Found & Closed My First Wholesaling Deal in 7 WEEKS!

Found & Closed My First Wholesaling Deal in 7 WEEKS!

Real Estate Investor · Washington , Washington D.C. · Member since 2013 · 117 posts · 51 votes

7 weeks ago, I decided to begin learning as much as I could about wholesaling. It sounded like a great way to learn about REI from the ground floor, while building savings to be put towards our first purchase.

So, I started working. I started driving neighborhoods everyday to learn as much about Baltimore as I could. I left my card at every vacant house I saw. I spoke to neighbors to get info on distressed properties, and left my cards with them too. I started a website to legitimize my new business. I began advertising on CL on a daily basis for motivated sellers. I started calling rental property owners to see if they, or anyone they knew, were interested in selling.

To my surprise, I got a call 1 week later from a seller who wanted me to make an offer on his vacant shell. He wanted $6500, and long story short, I was able to talk him down to $2000! Despite catching pneumonia a few days later, and not having 1 single "buyer" on a list, I sold the property 10 days later for $4,000! I know it's not much of a fee, but I was very proud of myself and my first deal :)

2 weeks later, I found out during the title search that the seller owed over $4,000 in taxes and liens on the property :( The seller claimed he had no idea, and tried to back out of the deal. I firmly reminded him that we had a contract where he promised to remedy any outstanding liens on the property, and that I intended to hold him to the contract. I also reminded him that my deal would at least get him $2000 in help with the liens. Lastly, I offered to donate $500 of my fee to assist. Eventually, he conceded and we went to settlement earlier today :)

I want to publicly thank Ned Carey for all of his advice and words of encouragement. He seems to think it was no big deal, but I really wouldn't have had the confidence to keep moving forward without his help. Thank you Ned!!

Just wanted to share my story with everyone. I know my first deal came a lot sooner than is typical, but I was focused with an expectation that I would succeed at this, and voila, I did. On to the next!

My second deal (a crazy story!) will hopefully close next week. Keep pushing everyone!

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Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
13y

Congratulations! Love to hear stories about new folks being aggressive and persistent!

See this reply in the discussion

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  • memphis, TN · Member since 2010 · 16 posts · 0 votes
    13y

    Hey, great to hear your success and congrats!

  • Dayton, OH · Member since 2013 · 29 posts · 2 votes
    13y

    @Ezinwanne, Way to go! Thanks for the motivation!

  • Real Estate Investor · Niagara Falls, NY · Member since 2013 · 65 posts · 5 votes
    13y

    Ezinwanne Hawkins that's great. Keep up the great work and let know about your next deal.

  • Renter · Las Vegas, NV · Member since 2013 · 19 posts · 1 vote
    13y

    Ezinwanne Hawkins congratulations!! Love your enthusiasm and hard work ethic! May more deals come your way.

  • Investor · Sherman Oaks, CA · Member since 2008 · 6k+ posts · 3k+ votes
    13y

    @ezinwayne way to go! Also @ned Carey way to coach!

  • Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
    13y

    Congratulations! Love to hear stories about new folks being aggressive and persistent!

  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    13y

    Ezinwanne Hawkins you deserve tremendous credit for making that deal happen. It is pretty sad when a real estate agent can't even figure out he has to catch up his taxes to sell the house.

    I drove through Westport today. We are both going to be kicking ourselves for not keeping that one in 10 years. 2 blocks from the water - what were we thinking.

    Thank you for the mention.

  • Real Estate Investor · Washington , Washington D.C. · Member since 2013 · 117 posts · 51 votes
    13y

    Thanks everyone. I've pinched myself a bunch of times since yesterday...it feels good to put a plan into place and execute it.

    Ned - Rich and I have already started second guessing the sale lol. The location is a dream...I just wish the property was in better condition :/ I am very grateful for the experience this deal gave me.

  • Title Representative · Washington, DC · Member since 2013 · 25 posts · 13 votes
    13y

    Ezinwanne Hawkins This is great news. I can not wait to hear about your next deal. Congrats.

  • Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
    13y

    BTW, what were some of the lessons learned in this one Ezinwanne Hawkins?

  • Real Estate Investor · Chicago, IL · Member since 2013 · 19 posts · 0 votes
    13y

    Ezinwanne Hawkins, way to go lady! Thanks for sharing your experience, it's just additional fuel for my fire. ;)

  • Real Estate Investor · Washington , Washington D.C. · Member since 2013 · 117 posts · 51 votes
    13y
    Originally posted by Ibrahim S:
    BTW, what were some of the lessons learned in this one Ezinwanne Hawkins?

    Things I did right:

    ~ Constant follow-up with my end-buyer. I could tell she was nervous about the transaction, so I was sure to keep her constantly informed. As a result, she quickly agreed to 3 contract extensions (due to the delays caused by the liens on the property) with no push back at all.

    ~Keeping my cool when things went left. The seller initially flat out REFUSED to pay for his liens, and seemed to infer that I was being unreasonable for expecting him to. This irritated me very much, b/c he also hadn't been great about timely following up with me on other issues, then he drops this on me. But I remained firm, yet calm and professional with him throughout. As a result, he has 2 other properties that he'd like for me to sell. Go figure!

    Things I'll do better next time:

    ~ More due diligence on outstanding liens or taxes for a property. While you can't easily search for previous city-imposed liens on a property in Baltimore, you can do so for the current year's liens. If I had done this, I would have seen that the taxes hadn't been paid and this may have caused me to question the seller on other outstanding liens or fines.

    ~ Find out in advance how much the attorney's closing fee is. Most of the fees for closing are fixed or based on the property, so the place for the biggest savings are the costs the attorney charges for settlement. These costs ended up being much higher than I suggested to my end buyer. Thankfully she was prepared for the extra costs, but if I had it to do again I'd nail down these exact costs in advance.

    I learned so many lessons with this first deal, so please ask away if there's any more insight I can give :)

  • Investor · DMV Maryland · Member since 2013 · 867 posts · 370 votes
    13y

    @Ezinwanne - your story is inspirational. I look forward to hearing more details about this deal and the one you have on the burner!!!
    Christina

  • Vendor · Laurel, MD · Member since 2013 · 36 posts · 4 votes
    13y

    Congratulations!!

  • Investor · NW Indiana · Member since 2012 · 833 posts · 197 votes
    13y

    Ezinwanne Hawkins I was wondering if you could tell us what kind of contract you used...like what are some specifics that you would add next time or ones that saved you this time?

  • Investor · Northridge, CA · Member since 2012 · 249 posts · 73 votes
    13y

    Congrats and way to go!

  • Joshua D.Pro Member
    BiggerPockets Founder · HI · Member since 2008 · 16k+ posts · 5k+ votes
    13y

    Another awesome success story! Congrats Ezinwanne Hawkins.

  • Investor · Hampton Roads Va · Member since 2013 · 123 posts · 17 votes
    13y

    Ezinwanne Hawkins congrats and way to go..

  • Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    13y

    Great! You proved to yourself that you can do it...and it is stories like this that give all of us motivation and remind us that work and persistence will pay off. Even though the profit wasn't huge, the ROI looks very high. I bet you would find every BP member willing to take that kind of ROI on any deal!

  • Real Estate Agent · Orlando, FL · Member since 2013 · 270 posts · 40 votes
    13y

    Congrats on the deal, did you website help at all ? Can your post it if you dont mind ? Im trying to build my own and any ideas would be helpful

  • Rental Property Investor · Manchester, NH · Member since 2013 · 447 posts · 81 votes
    13y

    Congrats!

  • Real Estate Investor · Washington , Washington D.C. · Member since 2013 · 117 posts · 51 votes
    13y
    Originally posted by Carolina E:
    Ezinwanne Hawkins I was wondering if you could tell us what kind of contract you used...like what are some specifics that you would add next time or ones that saved you this time?

    I actually used the purchase and sale, and assignment forms I found in the BP files. I compared it to some others I found online and make a couple of edits. The title company said the forms looked fine, so I am very comfortable using them.

  • Real Estate Investor · Washington , Washington D.C. · Member since 2013 · 117 posts · 51 votes
    13y
    Originally posted by Ceasar Blackman:
    Congrats on the deal, did you website help at all ? Can your post it if you dont mind ? Im trying to build my own and any ideas would be helpful

    Even if you don't receive any leads via your website (which is unlikely), I still believe it's worth the minimal cost. It definitely legitimizes your business, and gives you an opportunity to speak to your buyers and tell them about yourself and your business. They're so cheap to set up these days...in some cases free.

    My second deal contacted me via my website.

    GL!

  • Specialist · Irving, TX · Member since 2013 · 57 posts · 3 votes
    13y

    Inspirational .....7 Weeks!!

  • Anson YoungBusiness Member
    Flipper/Rehabber · Denver, CO · Member since 2009 · 1k+ posts · 726 votes
    13y

    Massive action pays off! Great work!

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