape. Holes in the roof and floors, no back door whatsoever, small tree growing out of the brick in the rear on the 3rd floor, etc. Neighbors had gained access through the backyard and were feeding cats out of the house plus storing their stuff in there. From talking to the owner on the phone the place should've been empty. There were boxes of stuff, new-ish appliances, and lots of cat carriers and cat food and bowls. I have to give a shout out to @Mark Redmann because, without his tools and persistence, we never would've gotten into this place. The 6' high stockade fence had dozens of 3" deck screws poking out like barbed wire (both directions, facing in and out, you're not hopping this fence) and holding the boards in place. The back alley was so overgrown we could barely get through and the only spot we could even get to the fence was heavily fortified, again by the neighbors, with copious amounts of deck screws. Nevertheless, Mark busted out his cordless drill, sawzall, and hammer and got us in! 

The backstory is, the owner bought the house 4 years ago to fix up but, due to financial issues, hasn't touched it in that time. The house has deteriorated severely in those 4 years. I emailed him the contract and he signed and returned same day. I then called a realtor we work with quite a bit and gave him the particulars on the property. I think I put it up here on the marketplace and posted on Craigslist as well. I wasn't taking any chances! My realtor was able to put me in touch with a local investor he works with that buys in the area and, after a brief phone call, sight unseen, says "I'll take it". As my partner @David Ross said, it's like he's buying melons at the market. I priced the property right at $45k and he knows the area but I still wasn't comfortable with him purchasing sight unseen. I gave him the lockbox code and told him I wouldn't sell the property to anyone else until I heard from him, but I wanted him to go through it. The place is rough, check out a few choice pictures below! 

He text me the next morning and said, you guessed it..."I'll take it". My realtor set me up with a title company that he uses for assignments of contract and they were awesome. Everything was done via email and docusign and I never left my house for this deal other than to check out the property and put a lockbox on. I didn't even go to closing and the check showed up two days later in my mailbox. 

Can it really be this easy? Yep, except it took almost two years of marketing (off and on and likely poorly done) and a few connections to get to this point so it's not what I would call "easy". For those of you who are just getting started, stick with it! It takes time to learn, make connections and apparently for your marketing to work. This particular mailing went out at least a year ago and it's the only one (from me) this gentleman would've received...because when I got no results I changed my list. Great business plan, huh! 

We've been marketing off and on for roughly two years with no success, probably due to the fact that I never hit the same list twice and never really took wholesaling and direct mail seriously! To date we've spent roughly $4k on mailers and this is our only deal. We are in the middle of a serious campaign now, 5 touches, one every 3 weeks, to the same list. I'll let you all know how it goes! Oh, and we gave the realtor a check for $1k for connecting us with the buyer and the title company that made this process super easy. 

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Specialist · Riverside, CA · Member since 2008 · 382 posts · 72 votes
11y

Nice job! And it just gets easer from here. One of my favorite lines I heard recently was "You'll can make a fortune in 5 years in real estate. It just wont be the first 5 years."

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  • Developer · Philadelphia, PA · Member since 2013 · 1k+ posts · 902 votes
    11y
    Originally posted by @Bhairavi Patel:

    @Troy Sheets YESSSSSS!!!! CONGRATULATIONS! This is an awesome story! It gives us newbies hope for success in the future! Thank you for sharing! Can't wait to hear more from you and about your subsequent successes. On the up!

    Thanks Bhairavi, I really appreciate it. It's a great feeling to have one under our belts and know that, although it's not easy, it does work. 

  • Rental Property Investor · Durham, NC · Member since 2014 · 1k+ posts · 1k+ votes
    11y
    Originally posted by @Doug N.:

    @Troy Sheetsnice job! Risk rewarded.

    I notice OP did not use the word 'checkmate', and that the wholesale shaders are not posting. Coincidence?

     Not using "checkmate" is a part of it.  Another part is the situations are very different. 

    The earlier wholesale involved an elderly man who had owned and lived in his home for many years who badly needed income and was desperate to sell his personal home to make some money to pay bills.  In this instance, the seller was a Real Estate investor who bought the house and was unable to put together the money to complete his rehab.  The investor knew (or should have known) what he was getting into, and he lost the bet he made with himself.  The old man was looking for someone to help him get the most out of his home to help him through a difficult stage at the latter stages of his life.

    Big difference.

  • Investor · Pinson, AL · Member since 2015 · 39 posts · 6 votes
    11y

    Excellent job and a big congrats!! Very encouraging to other newbies like myself, shows how important it is to stay focused! Looking forward to your next success story

  • Real Estate Agent · Southington, CT · Member since 2008 · 5k+ posts · 3k+ votes
    11y

    Nice job @Troy Sheets. 

  • Harrisburg, PA · Member since 2015 · 32 posts · 2 votes
    11y

    Congrats! 

  • Investor · Riverside, CA · Member since 2014 · 351 posts · 220 votes
    11y
    Originally posted by @Stephen McKee:

    Nice job! And it just gets easer from here. One of my favorite lines I heard recently was "You'll can make a fortune in 5 years in real estate. It just wont be the first 5 years."

    One of my mentors says the same thing.... 

    Time is of the essence, I have made the decision to start using more hard money to do more deals.  To leverage what I have and mix it with a loan product that helps me buy more and make more..... by the way I'm in the begainning of my 3rd 5 year period thanks for the good word, there is hope for me yet.

  • Investor · Glastonbury, CT · Member since 2013 · 53 posts · 10 votes
    11y

    @Troy Sheets, great story. Well deserved. 

  • San Jose, CA · Member since 2015 · 1 post · 1 vote
    11y

    Congrats!  Great job and thanks for sharing!

  • Real Estate Agent · Audubon, NJ · Member since 2015 · 36 posts · 29 votes
    11y

    Awesome, congrats guys! Great post as well. Hope to hear more about it at the meetup.

    @Troy Sheets @Mark Redmann

  • Rental Property Investor · Columbus, OH · Member since 2012 · 181 posts · 51 votes
    11y

    Congrats Troy! Great success on first deal. 

    What are your next marketing plans for your 10k?

    Best of luck!!

    Steve

  • Virginia Beach, VA · Member since 2015 · 34 posts · 9 votes
    11y

    Persistence and Patience and Patience and Persistence!  Congratulations!! :-)

  • Developer · Philadelphia, PA · Member since 2013 · 1k+ posts · 902 votes
    11y
    Originally posted by @Julie Doke:

    Excellent job and a big congrats!! Very encouraging to other newbies like myself, shows how important it is to stay focused! Looking forward to your next success story

    Thanks Julie, this is exactly why I post flip diaries and successes like this one. I've learned so much here on BP and met a bunch of great people and I'm excited to be able to give back and hopefully motivate others. 

  • Developer · Philadelphia, PA · Member since 2013 · 1k+ posts · 902 votes
    11y
    Originally posted by @Jim Stoffey:

    Awesome, congrats guys! Great post as well. Hope to hear more about it at the meetup.

    @Troy Sheets @Mark Redmann

    Thanks Jim, look forward to getting an update on your investing too! Did you line anything up? 

  • Developer · Philadelphia, PA · Member since 2013 · 1k+ posts · 902 votes
    11y
    Originally posted by @Steve Baldwin:

    Congrats Troy! Great success on first deal. 

    What are your next marketing plans for your 10k?

    Best of luck!!

    Steve

    Thanks Steve! We actually started a marketing campaign just before this deal came about. I knew I was doing us a disservice by not hitting the same list multiple times so we decided to spend $5k on 5-6 touches, 3 weeks apart, in a very tight geographic area to every door. Our 2nd mailer just hit yesterday; so far no deals but we're confident we'll secure one deal from this. If we don't get any deals we'll probably reevaluate and try again. It's tough finding enough deals on the MLS to build a business so we have to try every angle.

  • Investor/Realtor · Wentzville, MO · Member since 2014 · 846 posts · 431 votes
    11y

    @Troy Sheets

    So what is your plans with the 10k?  Congratulations!

  • Developer · Philadelphia, PA · Member since 2013 · 1k+ posts · 902 votes
    11y
    Originally posted by @Ryan Billingsley:

    @Troy Sheets

    So what is your plans with the 10k?  Congratulations!

    Thanks Ryan! Here's what I said to Steve earlier who asked a similar question: 

    We actually started a marketing campaign just before this deal came about. I knew I was doing us a disservice by not hitting the same list multiple times so we decided to spend $5k on 5-6 touches, 3 weeks apart, in a very tight geographic area to every door. Our 2nd mailer just hit yesterday; so far no deals but we're confident we'll secure one deal from this. If we don't get any deals we'll probably reevaluate and try again. It's tough finding enough deals on the MLS to build a business so we have to try every angle.

  • Real Estate Broker · Indianapolis, IN · Member since 2014 · 3k+ posts · 2k+ votes
    11y

    @Troy Sheets Well done sir!!! I've been watching you for awhile on here and I knew it was just a matter of time! I was in your exact same spot this time last year. I also made the same amount on my first deal! Keep up the good work!

  • Real Estate Agent · Audubon, NJ · Member since 2015 · 36 posts · 29 votes
    11y

    @Troy S. Nothing lined up. Shifted focus to South Jersey and am actually in day 2 of 10 of the licensing class as I type this, for NJ and PA.  I had a hard time finding a good agent, so I decided to get my license to try and work with investors and open up some doors. 

    I'm probably going to post a detailed outline about the class as it progresses. It's amazing how they teach you to act as an agent. Apparently it's not that I've been talking to bad agents, it's that my expectations are too high. But, hopefully that will work to my advantage when I'm licensed!

    Keep movin forward!

  • Developer · Philadelphia, PA · Member since 2013 · 1k+ posts · 902 votes
    11y
    Originally posted by @Ryan Dossey:

    @Troy Sheets Well done sir!!! I've been watching you for awhile on here and I knew it was just a matter of time! I was in your exact same spot this time last year. I also made the same amount on my first deal! Keep up the good work!

     Thanks Ryan, same here, I've watched your progress and it's been impressive! 

  • Laurel, MD · Member since 2015 · 29 posts · 9 votes
    11y

    Congratulations.   Your story is very motivating.   Keep pursuing your dreams.   

    @Troy Sheets

  • Real Estate Broker · Bowie, MD · Member since 2014 · 242 posts · 44 votes
    11y

    Congratulations! I look forward to having the same successes some day!

  • Sanford, FLORIDA (FL) · Member since 2015 · 1 post · 1 vote
    11y

    Congrats!  As a new investor still trying to get something under contract it's awesome to see a success story like this and know that if we keep doing what we're doing we'll get to where we want to be.  Thanks!

  • Niles, IL · Member since 2015 · 27 posts · 2 votes
    11y

    Congratulations!

    Very inspiring.

    Francis 

  • Investor · Gilbert, AZ · Member since 2015 · 30 posts · 13 votes
    11y

    Congrats!!! Must be a great feeling! I'm a new wholesaler in Northern California. I can't wait to close my first deal!

  • Saugerties, NY · Member since 2014 · 98 posts · 32 votes
    11y

    Nice work @Troy Sheets

    You are turning into a multi-faceted real estate entrepeneur

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