First Wholesale Deal Complete Story

[Ember Meadows]

Hey Guys, Just wanted to let you know I just finished my first wholesale deal last week. I started out trying to wholesale, and got more into rentals. So about the deal: I found it on craiglist. The guy had a property listed for 25k. It was not in the best of neighborhoods. It intrigued me because the house was split into two and at one point was rented out on both sides. It also had a commercial building behind it that was part of the package that used to be a gun store. He used to rent out both sides of the house for 300 a month per unit and the gun store used to rent out for 400.

I talked to the seller and tried to find out what he wanted. His situation was he was sick of being a landlord. The current tenant had been in the house for years, and had been saying for years, he would buy the house. He was sick of waiting, he owned the house free and clear and just wanted to cash out. I offered him 10k. After some time of negotiating, we agreed on 13k.

I told him I wanted to see the house. He lives out of state in Florida, and had 1 tenant in the house. However he was going to be in Ohio soon, so we arranged a time for me to look at the house. In the meantime I called a guy I know in the construction industry. I told him about the deal and asked if he would be interested in partnering with me. We agreed that we would split the cost of the house and he would do all the work. We would try to flip it first, but if we got no interest in it, we would rent out all 3 parts. 1,000 dollars a month of rental income, the house would be paid off in a few years.

So we went to look at the house, needed some work maybe 5-10k. The guy I was going to partner with surprised me and asked if he could pay me 1,000 dollars to just walk away from the deal. I told him no. He said he wanted to fix it up and put some of his family there and use the building for some of his construction stuff. He knew I had negotiated the seller down to 13k, so he said he would pay 15k for the property. I agreed.

I went back to the seller and told him the most I would pay was 12k. He reluctantly agreed to take it. A easy 3k for me. I had no idea how to do the paperwork for a wholesale deal. I started calling title companies; they didn’t seem to be familiar with what I was doing. I also found out that to do a double close, I would have to fund the deal first. So after reaching out to a few people, and also posting something on BP for help, @Jerry Puckett called me and offered some timely advice. He sent me his contracts over, and helped me with some of the wording. I also called him with several questions that the title company had. He helped walk me through some of the legalities. Thank you Jerry. Yes going to BP Conferences, and making some great contacts has really helped.

I just want to encourage anyone out there, who has tried and real estate, it does work. No it’s not easy, and for most its not overnight success. But don’t ever, ever give up. You can do it. Don’t quit. Keep marketing for deals, keep networking, and keep calling people back. If you keep doing the behaviors, deals will come to you. Now I have another wholesale deal in the works, should be closing in a week or so. This is from someone I sent a yellow letter to 9 months ago, and just kept following up. Once you hit a deal, things start to snowball. More things start to fall in place. Your confidence, enthusiasm, and energy will attract more deals. It may take a year to really get going. It may take 3 years to be super successful. But if you stay focused, and don’t give up for something else that looks easier, you can succeed.