The Numbers - First 6 months as a Wholesale Company

[Will Clark]

Investment Info:

Single-family residence wholesale investment in Nashville.

Purchase price: $1
Cash invested: $6,400
Sale price: $105,250

First 6 months - wholesale business net profit. Doing this every 6 months to keep track of my growth and using this kind of as a blog to look back on one day.
Total Income- 105,250
Expenses - 6,400
Commissions / payroll - 28,600
NET PROFIT - 70,250
Profit Margin - 67%

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

I am a college student with no money and no family wealth. I didn't know a whole lot about RE but I knew I was good at business, and this seemed like a business I could run with very little money invested.

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

I prospect by cold calling and text blasting. My cold callers and Lead manager intake and qualify all the leads, and then send them to me. I serve as the acquisition manager so I negotiate all the deals.

How did you finance this deal?

I assigned (No financing needed) most of them, and two of them I double closed on, so I had to get transactional funding. My Title Company is THE BEST (Rudy Title in Nashville) and found a lender for me and I basically did none of the work.

How did you add value to the deal?

I found off-market properties that investors could use to make money on.

What was the outcome?

I enjoyed my first 6 months as a wholesaler, but I can see that it is definitely a job! Thankfully, I've done a good job systematizing and hiring, so I only work about 20 hours a week, but it is definitely not passive income.

Lessons learned? Challenges?

I've learned that finding good cold callers is really really hard. I've also learned that being in a primary or secondary market is really helpful. The deals are hard to come by but at least I have the security knowing that I can almost always sell a deal when I get one.

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

Rudy Title in Nashville, for sure. They have helped me so much on the back-end of the deals. I've met some great agents that have helped with comps and from time to time have brought me buyers. However, they aren't on BP as of now.