Learn How to Flip Houses, How to Wholesale Real Estate, Wholesale Real Estate Investing
Learn How to Wholesale Houses: Make $40,000 Profit Money Flipping Hi it’s Neva at timeforinvesting.com. Today I’m continuing my series on going through some of my real-life wholesaling, assigning contract transactions. Stay tuned, I’m going to walk through my $40,000 deal. Hi, thanks for coming back and watching my videos. I’m actually behind because a couple of things: One my husband went traveling and he had the camera; and then two I got rear-ended and I’ve just been like kind of in pain trying to get some rest type of things so that’s why I fell a little behind with posting my videos every week. Now I’m going to continue back up with going through some of my real-life transactions, wholesaling and assigning contracts. While I was just kind of chilling getting some rest, I think it’s A-ida or A-eda I hope I’m saying your name right.
But she was looking at one of my old videos where I mentioned that I had made $40,000 on a wholesale deal. She kind of asked, Hey, how did you do that? I just thought to feature it in my real-life transaction segment. This deal is actually old. I closed this back in 2012 but it just still comes up a lot and people ask questions about it because of the value of the wholesale deal which is a lot.
One of the questions that she asked me was $40,000 wow. Because what she had previously heard was maybe five or ten thousand is average. What I will say I’m in the DC area, property values are much higher in this area, like just an average regular house can be $500,000. That can also be why maybe wholesale fees may be a little higher in our area because of that. Another thing is, I’ve done transactions where I’ve only made $2,000. It’s like a range. When I first started marketing this deal, everything was priced that I was looking to make $27,000. It just so happens that I ended up making more than I had set out to do. The first question is in my series that I usually answer I actually need to check. Because sometimes and that’s why I have to write it down, you guys know I’ll forget my own question.
But the first question in the series the question I answer is, How did I get the lead? Now this is really a good example because I had to use several different techniques until I actually had to sign a contract for this house. Initially, I sent a postcard. I had actually communicated with this property owner at least, if I remember correctly, like a span over a year or so. I had sent postcards and maybe within that time, the property owner had received maybe two or three postcards. He did respond to one and we start our communication.
I explained and I initially had made an offer but we didn’t come to an agreement. At that time, I couldn’t meet what he was asking so we never came to a deal at that time. That’s why it’s important to also follow up. Because what I did after that, I would maybe call once a quarter or something like that and just kind of check in and see if anythings changed with the property owner or something like that. Because in this situation, we didn’t come to an agreement. I remember the property owner said, What I’ll probably do is just fix the house up by myself, and then he would put it on the market because he would make more than sell it to me while it needed the repairs and so that’s what he had decided to do.
I was just kind of call and check in and see, Hey are you still going to do that? Have you thought of renovations? Things like that. Another thing that I did, I had started like a newsletter. An email newsletter that I send out to people that I know that are landlords and it has like landlord tips and things like that. Usually if it’s like in a situation someone that I’ve made an offer to before, I was just having no in there saying, Hey I’m still interested in purchasing your property. Give me a call if you want to maybe start talking and negotiating again. He responded again to that email and we started to talk again. Now what’s really, really good tip for this transaction is that a year had past and within that year, property values went down in our area. When I did my analysis, I couldn’t even offer him the same price that I had offered before because the property value went down. When I calculated it, I actually needed to have a lower offer. I remember, initially, I wasn’t going to make the offer because I said, Oh I can’t even offer what I did the last time.
Initially, I was going to tell him that and not even give him the offer. And sometimes, just send him the offer and just explain that why it’s lower than it was previously. I did that and I don’t know. Somehow he accepted the offer and I just was blown away like, Oh my goodness. So always, no matter what, submit your offers and leave the acceptance and rejection to the property owner. Don’t try to calculate in your head what decision people are going to make because ultimately we really do not know so that’s an example of that. This lead I got it from a lot of persistence, a lot of following up. But always follow up in a professional manner not in a nagging, aggressive manner but just professional marketing, reaching out, listening to what the property owner’s concerns are things like that. Because since he told me, Hey I’ll just make the repairs and do it myself, I’ll make more money. I agree with him, I said, You will make more if you do the repairs yourself. But however, he was out-of-state and that’s a lot to be out-of-state. He was smart enough that he knew that not to hire a crew and just be in another state and have them working so he needed to be here.
That was what was holding up him moving forward in doing the renovations. That’s when finally when he reach back out to me, he’s like, It’s been a year, I still haven’t done the renovations. Now the house is empty. Because originally, he at least had a tenant in there but now he was like, It’s empty, I’m not getting any money.It was just a better time for him to sell and just say, Hey Neva, you guys do the repairs and just give me my cash up front. That’s how I got the lead persistence. So what did I do? I sent postcards, I called and I just followed up with email. That’s three different things that you can do. That’s why I always say, Follow up and follow up in different ways. Do not do the same [0:08:11] of thing over and over and over because it’s like annoying. That’s just annoying like I think it’s annoying for me. I could just imagine the person on the other side. Just mix it up, do something different and try to also provide useful information while you’re following up.
Like I said I put the email newsletter, I started to offer tips instead of just reaching out and saying, I want to buy your property, I want to buy your property. It’s just annoying if you do it that way..
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