Wholesalers - How Did You Complete Your First Deal?

Question

Hello Wholesalers!

How did you get your feet wet and complete your first deal?

I've been networking, learning, analyzing and researching properties in Hartford County, CT for about a month now. I've connected with several investors, only one that I almost fully trust now to do a deal without having it under contract in my name first. I have also connected with several agents and got access to the MLS where I have been finding my deals.

A couple times I've been close to getting an investor to not only take interest in a deal that I've found but also give the green light - but I still haven't gotten that, along with their POF, to get a property under contract.

I recently lost my job and my goal is to make my way wholesaling, but I am finding it is taking too long to get the results I needed to close a deal and get a wholesaling fee to make a living. I don't currently have an income or have capital to get my own proof of funds or preapproval to get a property under contract. My plan has been to use the cash investors that I've already networked with to use their POF to get a deal under contract - either under my name then assigning the contract or under their name with a separate legal agreement to get my fee.

Thanks for your time, I look forward to your advice!

Ruben Joseph · Answer

From my experience it’s safe to have a 9 to 5 because these deals sometimes don’t close how you expect it to. Long story short on my first deal i made a $15,000 assignment fee i had quit my job right away because i wanted out but the deal had ah bit of hair in it to where i got behind 2 months of rent on my apartment and behind on my car payment but i ended up closing on the deal but the day before i got the $15,000 my car was sold at auction from the lender so lesson learn i keep a 9 to 5 job now that pays every week which is consistent income to fund my marketing don’t want to put that pressure on your self where you don’t have another income besides looking for that first deal

Paul Logsdon · Answer

@John Hall yes and no

you want to research the area by zip code to make sure the area you drive for dollars in is an area that cash buyers currently invest in. If you’re wholesaling in your home market you probably already know the hot zip codes.

You calculate the ARV on a property when you’re getting ready to make an offer.

So the main goal of driving for dollars is to identify potential distressed properties that you can market to.

After you contact the owner and they show interest in selling then you do some deeper research on ARV, repairs, etc

Paul Logsdon · Answer

@John Hall wholesaling is gods gift to newbie real estate investors.

I just completed my first deal and made 26k gross.

From what I can tell it seems you are looking for wholesale deals on the mls, while this is possible I don’t recommend it. (If it’s on the mls why would an investor go through you to purchase it if they could just go around you?) also the mls usually means you have to deal with realtors(think extra fees)

As a wholesaler you do not need proof of funds to get a property under contract.

I suggest going driving for dollars, this is how I got started. Do a quick YouTube search on driving for dollars and that should get you on the right path. Basically you drive around looking for distressed homes and then you start negotiations with the property owner.

Your goal is to be a problem solver for homeowners, they need to be motivated.

Hope this helps! Good luck!

John Hall · Answer

Thank you for your replies, these are very helpful!

@Paul Logsdon So the driving for dollars method required you to first research these areas that you visited, to get the estimated ARV for the property that you find? Or do you only "drive for dollars" in areas that you've already researched?

Everything you said makes sense. Looking forward to your reply!

Wholesalers - How Did You Complete Your First Deal?

Wholesalers - How Did You Complete Your First Deal?

Most Popular Reply

4 Replies