How many assignements did you do before your first Flip or Rental?

Question

I'm a fairly new wholesaler but I've been blessed to meet some good investors who havent been shy about  sharing their knowledge and tips with me.

I think I find good deals and I"m constantly learning new ways to aquire deals so is there a certain number of deals I should do before I consider keeping some of these deals for myself?

I would love to hear some good and bad stories from others who started out wholesaling but quickly made that jump.

Thanks

Cass R. Smith · Answer

Thats a great way to start!  Much success to you and I'll definetly keep you in mind when looking for cabinets @Dale Hensley

I started out wholesaling for that reason I figured If I start at the very begining of the process learning to find and negotiate deals It'd be worth its weight in gold.  Keep up the good work. Thanks for responding @Scott S.

Scott E. · Answer

I had done 0 assignments before my first flip, and still have done 0 assignments to date. As @Chris K. stated, they are 2 different beasts. I feel very comfortable rehabbing and flipping from education and experience but feel the opposite about assigning a contract.

I'm sure my time will come, but in the meantime I'll do all my own deals :)

I will say this - The order you went into this is pretty great. I kind of wish I started out wholesaling and mastered direct mail, etc. It would make the finding deals part of my business much easier!!

Dale Hensley · Answer

My first deal was a flip. I grew up on a small farm and my dad was an electrician by trade and a handy do-it-yourselfer. Wasn't really anything I didn't learn. Summers in high school were spent working part time with a remodeling business where I learned a few things about windows and sideing and became quite good at it. When I met my fiance', she was already a REI who had done a few deals and was selling 2 of her 3 rentals for a nice profit. We found a great bank owned deal and couldn't pass it up. I built in extra padding for things I might miss on my analysis. I did miss a couple of things. Because it was December when I purchased it, I couldn't check the air conditioning unit and had to replace it when I found it was bad. Once we had an accepted offer I had to install a radon mitigation system for $800, found some old that had to be treated for $1100 and although I disagree with the home inspector, I had to put a new roof on the main portion of the house for $1600. I also missed a small amount of termite damage that was dormant but under Indiana law, if there is no evidence of treatment in the last five years, it must be treated if there is any damage. Another $300.

I planned for $15k in renovations and it cost me almost $20k but it was well worth it. I still netted $27k on the sale but I admit that I did a lot of the labor myself since demo is fun and it's not that hard to paint and patch some holes. (I did remodel the entire kitchen and installed new vanities in 2 bathrooms, but I included my labor in that estimate. (Btw, kitchen cabinets are way overpriced at the big box stores. Lowes quoted me over $10k for a nice set of cabinets. I purchased nicer cabinets from a supplier for $3100. If you need cabs, contact me)

What I'm getting at is that if you have some mentors, use them to teach you. I failed to mention that my fiance's dad has been a REI for over 20 years and was a great source to bounce this off of as we were putting the deal together.

Cass R. Smith · Answer

Thanks @Chris K.

Chris K. · Answer

I owned 2 rentals before I did any assignments. I don't think the number of wholesale deals you do is relative to owning rentals since they're two different beasts. If you want to keep one for a rental then keep the next good one for a rental. If you're finding wholesale deals thats the best way to get started with rentals.