My First Wholesale Deal. Started From Nothing

[Jarrod Frankum]

Investment Info:

Small multi-family (2-4 units) wholesale investment.

Purchase price: $40,000
Cash invested: $1,650
Sale price: $50,000

This was a contract assignment situation.

What made you interested in investing in this type of deal?

The low cost entry. Wholesaling is such an excellent strategy for beginners.

How did you find this deal and how did you negotiate it?

I sent direct mail using all handwritten letters from driving for dollars. Seller responded on my first mailing. Negotiation was quite simple. I asked what the seller was hoping to get for the property. I used the 70% rule w/wholesale fee to come to my purchase price. I explained to him that because of the extensive repair needed, this is the number that worked for us. He was quite understanding.

How did you finance this deal?

I saved money to afford driving, buying envelopes and stamps. My total expenses in D4D from the time I started until the deal closed was about 1200. Then I had to buy a 450 title policy to make the deal work.

How did you add value to the deal?

Brought a screaaaaming deal to an end buyer, and helped the seller move the property quick and easy

What was the outcome?

Closed in 2.5 weeks. Picked my check up from title company. It was smooth

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

There were no other real estate professionals I worked with.

[Jarrod Frankum]

Guys I am so excited to have completed a deal. It could not have been done if it weren't for the local community of investors around me who have continued to encourage and support me. I am so grateful for all the hours I have spent reading book after book, listening to podcasts and webinars, and hanging out on BP. I started from absolutely nothing. I just moved to Lubbock from Brazil in January and hit the ground running. Got my first deal in right at 3 months. I hope to be an example to other newbies. If I can do it, anyone can. Now I am focusing on expanding my marketing and funneling the cash back into building a business. I just formed an LLC and am getting very close on my second deal. To anyone reading this who is having doubts, or is discouraged... Just give it time, and let the direct mail work. Money lives on the other side of fear. There are deals out there. No one can get every single deal, but be assured that every deal will be found.