1st Wholesale Deal! $25k with 15 hours of work!

[Tim Emery]

I Did it! Thanks to Bigger Pockets and some other folks in the Real Estate world I did my first Wholesale Deal! I have to admit is was an accident! 

Those of you who know me, know I don't like Wholesales, because I always believed that I can make more money flipping. The Wholesaleing strategy has been one I don't love because most of the Guru's and events that come though town tell every body how easy it is and how they can do it with no money out of pocket. Well, most of those Guru's don't have plans to teach you how to do it, they just want your money. (sorry I got side tracked) 

There are a lot of skills needed to wholesale, luckily I have those skills, you need to know how to estimate rehab costs, find the correct ARV and be able to recognize the deal. These come with practice and understanding what kind of property you have.

Back to my deal, I went to lunch with a new friend a couple of weeks ago and she said I want you to look at this house. It's in a great part of town, (happens to be close to were I spent 5 years of my life) and there is a house 2 doors away that sold for a huge number.  Sorry, I'll keep those private on here. You can come to ICOR or John Fisher Breakfast Club to learn those details. This deal was a slam dunk, we wrote the contract and I deposited $10k earnest money. 

This was a bigger project so I went looking for a partner. I called an ICOR contact and asked her to join me as a partner. I let her run her numbers, she figured out the fix up cost and was very interested in the deal. I started to write up the partnership agreement and then she called to say, I want to this deal on my own, will you wholesale it to me? I said, well that wasn't my plan but will you pay me $25K. She said yes and the deal was done. 

The reality of the deal was if we had partnered 50/50 on this we would should have both made around $90k, the project will take 5 months and maybe a couple of extra to sell. So, in order to get that $90k we were estimating 8 months. I decided that taking the $25k now was better for my plan this year. 

I talked this though with my friend Tom Zeeb who will be in town next week and we recorded a podcast on it. When you know your numbers, know your comps and have a great network these deals are easy.  You need to get educated and know how to do them. 

LEARN YOUR NUMBERS AND KNOW YOUR COMPS! 

[Tim Emery]

@Jamie Rose I'm not looking to do this full time. I have other plans, but I do get a lot of properties sent to me. When you're in town let me know and we can grab some coffee.

@Scott Morongell Thanks Scott, I may be in Central NJ towards the end of Feb. 

@Nicolas Sartor It's not the strategy I'm using but it's always good to know different exit strategies. 

I know a lot of people in the wholesale business. Run it like a business and you'll do well. Check out ICOR next week,