Updated over 6 years ago on . Most recent reply
My First Wholesale Deal. Started From Nothing
Investment Info:
Small multi-family (2-4 units) wholesale investment.
Purchase price: $40,000
Cash invested: $1,650
Sale price: $50,000
This was a contract assignment situation.
What made you interested in investing in this type of deal?
The low cost entry. Wholesaling is such an excellent strategy for beginners.
How did you find this deal and how did you negotiate it?
I sent direct mail using all handwritten letters from driving for dollars. Seller responded on my first mailing. Negotiation was quite simple. I asked what the seller was hoping to get for the property. I used the 70% rule w/wholesale fee to come to my purchase price. I explained to him that because of the extensive repair needed, this is the number that worked for us. He was quite understanding.
How did you finance this deal?
I saved money to afford driving, buying envelopes and stamps. My total expenses in D4D from the time I started until the deal closed was about 1200. Then I had to buy a 450 title policy to make the deal work.
How did you add value to the deal?
Brought a screaaaaming deal to an end buyer, and helped the seller move the property quick and easy
What was the outcome?
Closed in 2.5 weeks. Picked my check up from title company. It was smooth
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
There were no other real estate professionals I worked with.
Most Popular Reply
Great job, Jarrod. You’ll have to talk about this at our next Thursday morning group.