Completed My First Deal (Wholesale)

[Duncan Hayes]

It’s 2am PST as I’m writing this. This is my first post on BP, but have been listening to the podcast and learning from the community here for about 6 mos.

Two days ago, I completed my first real estate transaction. I put $0 into the deal and received a check for $7,000! Of that, I paid $1,500 to my acquisitions manager & the business profits $5,500. While it doesn’t seem like much, this check was everything for me! Not only did I create a substantial amount of capital with very little effort, but I helped a home owner that was going through foreclosure. I also proved to myself I can do deals in the Sacramento market. While the deal was going on I did not take on any others, just to study this and learn all the moving parts of a RE transaction.

My cash buyers didn’t want to purchase while tenants were still in the property, so the owner had to serve them. Well, in CA if they’ve been there longer than a year they get 60 day notice instead of 30. So we waited from March 9 when I first assigned my contract to a buyer, until Tuesday the 14th to close. So it’s been a long ride. But I learned so much stuff to help me maneuver through my next deals with ease.

Contract w Seller: $123,000

Contract w Cash Buyer: $130,000

ARV: $220,000

Repairs: $40,000

Ready for that next one. Glad to finally be a true member of the REI community and I'm looking forward to connecting w other members here!