Newbie Successfully Learns To Wholesale On First Deal

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Nobody would believe this story except we got the checks to prove it. It was really so simple it's crazy. A newbie investor named Shaunte, from Baltimore Maryland, read my post on this site about making money while watching Judge Judy. She contacted me asking for help and I instructed her to place ads on Craigslist using the heading line: “I Buy Houses for $CASH$”

Shaunte soon got a call from a wholesaler that had a junk house on contract for $6,000 and he wanted 6,000 for his assignment. This house had sat empty for years. The vacant house had a seriously bad roof that caused rain to be coming into the home for years. As a result of that, the interior was completely destroyed.

We sent the wholesaler our agreement to sign and then Shaunte and I both started advertising it for $36K in nearby cities, unfortunately, nobody wanted it at that price because this house was really chewed up and required quite a bit of rehab work.

We lowered the price several times & finally we got an offer for $18K from a local Rehabber/Contractor. We decided to accept this lowball offer because, it had been awhile & seemed to be the only offer we would get.

The buyer signed our contract and started escrow and a few weeks later we both got our checks. Here is the real kicker, I did this using no money and sitting on my ass, from 2,800 miles away. How insane is that?

Deal Break Down:

Seller inherited the property & just wanted out from the hassle of city ordinance violations and yearly taxes etc… Seller was happy to get $6,000.

The wholesaler that found it got $6,000.

Shaunte and I split $6,000

Buyer got a fixer for $18,000 with an ARV of $110-$120K

House probably needed $60K in rehab. So he is probably net $20-$30K in profit in the near future.

Now $3,000 is not going put me in that big custom house in the country, but it was really exciting to me. I was so EXCITED that I helped out a newbie investor on her very first deal on the East Coast and I’m way over here in California. Finally, I am really stoked about this deal because according to Shaunte she really needed the money so it was more of like a blessing to her.