Do you remember your first wholesale deal?

Question

Thought this would be a fun thread to make..

Share your story  :D

J Scott · Answer

It was a duplex.  Originally, I was shown the property by the agent I was working with (before my wife had her license and I had access to the MLS).

It was listed at $55K and she convinced us to put in an offer for $47K.

It was an REO and the bank countered at $52K.  We went to $49K and refused to go any higher (I have no idea what my rationale was at the time).

The bank rejected the offer and we didn't get the property.

Four months later, the price had dropped to $30K...  :D

We put in a low bid, and ultimately settled on $22K with the bank.  We wholesaled it for $28,500 in a couple weeks to a guy who paid cash, rehabbed it and turned it into a rental.

A couple weeks later, we purchased the duplex right next door for $24,000.  We wholesaled it to the same guy with a single phone call.  That was our second wholesale deal.

Julie Groth · Answer

Don't remember the deal, but I remember my fear!  I was sweating bullets when I called my first buyer.  I wanted to sound like I knew what I was doing.

However, after only about 3 phone calls, I felt like a pro!

Jimmy C. · Answer

Mine was pretty simple.  We were sending direct mail to pre-foreclosures, and I was following up with phone calls on leads we could get numbers for.

My first wholesale deal was from a cold call.  It was an older lady who owed very little, but couldn't afford to catch up. It was in Daytona (other side of the state) so I sent my partner to do a walk through.

Once we had the signed contract I paid for one ad in the main newspaper in Daytona.  The phone rang off the hook for the first few days.  Out of the 30+ people who called we had a buyer.

Ryan Webber · Answer

My first wholesale deal was actually a package deal of five crappy houses in the hood from another wholesaler.  The wholesaler had no idea what they were worth or how much in rehab they needed, but she had negotiated the seller down to a very nice price.  She assigned them to me for something like $10,000 and that's when I really figured out I was in over my head.

I had rehabbed a handful of houses, and these were all at good numbers, but one or maybe two rehab projects is one thing, FIVE at once? :wowie:

It was a 45 day closing so I put my butt in gear.  By the time closing rolled around, I had two of the houses set up to double close, and I had two more sold within a month of closing.  The last one I ended up rehabbing myself and finally sold it 4 or 5 months later.  I think I ended up clearing about $25,000 on the whole deal when it was all said and done.

Over the next year or two, I ended up buying about 20 more properties from that wholesaler.  Funny thing is that most of them I would just wholesale to other buyers.

Will Barnard · Answer

Sure do. I had a property I was looking at, provided to me from one of my direct contacts and the property was listed on the MLS and had many showings. My contact was able to pull the deal and give to me directly, $40k under what the ask price was on the MLS. My all-cash offer won.

I had another 2 deasl going at the time and had did not have enough money for this one. After searching for additional prictae money for the deal, I was not successful in time and had to wholesale the deal. I found a buyer who was all-cash, and was able to flip the deal to him, I made $10k for my fee and it was done by using a trust which avoided a double closing or having to use any of my own funds. Back then, I only had enough capital to do 2 deals at once. If I had then, the capital I do today, it would have gone into my portfolio of rehab flips.

Any profitable deal is a successful one and although I had a few hick-ups on getting the deal closed using the trust (it was my first time then), I was able to do so successfully.

Dan Duran · Answer

I door knocked preforeclosure lead. I found out she had inherited the property 3 years prior. She had not been working for the previous 2 years because of a car accident and she took out a hard money loan for help. Prior to taking out the hard money loan, she owned the property without any liens. 
I almost didn't get the deal because the hard money lender was not very cooperative. I wholesaled the deal to a more experienced investor, but the hard money lender charged $5000 for granting a week extension for the trustee sale. Of course, we needed the extension so the hard money lender could provide us with the payoff amount. (The lender really wanted this property).
I got it under contract for $110K and sold the contract for $120K.

Dan Koch · Answer

Guy had a little 2 bed 1 bath bungalow that he had inherited. It was funny, because the deal was negotiated on the spot and price agreed upon without any counters.........guess I should of went lower : )

He said shoot me an offer, 20k purchase and 35k sale and I was off and running!

Do you remember your first wholesale deal?

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