Here’s an REO Deal I Just Closed… and How I Did It…

NOTE: If you’re looking for the wholesale real estate courses that I recommend… scroll to the bottom.  There are two great real estate wholesaling courses.  One I recommend is just $50 (best ebook on wholesaling I’ve ever read)… and the other is a great home study course (just $297).  I’ve reviewed about 2 dozen wholesaling courses and these two are the best.  Scroll down.

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I know all of you like real life examples of real deals going on… from people just like you.wholesaling real estate Heck, I do too. It’s always great to hear how someone structured a deal and made some great money just by using their noggin and getting into action.

Steph over at Flip This Wholesaler recently closed a REO deal where she made some pretty decent money. But… as you’ll find… she could have more than doubled her profits if she would have done just one additional action… and it would have taken her about 5 minutes to do… and cost her nothing extra.

Anyhow, here’s an update on Stephanie’s most recent REO transaction that has closed… and how it happened.

The closing for the REO deal I had under contract was this afternoon. My contract price was $55k, and I wholesaled it to my buyer for 3k.

This morning, I got a call from one of the buyers I found while driving around the hood a few weeks ago and writing down numbers from "for rent" signs.

While we were talking, he mentioned that he knows a cash buyer who is looking for a 3/1 or 3/2 block home in the 40-65k range. That got me to thinking. So, I called my buyer up who was buying the property from me today (which happens to be a 3/2 block in the 40-65k price range) and asked him what he would sell it for.

He told me 66k (he ended up using his private lender on this, and after paying me my fee, was into it for around 61k, so if he sold it at 66k he would net 4k, after paying me 1k for finding the buyer). (Have I lost you yet?)

I told the other investor the price and didn’t expect to hear back. A few hours later, he called, and said his investor went to look at the property and would pay $61,000. No deal. He came back again at $64,450. Again my buyer said no. Finally, he agreed to the asking price of $66,000 and will close this Friday.

I will be getting another $1k for bringing the buyer (I won’t confuse you further by getting into the mechanics of the paperwork involved).

Here’s the kicker …….

Once we hammered down the price, I asked the investor what the guy’s name was who was going to buy the property. Turns out, HE IS ON MY BUYERS LIST!! Unfortunately, I did not shop this house around, and instead took the first offer that came my way.

So, if I would have taken the time to send out an email to my buyers, or to make some more phone calls, I would be making $11,000 instead of $4,000.

OUCH!!!!!

I guess you guys were right about me not making what I should be making on my wholesale deals (although I stand by the fact that it has nothing to do with me being a femalewinking smiley )………

I certainly learned a lesson from this one, and on a positive note, I no longer have doubts about being able to bring in the high-dollar deals.

Steph

P.S.
Ouch.

My Blog:
[www.flipthiswholesaler.blogspot.com ]

Great work Steph! A $4,000 profit isn’t anything to be disppointed at… but that $11,000 sure would have been nice!

For all of you who are still waiting to get off the fence… this goes to show you that real estate investing isn’t rocket science.

Knowing how to invest in real estate is about 5% of the equation…

Getting out there and putting what YOU ALREADY KNOW to action is the other 95%

In Stephanies case, she knows that she doesn’t know all there is to know about wholesaling real estate… but she knows enough to get going… and realizes that 95% of her education will happen "on the job"… not in a book or course somewhere.

So, if you are on the ground floor of your real estate investing and are just now beginning your education journey… find the best course, book, mentor, etc… put what you learn from that into action before you go out and buy another product.

The key is to find the best and most actionable resources the first time… put what you learn into action immediately… and learn as you go.

Stephanie made this money using a real estate investing technique called wholesaling. Wholesaling is the easiest, safest, and least cost way to get going in real estate investing. But… "easiest" doesn’t mean that it is easy. Any serious and lasting real estate investing business takes a lot of hard work and dedication to make it a success. So, expect to put up money each month for advertising costs (probably between $500-$1000), work weekends, and be dedicated to making it a success until you have created a sustainable business.

It’s not easy starting and building a successful business … no matter what some of the guru’s tell you… but once you get the business into a groove… it can be the most rewarding, profitable, fun business in the world. Just put up the hard work up front, and reap the rewards for years to come.

Anyhow, I’ll stop blabbing all of this fluffy stuff. We’ve gone through most of the wholesaling education out there, and there are two resources that we give our stamp of approval on as being actionable, high value, and more than enough to provide you with enough to get going.

They are:

  • Preston Ely’s "Flipping Your Way to Financial Freedom ": Probably the single best ebook made on wholesaling in my opinion. He leaves the fluff out of it and really lays it out like, "do this first, then this, and this, use this ad, use this form, etc.". It’s only like $49, so it’s a great deal. As I said, this ebook has all of the information you need to get going in wholesaling real estate… but you have to get off your rear end and put it to action.
  • Steve Cook’s "Wholesaling for Quick Cash ": Steve is one of the most honest and down to earth real estate educators around. Steve is still a full-time wholesaler and rehabber… and educates other investors on the side. His courses are a bit more fancy and come with DVD’s, audios, etc. So, if you are a visual or audio learner… this is the way to go. And, just like with Preston, he really lays it out telling you how to do everything… but once again, you need to get off your duff, quit analyzing things so much, and put things to action.

So, if you are looking to learn about wholesaling real estate … I’d suggest saving yourself hours and hours of trying to find the free info online (it can be found… but how long do you want to waste looking for everything?)… and checking out one of the wholesaling resources that I’ve reviewed and given my stamp of approval (these are the only two I approve of so far).

Then, immediately put what you learn to action before you go looking for more education.

Good luck and shoot your questions my way anytime!


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About the Author

Hey, my name is Trevor and I'm the founder of The REI Brain and editor/contributor. I started investing in real es.tate when I was 21... and love entrepreneurship, the internet, and real estate. My main focus today is growing my companies, systemizing my businesses so I can work less and make more, and spend more time with my family. Learn more about me at trevormauch.com.

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3 Responses to “Here’s an REO Deal I Just Closed… and How I Did It…”

  1. i would love to start my first wholesale deal. but to be honest fear has gotten in my way and nay sayers. please help. i got 4 cashbuyers

  2. LOL… yeah, Steph should’ve definitely blasted that property out to her email list. But at the end of the day, I don’t blame her for moving fast.

    As wholesalers… we want to move properties at lightning speeds… get in & out of the deal… and many times in order to do so… you need to accept a bit less money on a deal. My 2 cents.

    Daniel

  3. [...] , and wholesale training but still looking for the first deal. I read about your transaction on reibrain.com and was just curious. I have asked a few investors in forums about wholesaling reo’s. I have [...]

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