I Made $26,000 Gross Profit On My First Wholesale Deal

[Paul Logsdon]

Investment Info:

Single-family residence wholesale investment in Louisville.

Purchase price: $84,000
Sale price: $110,000

This is my first ever real estate transaction, I must say it has been enlightening. I have studied many real estate strategies and focused on wholesaling because it is a great way for newbies like myself to come in and learn the business from the ground up (also the low barrier to entry means truly anyone can do it.) This deal is special because it came from true grit, no fancy marketing, no lists, no cold calling, it actually cost me $0 to generate this lead.

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

After nearly a year of studying all types of real estate from multiple sources, I decided I needed to focus on wholesaling since it would be the most reasonable way to get my foot in the door of real estate without using my own cash or credit while still working my w2 job.

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

One day while on lunch break from my w2 job I went driving for dollars. Instead of making a list of houses I wrote handwritten yellow letters and left them on homeowners doorstep. My letter was simple and a few days later one of the homeowners called me wanting to sell his house so we set up a time to meet. He just went through a divorce and wanted to move on, he told me he just wanted the pay off on the mortgage and some cash to put in his pocket. We agreed that $84,000 would be fair.

How did you finance this deal?

Other People Money

How did you add value to the deal?

I was a problem solver, the home was very distressed and the homeowner could barely keep up with the payments. I added value by closing at his convenience, giving him cash to walk away with, and allowing him to take what he wanted and leave behind any unwanted belongings (mostly trash.)

What was the outcome?

$26,000 gross profit

Lessons learned? Challenges?

I learned that you can make money in real estate by solving peoples problems and having a solution oriented mind to provide a win win for all parties involved. It is possible to make money in real estate with no cash or credit!

[Braden C.]

@Paul Logsdon Congratulations! The first one feels great to get done, and you had a great profit. Now it's time to snowball it and get consistent deals.