Question From Jerrell Spencer City and State Indianapolis, Indiana What’s Your Question for the M.O.B.? Can you walk me thru your first wholesale deal? How you found the property, end buyer, created the contracts, title companies, your expectations, was it easier or harder then you expected, how long it took to close? Jus the whole first experience wholesaling a property? Much appreciated and you are AWESOME!
I actually love this question. People dont usually ask me about my first deal. I love to tell the story, because it was the defining moment when I knew my life would never be the same.
Dan and I were very determined to make a wholesale deal happen. We powered through some tough times at first, because we both quit our jobs to dedicate 100% of our time to learning this business and making it work. We both felt that without 100% focus, we may get frustrated and just give it up before the turning point. Although it got really hard sometimes (financially speaking), we didn’t give up.
We were both 25 years old when we started. We didnt have alot of money for marketing, so we did what we could to get the word out. The best prospects at that time were unsafe structures. The City of Jacksonville readily gave the list away, and we spent countless hours every night (sometimes until the wee hours of the night) cross referencing this list to get mailing addresses. I’m pretty sure we had dial up internet, and we were sharing a very old, slow desktop WINDOWS computer. (YIKES). Once we had their mailing information,we mailed them a 4 x 6 INDEX CARD (it wasn’t even a postcard) that we printed on our ink jet printer. We’d set the thing to print, and then go to bed. We’d wake up with printed index cards all over the floor in the morning. Then we’d put stamps on them and mail them out.
When the phone rang in our house, it was time to celebrate!! We knew when it rang, that it was a seller lead calling. Sometimes we would nearly break our necks to get to the phone.
Our first deal was a concrete block duplex in the ghetto. It was vacant. The seller had inherited the property, and sold it to us for $12,000.00. We weren’t sure if we paid too much or not. We kinda just went with our gut, and what we had learned so far about wholesaling. We used the contract template from a wholesaling course that we found on eBay. Our contract was effective for 30 days. Here’s a photo of it from Google Maps. (it didnt look like this when we did the deal).
Once we got the contract, the seller willingly gave us the key for access to the property. We ran ads in the newspaper, put out some bandit signs. I don’t even think that Craigslist was around at that time. It was only on the market for about 10 days before we got an offer on the property for $13,200 by realtors serving the Cape Coral area. We gladly accepted! The transaction closed 7 days later, and we left with a check for $1,200.00.
It was the easiest and fastest money I had ever made. It was fast. Hell, I had to work all month (40 hours a week) to make that kind of money. It was that moment when I knew that wholesaling had my attention. We continued to do what worked to get that deal, and have been implementing those techniques ever since!
You can do this too. If you have any level of determination or desire to succeed at this business, then you can do it. It’s frustrating at first if you’re limited on funds or time. If you stick with it, though, it will come to fruition. It will pay off if you’re patient. Learning everything that you need to know won’t happen in one day, or even in one month, but it will happen.