Ep 8: The Advantages and Pitfalls of Wholesale Real Estate

If you were dropped into an unfamiliar city with only a thousand bucks in your pocket, what would be your fast track to make money and survive?

Wholesaling.

Wholesale real estate is a hot topic and there are endless gurus online that want to teach you the game.

Today's episode of the Value Driven Investor is dedicated to the low-hanging, but competitive, fruit of wholesale real estate.

Tim Murphy and Bob Grand have deep history in this practice and believe it's a great starting point for those getting into the real estate investing game.

You will walk away from this podcast understanding what wholesaling real estate is, how to start, how much you can make, and the biggest thing to look out for when learning how to do your first deal.

This is information most people pay for, so take out a piece of paper, or open up your Evernote, and start taking notes.

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In This Episode….

2:36 Why wholesaling is the easiest way into real estate investing

3:05 Bob's best wholesaling story, making a quick $50-g's on a deal

7:17 Tim's problem with "easy"

9:09 Tim's easy $50-k on a wholesale deal

11:15 Tim's best advice for wholesalers -- don't get greedy!

12:45 The biggest problem with the wholesale market

13:42 Tim's biggest warning when you're learning wholesale

14:11 Everyone and their dog is a wholesaler, but there's hope

19:20 Why people sell to wholesalers

22:00 The grind of Wholesaling

29:30 How to research a local market.

33:00 How to curate a buyer's list

37:15 Can you wholesale real estate with NO money

40:00 Driving for Dollars -- the best way to get started in Wholesaling

43:45 The magic in real estate is financing

44:49 How much money can you make wholesaling real estate

45:18 Is it legal to wholesale real estate without a real estate license?

53:07 Tim's story -- when wholesaling went bad

Miss an episode? Catch up!

Full Transcript

Tim Murphy (00:00):

All right. So we're back on the value driven investor podcast. We are excited and got our good buddy. Bob grand onboard. Bob, how the hell are you doing, buddy?

Robert Grand (00:08):

I'm doing great, man. How about you?

Tim Murphy (00:10):

Fantastic. you know, Bob, we were just talking before we went live here on the podcast and it's always awesome to number one. It's awesome that we have this podcast because you and I are so busy that you only, if it's on the schedule, that's the one thing that that that's great about both of us is that if it's on our schedule, I'll be there. But if you don't make my schedule, good luck, dude.

Robert Grand (00:34):

That's exactly how I see a GM man. I was even just the other day going through all my contacts, Jackson, my phone, like I had like

Speaker 3 (00:40):

3000 contacts. I got to get this thing down. And then there's a setting where the people, if they're not in your phone, they go to voicemail. It's like, you have to have some sort of a barrier, you know, to kind of prioritize your time. And I'm with you, man. If I don't, if I don't hit it on the calendar, it's not happening

Speaker 4 (00:56):

Well. And that's the best thing for both of us, because that's what we were just talking about off air is that you know, it's just awesome to connect with you again, because we're both going in directions. And it's like, when I talk with you, it's like, God, somebody finally somebody that talks my language, you know what I mean?

Speaker 3 (01:14):

Right, right. But today

Speaker 4 (01:16):

We're going to talk wholesaling. And I think, you know, in the survival phase, one of the simplest easiest ways to get started in real estate is wholesaling. And it was funny cause I go, Bob, we're talking wholesaling dad. He goes, oh that no brainer, easiest thing in the world. It's not like, you know what, if you're a wholesaler, we're not laughing at you. But when you're, what we're trying to say is that it's the simplest way to be a quote unquote real estate investor, because it really comes down to a couple key things. And that's what we're going to talk about today is answering questions around what is it like to be a wholesaler? What are the ins and outs of wholesaling? And you know, how do you get started? So Grandville, do you have a good story around wholesaling? I mean, the deal that you did that, you know, just went awesome and you just cashed in,

Robert Grand (02:11):

Oh my God did have the best one ever.

Speaker 3 (02:15):

It was you know, so this was a wholesale deal that, you know, and when we look for wholesale deals, there's people all across the board, you know what they're looking for in profit and stuff. And so we want to get good profit. It was kind of before we kind of had the money aspect of real estate figured out. Cause I feel like people start out wholesaling until they figure out a lot of the other avenues and investing and then they start realizing they don't have to wholesale as much as they can. They can, they can start working on their projects and stuff cause they figure it. And it's usually the money aspect you're figuring out. So you're, you're doing that and to partner with people and stuff and give another investor a deal so you can see how it works. Right. And so I'm one of these deals, you know, we quickly, we get to the point where we would, you know, be to deal heavy, be working on a project and couldn't cash flow the next project.

Speaker 3 (02:55):

So we would have to wholesale it off, you know, and, and that to somebody else. And so one of them, we locked up with a guy and, you know, we would try, we tried to convince the guy, you know, you could make more money just selling your home. Cause that's what we'd like to do. And he's like, Nope, don't want to deal with it. Just want this price. And it wasn't a great location and I really wanted to do the deal so bad, so bad. Like I was just like, oh, I want to do this deal. But we can't because we're tied up with three other things and we weren't willing to risk ourselves, you know, and, and put ourselves over leverage, you know? So we get in there with this deal and you know, we think if we could just make a $20,000 assignment fee on this thing, it would be awesome.

Speaker 3 (03:33):

Right. That's an amazing deal. So in the end, like we, we were kicking it around at people. We kick it to our private money lender lady. And she was like, oh my God, I need this deal for my daughter. Right. Like I brought this up before I need this deal for my daughter. And she's like, what would be a fair price for you guys for a wholesale fee? And you, I was like, well, I mean, if we could get this price here and she didn't know what we completely had a locked up at, you know, I was like, she's like, okay, no problem. We'll get that price. There are assignment fee on that one.

Speaker 4 (04:02):

Stop stop though, because she didn't know exactly what we had it locked up at. And that's the one thing though that always stops wholesalers because they feel guilty because does that lady even care what you have locked up for? All she cares about is can she get it at a price that she thinks is right. Right. Exactly.

Speaker 3 (04:23):

Yeah. And it's, there's no shame in it. Right? Like we found the deal and we hunt deals all day long. It's like, you're like turning over rocks, right? Like, Hey, is there a deal here? Is there a deal here? Is there a deal here all day long, 24, 7. That's what we do. So that's why we benefit from that. It was a good point that you make there. And cause there's no shame in it, you know? And we, and we gave the guy the out of what he should do and he wanted this price and we paid him his price. But in the end, you know, she paid us a $50,000 wholesale assignment, basically 50 GS to basically take this deal from us because the margin was so huge, you know, on the, on the backside. And that's what I would call like a unicorn wholesale deal. Right? Like that's that. And we didn't even realize it at the time that it was like, that's, you know, like what we would consider a unicorn, you know, cause we'd make 15 to 20 K on a, on a wholesale. I thought that was amazing and went out and dropped in. And I was like, wow, he's on this thing. And that made me think, I just want to wholesale all the time. You know, I want a

Speaker 4 (05:23):

Beauty of it though, because it is that simple. I mean, wholesaling and we're going to get into the nitty-gritty cause we're going to, we want to, I want to go through this list of questions that I think people have in their head about wholesale and getting started all that. But it is that simple. And that's the thing. That's why we make it as a great tool in the survival phase of the value of an investor. Because if you really want to just get your feet wet, learn how to wholesale, because you can turn 50 K you know, you can go pick up a rock, find the right deal, get it at the right price. And you can turn 50 K and let me tell you, you, you turn 50 K and now you're you can become a rehabber. I mean, 50 K goes a long way.

Speaker 4 (06:03):

If you can find properties again, it depends on what market you're in. I mean, if you're in a market, that's got super expensive properties like California, okay. 50 K might not do it. But if in your, if you're in Bob grand's market and you're able to find properties in the a hundred thousand range, 50 K can get you be coming a rehabber. So I got a good story too. I, you know, it's funny because I, I told my wife, I said, Hey, you know, one of the episodes I'm going to do tomorrow is about wholesaling. And she kind of knows what wholesaling is. My wife doesn't really want to get involved in real estate investing. She's she's involved because she's my CFO. She runs all our books. If I didn't have her, I wouldn't even know like how much money I have. So that's why I married her.

Speaker 4 (06:42):

But anyway no, so she, she knows enough to be dangerous, but she doesn't know the ins and outs and she doesn't really care to know. But anyways, I told her about how I said, Hey, we're going to have this conversation on podcasts about wholesaling. And she goes, well, you know, that's really funny. Cause I always tell you why don't you do more of that? It's so simple. And I was like, yeah, I don't know why I don't do more of that. And she goes, I know why you don't do more of that. And I said, what? She goes, it's too easy. You don't like it. I'm like, yeah, you're probably right. And I think he's right, because what I love about investing is I love taking something that's junk and transforming it into something. That's my vision. Like I just love that. Like that is the thing I love about rehabbing.

Speaker 4 (07:28):

And so wholesaling to me, it's like, well, okay, so I find this it's under the rock and then I turn it and get some money. Like, okay, that's awesome. But like money doesn't motivate me that way. So but this is my deal. So that's why I haven't done a ton of wholesales. I've probably done 20, 25 nails in like 15 years. Cause it just, I'm not ever paying attention or that's never in my head to like wholesale something. The first thing in my wife brought this to my attention. She goes, the first thing that you're thinking about is like your worst case scenario is you're just going to rent it. And you're never thinking like, oh, why don't you just buy it? And don't even touch it and put it on the market and make a profit. And I'm like, cause that's just, this is boring.

Speaker 4 (08:10):

But I have this one where I bought it and I actually held onto it for a year and I was trying to develop it. I had all these other projects going. I'm like, I'm going to get to it. I'm going to get to, I'm going to get to it. And then all of a sudden, a builder came up with someone who wanted to build a house on the lot that I had. And they gave me an offer, which was right around that 50,000 mark. Like I couldn't raise it. I'm like, well, okay. Like, I mean, yeah, I'm not going to make it much, but I am. I really gonna not take 50 K on a, on a wholesale deal when all I have to do is sign the paper and run with it. So like when I'm doing deals like wholesale deals, now I did just do a little wholesale deal, a 20 K wholesale deal on this little townhouse I got for 1 45.

Speaker 4 (08:57):

I wholesale that deal to another member, which is really cool because this Ryan who I'm working with, we, I did a podcast with him. So you guys are gonna hear that episode coming up. And he's another guy that I kind of, you know, he came to me and said, Hey, you know, help me out. And so I helped them out on this one. I'm like, Hey dude, I don't really want to do this little one. You know, this little townhouse, how would I wholesale it to you? And he's like, yeah, totally. And what's the point of that? Like, what's the point of that? Number one, the point is, is that, you know, he's, he's definitely part of the value driven investor community. Number one, number two is the point for me was I wanted to help him out. Cause he's part of that community and I was gonna make a little money and he's going to make money.

Speaker 4 (09:38):

And I think, you know, that's what I call win-win situation. But the number three thing is that you have to, in your mindset of being a wholesaler is can you didn't even care? I told him, I go, dude, we're we're buddies. Like I'm going to tell you everything. And like, here's how he didn't even care. I'm making 20 grand. He's like good for you, dude. You found it. I wouldn't have found it good for you. So I think that's the biggest thing you have to get over when your, as far as a mindset, when you're a wholesaler, is that nobody cares what you buy it at. Nobody cares what you are making, but what they really care about is what are they going to make? And if your numbers, if you're getting too greedy and your spreads too thick, and they are going to have to take on too much risk, you're not going to have many, many guys to wholesale to.

Speaker 4 (10:26):

And so that if there's one piece of advice, I think Bob and I can give you in this podcast that is super valuable is that don't get greedy volume is better as a wholesaler, less is more. And if you try to pinch too much, you're going to lose customers. You're going to lose guys like Bob and I that want to buy from you. And the thing is, is would you rather sell Bob and I 10 houses or one? Because if you sell me one and it goes south and you, you got greedy. And I pinched me and I, and it was no good. I'm never calling you again. You know, whereas if you sell me one and I make enough money, like I did over with my buddy Ryan, and he's like, dude, I just made 30 grand. Thanks man. Where's the next one?

Speaker 3 (11:07):

It's true, dude. Yeah, yeah, no, that's exactly it. There's so many people that are wholesalers out there and they, and I get stuff sent all the time. I'm on so many lists. I buy from a wholesaler that sends me probably like once a year, once a year, because I'm not that investor that's willing to freaking take the risk on thin margins. There's always somebody out there who is, they're going broke next time. There's a market change. I'm not going to go broke. And so then that guy is going to have to start reversion courses and start making me better deals down the road because we could close on every one of them. If they just gave us the margin we needed and the whole selling, supposed to play by the numbers, right. They're supposed to calculate the eight calculate the, the repairs, you know, in the ARV, after repair value. And they're supposed to reverse all that out and then leave room for themselves and leave room for that investor. But what's happening in the wholesale market, which it's flooded with people is they're not leaving room for the investor and then they're just kicking it to him and that investor's getting squeezed. That's not going to happen for much longer. You know, it's going to change.

Speaker 4 (12:06):

Yeah. Well grant tell him, I mean, this was a great conversation. We ended off here where you're like, you know what I think, because the wholesaling at the value driven investor is yes, we want to help you understand wholesaling. We will put together a course on wholesaling. We want to get you started on wholesaling, but let me tell you like wholesaling. Isn't what we're about because it's so much more than that. Like real estate investing at the best levels in the highest levels is way it's way better than that. But it's a great place to start. And so why do I say that? I say that because Bob and I always tell ourselves, and when we're having conversations, like dude, everybody has a wholesaling class out there. So my number one warning to you is be careful because everybody has a wholesaling class. If you want to learn wholesaling, like there's a gazillion people out there that want to teach you how to wholesale Bob and I don't really care about teaching you to wholesale unless you're part of the community and we want to help you get started. Sure. And get out of the revival phase. Sure. But other than that, man, if you want to just learn how to wholesale, like go to the internet and, and check it out. But Bob, tell him what you think, where you think we are, we're in the market and where we're going in the market when it comes to the context of being, or becoming a host.

Speaker 3 (13:20):

Well, I mean, it's such a flooded market right now. Right? So everybody in there and their dog is a wholesaler in the real estate market. I'm sure there's plenty of room left for other people. It's kind of like the agent world LA the market becomes really hot. Everybody becomes a real estate agent. Right? So I think that, you know, over the duration that that's going to start to switch, you're already hearing about regulation being imposed on people, wholesaling properties. Last time I heard that was 2006 when they were talking about, you know, flippers being regulated, this and that. And you can't just flip a property and turn it for more profit. It's not because everybody was a flipper. Right? So you start to see those common themes because of your experience in the past. And you know, maybe getting burned. But that's where I see wholesaling right now.

Speaker 3 (14:00):

Nobody wants to be the investor. They, you know, in that world, I would say that the bigger percentage of real estate investors starting out, they're all wholesalers and staying in that space. You know, a lot of them are maybe not progressing to the next phase of, you know, investing. And so that's really flooding out that space, but they're, they're chomping at the margins for investors. So, you know, it's one of those things something's going to give. If the investor can't do the deal, the wholesaler can't sell it. Then they have to go back to the owner. Then all of a sudden the wholesaler doesn't complete the deal that they just told, the seller that they're going to, you have to figure out how to get out of it. So it doesn't understand. Whole deal goes bad. You're never going to work with that person again, you know, they don't trust you now.

Speaker 3 (14:38):

So that's where I like, I just, you know, as long as the market's hot, it's great. But when the market goes down, it could go the other way. And there's going to be a lot of wholesalers out there looking for stuff. And right now, like we, you know, we're running ads all the time for, you know, pay-per-click and stuff to try to find, you know, houses that we want to buy for cash. And I'm seeing, you know, we can't even spend our ad spend right now. So the demand's not there because people can list their home really quick and get it sold. Right. There's less than 15 days inventory in our market so they can list it, get a sold, we're still picking up deals, but they're just not as fast, you know, but if you're in the wholesale world and that's how you're going to stay, that's gotta be really hard when you can't find a deal in this area. So they start jumping to other markets, start flooding other markets where other wholesalers are, you know? And so I think we're just going to be at a tipping point, you know, in the near future, very near future. And like I say, nothing against it, great place to start, great place to cut your teeth, start partnering with other investors, learning what they know, so you can become them, you know?

Speaker 4 (15:34):

Yeah. And that's the value driven investor will never hang their hat. Because you know, we have the four phases of the value driven investor, which is survive, thrive, invest, and then legacy. Yeah. You're never really going to get to that, becoming a real real estate investor with cashflow and all these different things. If you are stuck doing transactional work and Bob and I have done it, you know, if you're stuck on transactions, you're never going to get the freedom that the cashflow will give you. And that's why the value driven investor is not about wholesaling, but wholesaling is a great first step to get out of the survival phase. So that's our rant on wholesaling. But now let's, let's talk about the ins and outs of wholesaling, Bob, because I think if somebody is sitting there going, okay, well, Hey guys, it's great that you're over here and you guys have done all these things, but I'm just getting started.

Speaker 4 (16:18):

So give me some insight here. Okay. Why is it called wholesaling? So I'm gonna answer this question. Why is it import selling? Because just like you can wholesale a product like any type of retail product, let's say like a t-shirt or clothing or anything. You go directly to the manufacturer at retail pricing. And that manufacturer says, Hey, I'll sell this product to you at this price. And that's called a wholesale price. You can do the same thing in real estate. When you are the middleman between the homeowner looking to sell the property at below market price and a buyer willing to pay a higher price to acquire that property. So that's really the definition of wholesaling is that you are the one that turns over that rock. You're the one that makes direct contact with the homeowner. The homeowner, you don't usually in a wholesale deal is pretty motivated.

Speaker 4 (17:03):

And they said, you know what? No, I don't want to put it on the open market. No, I don't want to deal with anything. I just want to get rid of this property. What will you pay? And you give them a price and that price is going to feel a little uncomfortable. So when you're a wholesaler, you're going to kind of think to yourself, God, am I doing the right thing here? Because I hear that a lot because you're, you know, that this house is probably where 20, 30, 40, 60,000 more. But you know what, it's not your decision. It's the homeowner's decision. So you make that offer to the homeowner. The homeowner says yes. And you're like, what? Yes. And you're like, okay, great. So you'll take that deal. Yes. And then you put it on. Sometimes you buy it on a regular contract or you do an assignment contract, right. And then you sell it to somebody else. We're going to go into more detail on it. But that is wholesaling is so why would a homeowner ever want to sell at such a big discount when they can sell directly to a rehabber like Bob and I, or directly to the open market. Bob, why don't you take that question?

Speaker 3 (18:03):

So why would they sell to a wholesaler versus just go right to us or take it to the market? Good question. Really, I think opportunity happens when you're touching the people are looking for those people. And I think a lot of the times it's that connection that wholesalers out there spending all their time, you know, as we said earlier, turning over those rocks, looking for those people. So they connect with them probably first, you know, cause they're out there on the front lines of it. So I think that's probably one of the big reasons, you know? And I think that most people, when you're stuck in one of those situations, it's never like, God, I really just want to lose money on my house. You know? And I think the good wholesale people tell them what the value is that they have in their house. And they're very transparent with them. That was one thing I would add, but when they're going in there and they're looking at that and they're thinking like, God, do I really want to lose money? It's usually because they're facing a factor, right? Death, divorce, major, you know, financial issues, loss of jobs, you know, a loss of jobs

Speaker 4 (18:57):

Property, and they can't make the payment on a property. I talked to a lady about that.

Speaker 3 (19:01):

Yeah. Those are the situations that typically they don't know what to do. They're stuck and they're in some of the situations, financial stuff. It's very embarrassing, you know? And so they want to find somebody that they can covertly go to trust enough, to get the deal done. So they don't sink completely, you know, and that's what we find home completely rundown. Like it's, it's embarrassing, you know, here's my house that I've been living in. That's packed full of stuff, you know? And I'm embarrassed to show it to anybody else. Can you just buy it? I gotta move down over here or something.

Speaker 4 (19:31):

I know. And you know, you kind of nailed it. You came in and you said, Hey, I just want to mention that, you know, a good wholesaler was going to be very transparent. Again, Grando a value driven investor. Like we think about the people first. And we don't think about trying to take advantage of someone's situation to make money. We think about how can we help these people. And if we can help them end make money, then we're being evaluative and investor in that. And that's why I love Bob. And that's why him and I are good buddies because there's a ton of people out there who do not think that way. They think I need a paycheck, especially because I'm in the survival phase. I need a paycheck. I need a paycheck. I don't care what their problem is. It's not my problem. Well, you know what, you're not going to last long.

Speaker 4 (20:17):

Right? You're not going to laugh. And and I'm going to add also to Bob what Bob said. One of the wholesale deals that one that I did with Ryan, who's part of the wholesale or evaluative and investor community on that townhouse. The reason that guy sold that property to me at such a discount was because he needed to get out of the country and get down to Mexico where he was moving. And he didn't, he wanted it now because he literally had a plane ticket, a moving truck. And I said, well, why did you wait so long? He goes, great question. And I said, why are you? Like, he literally told me how much money I was going to make. And he goes, kid, this is how I think it breaks down. I mean, this guy's an engineer, right. So he knew every number he goes, this is how I see it brings up.

Speaker 4 (20:59):

So are you cool making maybe 20 grand? I go, well, yeah, but this is like almost too good to be true. And he goes, it's not too good, too good to be true kid. He goes, I got enough money. I'm retiring. I'm going to Mexico with my wife. He goes, you know what? You just are in the right place at the right time. And I was like, all right. And that was it. That was it. I was in the right place at the right time. And I was the guy that turned over the rock rocket, the perfect time for that guy. So it can be that simple, but then it takes a lot of work to turn over enough rocks to have something like that fall in your lap, right? Oh my God. A lot of work. That's

Speaker 3 (21:35):

What people miss and wholesaling, it's, it's glamorous and seem so easy, but it's that day to day grind of looking for properties. And that's where we're always at to, you know, and we look into bot, we're looking to buy them, you know, but we're, we're doing the same exact thing. Same thing as a wholesaler, you know, we're looking for those properties every single day, evaluating deal, evaluating deal, evaluating deals, running the numbers, crunching numbers. Does it work? Does it, we may evaluate a hundred deals and get one deal. You know? So that's the grind that most people don't think about. That's where that becomes hard. You know? So I think that was a good point that you made. So,

Speaker 4 (22:08):

Okay. That's a great transition into the next thing that I think everybody's thinking or asking themselves. Why would a rehab company ever want to pay a wholesaler when they can buy direct from the homeowner? And I think you just nailed it, man, because at the end of the day, if I'm a rehabber Bob and I are sitting there and you bring a deal to me, that makes sense and you make money, but I know I can make a good amount of money as well, but I have to do the rehab part because I have the team in place to do the rehab part. Why would I say no to that at the end of the day that you just saved me turning over a hundred rocks to find my next deal, because see my biggest problem. And Bob's biggest problem as the actual construction company rehabbers, is that we have to keep our pipe full because everybody down our pipeline between general contractors, designers, subcontractors, everyone on our team depends on us to keep filling the pipe. So when you can help me fill the pipe, so I don't have to go and turn over a hundred rocks to find my next deal. I don't care how much money you're making, as long as I make what I need to make so that I can come back to you and say, Hey, you got another one of those right. Back up. Exactly

Speaker 3 (23:22):

Dude. And that's why that wholesaler has to play the numbers that we play by. Right. And which you're not seeing, you're not seeing in the market right now. They're just throwing deals out there. Some say suggested price. And I'm like, well, what's the price. I was like, you should know your numbers, you know? And so that's exactly it, man. I think you nailed it right there. So that that's very good.

Speaker 4 (23:40):

That's another thing. I went into a chat room. Cause you know, when I do these podcasts, I like, I like to go go like, what are, what are people in right now? So I went into this room for wholesalers and I was reading through some of the posts and you can see the frustration on the guys like me and you, the rehabbers, the ones that are actually flipping the property. And they're just like, why are you putting numbers out here? You have your, your calculations on what the potential rehab costs are. Aren't even close. And why are you? Why? I mean, isn't that the job of a wholesaler to understand how to break down the project from, okay, here's what I think he can sell for. Here's what the costs are. Here's what, you know, what you need to pay me. Here's how it all breaks down.

Speaker 4 (24:22):

Like that's what a good in this was a contractor. This was a pretty good size contractor that was like, isn't that your job? And then another guy, that's a wholesaler. Like he does a lot of wholesale and he's like, well, you know, in all respect, I'll do respect our job. We don't feel our job really is that because you're the one. And, and also contractors have so many different pricings. Each contractor looks at something differently. Everybody's gonna have a different way to cut it, you know? And I'm like, okay, I get that argument. But at the end of the day, what I, what I don't, what I know for a fact is is if you're a wholesaler and Bob and I want to buy from you, you better know the numbers enough and be able to back track numbers enough from what I can sell it at to what I need to put into it, that I don't get burned. You owe that to me because I'm your customer. And if you can't do that, then let me tell you, you're not a value-driven investing wholesaler because you are not doing a good job.

Speaker 3 (25:22):

You're just not going to make it very long in that industry. If you don't start, if you don't learn those basic formulas and understand it, if you can't ballpark the construction costs, you know, if you haven't done your research, you haven't done your homework. There's some education that goes along with everything, you know? And that's why it's such a great place to start. You know? Cause you got to educate yourself on how is this person gonna buy my product, which when you get to be the person who's buying the product, then you'll understand your numbers so much better. You've got to understand what that contractor is looking for. So to throw out that thing, like everybody cuts it differently. You have to be able to ballpark the numbers and you have to, if you're not quite sure there's a thousand places to look it up online to get an average. So then that

Speaker 4 (25:59):

Right, right. Bob, you can say, okay, I I'm good at enough at this. I can say, okay, here's a high-end remodel. Here's how I think this, this is what I'm saying. The construction cost will be. Here's what the retail sale price will be. Here's a middle of the road. Here's what my, my vision of that is. Here's what I think the construction costs. Here's what the retail. And then here's a, like what we all like to call them the real estate investing world lipstick on a pig, like just clean it up and get it out there. Here's the like give scenarios. There's nobody, there's no contractor that will ever say to you. Okay. Like this is a wholesale that honestly, if you did that for me, I'd be like, this is the guy I want to stick around because now he's making my decision making process super simple. I get it. Like, I understand that I can vary. We have variables. I can do things differently in between those three options. But if you give me those three options and then those three options pan out, when I do the deal with you, I'm going to come back to you over and over and over because you make my decision-making process. So, so simple. So easy. Right.

Speaker 3 (26:57):

So true, man. Yeah. I mean you think about it, you know, it's like knowing those numbers, you know them as a wholesaler, then you're, then you start rehabbing, you know, I'm there. And then to me is like a rehabber real estate investor doing projects. Like I got my private money, people that I have to, you know, then I have to appease, you know, cause they're not going to do a deal with me unless the numbers work. So then I shifted to them and you know, I give them that package. I know my numbers all across the board. So when I send them something, they trust me. Right. So when you get to this phase, you know where I'm at, then you try to borrow money. If you don't have those numbers, right. From the get go you're toast, you know, you're not going to get any money

Speaker 4 (27:30):

Grand. Okay. Like I think we nailed that. How let's talk about how do and let me, I'm gonna, there's about four different things on how do I start wholesaling real estate. So that's the big question that you're probably sitting there going. Okay guys. Okay. And you're kind of preaching to me now, but, but how do I start wholesaling real estate now there's 1, 2, 3, 5 different things. Number one, you got to start by researching the market. Number two, you got to curate a buyer list for your market, because if you're going wholesale, you better have a buyer. That's gonna buy it. Number three, you have to secure a financing source that worked for you because you do have an obligation, whether it's just your, your earnest money or potentially you have an obligation to close and then wholesale it off. So you better have some financing figured out.

Speaker 4 (28:18):

Number four, you have to start searching for the real estate wholesale deals, which is turning over all the rocks. Number five, you have to decide to assign the contract or quote unquote, sell it. Or you do a double closing, which is you actually close the deal and then you wholesale it to someone else. So Bob, why don't you start with the research on the research part when you're researching your local market. Now, your brother's amazing at this, but some insight on like, okay, so I gotta start. First thing to do is research my market. What does that even mean?

Speaker 3 (28:49):

So researching your market is going after the type of property that you see. Like if I were a wholesaler, the best thing you can do is pick like the entry-level market. Right? So if you look at the entry level market, because that's where you're potentially going to have the biggest opportunity and they're the most clients and the most investors are, it's where I like to be right now. You know, you're you go a little bit higher, but so I'd say, okay, so what's the perfect home in that entry level market, you know, for me and my entry level market right now, it's those 70 style ranchers that people are looking for. It's all grown up in right at 70 style rancher can typically be either a big construction project or a little construction project depending on the investor. And, you know, it's, they typically have been lived in for a while and a lot of them can be outdated and they usually need that one wall to come down between the living room and the kitchen to really make it a cool new space.

Speaker 3 (29:35):

That's like the bread and butter and I love those things. And so that's what like me for what we're looking for all the time, those, you know, so now we look at the factors, you know, research, what factors can I figure out that are going to kind of affect me finding that are that people who need to sell those things. Right? So a lot of times if people have lived in a home for a long time, right? So 20 plus years, those are great ones to go after. Cause their homes typically haven't been updated people that are facing foreclosure, you know, probate deals. That's another great one there, you know, and then, you know, people that you know, I just had something on top of my head. I missed it. Oh, dang it. I had it. So at least those are the way, you know, me going after it I'd be looking at, you know, that was being like some of the factors that go into it and going through, oh, this is the area.

Speaker 3 (30:24):

Sorry, that was probably the last thing I was thinking was like, what's my location. So because you could easily go all citywide. Right. You know? And so when you're looking for, you know, foreclosure and stuff like that, you may look at kind of like a bigger area, but you might have also a zoned in target area where, you know, you know, this area is going to be super hot. So that's where you might focus a lot more energy, but you're still looking at, you know, the foreclosures probates everywhere going after that, if I had to pick, you just have to have a perfect, you don't have to pick kind of like an avatar property that you're going after. A lot of other ones spit in there, you know, and they may pop up. But as long as you have something that you're going after and you know, it's what everybody wants in the market.

Speaker 3 (30:59):

And I think that's probably the big thing is knowing what people are really looking for. And in my area, it's entry level homes is the hottest thing like they really need. And so that's kinda what I would go after, you know, and thinking about the research and understanding what's, what's the market time in the market, you know? So like how many days on market, what are things selling for? You know, you gotta, you gotta do all that kind of research. And so, I mean, I guess quickly and stop me if this is a bad place to go. But if I were to be dropped in a market that I don't know, you know, like you dropped me into a different market. And I said, how am I going to get to a paycheck as fast as possible? I need to start wholesaling. Cause I'm a real estate investor. I've learned about this concept. I'm going to go in, I'm going to meet with a contractor, a real estate agent. I'm going to learn construction pricing and I'm going to learn, you know, home pricing in the area. And then I'm going to go pick my perfect home. And I'm going to use the factors that typically influence people to sell a home, you know, for be able to, to buy my deal and find my deals. And so recapping it real quick as kind of what I would think, you know, divorce, all that type of stuff.

Speaker 4 (32:00):

Let's go on to curating a buyer list for the market. Now, Bob, I want to do a, kind of a creative way of answering this question because when I'm curating, if I'm a wholesaler and I'm curating a buyers list to buy my wholesale deals, which is me and you, right? We're we're, we're the guy that they want to find. Let's just list off, back and forth. Where could they find me in you? Or how could they reach me and you to be like, Hey, I got wholesale deals. Do you want to do a deal with me? So I would say the first place that comes to my mind is I'm in a lot of Facebook chat rooms that have to do with real estate investing. You could definitely throw a message out, or you could maybe see some of the messages or deals that I'm putting together and you can be like, Hey, I got a deal in that market. What, what would be one place that they could find you, Bob?

Speaker 3 (32:49):

You can find me a local real estate, investment, meetup groups, things like that. That's, you know, outside, if you're online, hitting an online one out offline would be, you know, locally at a meetup or something like that. And part of a couple of little investor things where, you know, we kind of circle around, talk to people, just kind of a networking group. I, I would think that's probably a great one, you know?

Speaker 4 (33:10):

And another one that popped in my head, if you drive around the neighborhood that I'm doing deals, man, you're going to see my signs all over the place. And you're going to say, well, dude, this guy does deals in this neighborhood. I should pull them. Cause I got a deal in this neighborhood. I can wholesale him. Right,

Speaker 3 (33:25):

Right. Talk to real estate agents, you know, real estate agents start going down the list of agents and ask them if they know who they have for investors, call private money companies and say, Hey, I know you do private money locally. I'm a wholesaler. I have a deal. Do you have an investor for me? That's the number one way I would do it. If I had a deal right now and I needed offload it, I would call my private money lender and say, Hey, I, I need to find somebody else to take this deal. They'll have somebody lined up like that for you to get that deal. I

Speaker 4 (33:52):

Mean that's yeah. And I would go, right. I would, I would hit that one too with my commercial bankers. I mean, I worked with banks and, you know, walk into a commercial bank, do some research, find out which banks in the area whether they're it's a community bank. Cause I would tell you local smaller community banks do more aggressive lending and say, Hey, do you guys work with real estate investors? Yeah. We work with real estate ambassadors. Fantastic. I got some deals. Can you give me a list of some real estate? You know, like a wholesale deal. You're also doing okay. When you do this with either, you know, a hard money lender or a banker, what you're establishing is credibility because you're able to find the deal. You're not going to be able to do the deal maybe right now, but now what's going to happen is that when you get enough money in your kitty and you can do your own deals, you walk back to that banker you've made like, look like a hero because you handed him an opportunity to go to his client and say, Hey, I got this guy who might have a great deal for you.

Speaker 4 (34:44):

How many bankers have called you Bob and said, Hey, I got a guy that might have a great deal for you. Not many. Yeah, no, no. What you're doing is you're. Now you're now taking your gold, which is, which is this opportunity that you have as a wholesaler, you have a piece of gold in your hand and you're handing it off to this banker or finance. And then that can say, Hey, I got a great opportunity for his client. You just created two awesome relationships because both of them, as long as the deal is solid, they're going to want to know you. So that's how you can generate a buyers list. There's a million other ways. But Bob and I just whipped off a couple. There let's go to the next one. Bob secure financing source that works for you now, now, okay. We can talk about that.

Speaker 4 (35:28):

But the next thing, like, let's call it a subtopic of that. Can you wholesale real estate with no money? Because I think when you're there thinking, okay, I'm going to be a wholesaler. You're probably going, well guys, like, if you, if I need 20 grand, I can't do this. And you're thinking of every excuse, why you can't do it. So I think the big talk about Bob is how do you wholesale with no money now again, no money. So literally you don't have a dollar. Then you're going to have to beg, borrow and steal from someone that trusts you because you need to have at least earnest money. You need to have something that shows the seller that you're committed. It can be $500. It can be a thousand dollars. It's whatever the seller might be okay with. I would say the number would be somewhere between 500 and a thousand dollars at a salary. I'd be like, okay, I'm fine with that. So if you have that, you can start wholesaling, but Bob, why don't you take this one on again? The question is securing finance secure a financing source that works for you. Can you wholesale real estate with no money?

Speaker 3 (36:29):

Yeah. So securing a financing that works for you a lot of times when you need that's for a double close, if you're a wholesaler, because if you're, if you're buying and closing it with your private money, you're a rehab or flipper. So if you, and that comes down to that double closing, so finding somebody that will fund it most private money companies will do that. They'll take a point, you know, to, to be that transactional thunder for you. So that that's, that's an easy one. When you kind of look at it that way as best as I, I think, I mean, what was the next portion

Speaker 4 (36:58):

Of that question the next day is, okay, I'm sitting here, guys. I don't have a lot of money. How can I go sell real estate with no money?

Speaker 3 (37:05):

Yeah. So again, like every state's different as to what you have to put down, right? 500,000 bucks, you know, totally work here in the state of Oregon. But you know, a lot of times with that whole wholesale package, you write up the contract, right? So you have the contract, which ones page, it's a one page contract. It's assignable. We always have an assignable box on our contract. And then we, and then another contract that says who we're assigning it to. Right? So we may take it. We say, okay, here's the check. We're going to put this amount of money down. But none of that money comes to fruition until it goes to escrow. So that's when you would have to do it. So you have time. So if you lock it up, it's not like you can't even write the offer and say, you didn't have 500 bucks or a thousand bucks guaranteed. You know, if you didn't have that money, you want to get started and you were looking for it and you lock up the deal. You've got somebody that, you know, in your world, that's going to say I'll loan you 500,000 bucks. Especially if you say I'll pay you 500 on top of that 500, a hundred percent cash on cash return, I'll loan you 500 bucks to get 500 bucks back right now, call me up any day. So,

Speaker 4 (38:03):

You know, nobody should have a reason not

Speaker 3 (38:05):

To be able to do a wholesale deal, right? I mean, when you look at it like that, but it really, it truly is when it, when that contract comes to escrow, you know, and, and we escrow title, how are you thinking of it in your state? But that's when that's when you have to put that money down in our state. So once it's open, you have three to four days, you know, typically

Speaker 4 (38:23):

Bob said there was, if you have no money, you're probably not going to do a double close. If you have money, what you're going to really have to focus on is assignment of contract, because you basically are literally the broker in the middle of the seller and the purchaser. Now you're not a broker purely because we'll get into that about the legalities. Cause that's coming up here. But you're going to look at, if you have no money, you're gonna look at assigning, not double closing. So let's go to the next one, start searching for real estate. You can wholesale. Okay. So what are two subtopics of searching for real estate that you can also sell? How do I find a property? I want to wholesale? So how are we going to dig those up, Bob? I mean, you're doing, we were both kind of doing the same thing. Like pay-per-click is a good one. Facebook ads is a good one. Going after buying certain types of lists and probate. What was your list, Bob? What do you got? I mean, I know you've got, I'm

Speaker 3 (39:23):

A brand new wholesaler, how I'm starting out driving for dollars, dude. That's, that's how, when you go in those areas, you've identified that home that you want to buy and now what does, what is it, what is the rehabber need a homeless rundown? So you're going into those nice areas and you're just driving for dollars as the best bang for a wholesalers buck to go out there and then start directly marketing to those people. Because our house is very rundown. You know, if you've seen it, you might want to buy it, right? Because you put it on your list. So that's the quickest best way. I mean, if you're trying to get started and enroll in that route

Speaker 4 (39:55):

And when you're trying to get started, you guys, because I literally in the last, probably three months have mailed out 2000 letters to my market and I mail out letters every single month. And literally my list is driving for dollars. I have a spreadsheet that has thousands of properties as I drive through my neighborhoods in my market. I, every day I'm in that market, I tell myself, drive down different streets that you haven't been down. And I started thumbing addresses and I give it to my assistant. I say, put it in our spreadsheet. And then she runs the whole mailing operation. But I literally hand pick these addresses because I know if they call me like this is a deal I can put together. So that, that's a great one, Bob, I'm glad you brought that up. And then let's, what's the next subtopic? How do I buy a property? When I find one I can wholesale for a profit. So going about buying it, I think we kind of nailed that one and the financing, but I think we can skip that. And then the last one is deciding to assign the property or do a double closing. Bob. I know you've got a good story about that. Like, I mean, assigning the deal or doing a double closing, why would you do one or the other?

Speaker 3 (41:01):

It's actually a really good point. So I think a lot of times it just kind of everything's situational dependent and much required by the in-person. Right. So why you would double close it? For example the 16 unit apartment complex that we bought it was a double closing and the investor on that obviously, or the wholesaler on that made a really good chunk of money on it. And they didn't want to fully disclose to us how much they made. So I said, we're at first we're like, well, yeah, go ahead and show us everything, this and that and this and that, but they didn't want it. We're like, okay, well then we were like, then you can double close it and you can keep that information to yourself, you know, and on your profit and everything like that. And so they double closed it that way and then shifted us to the next day, you know, the next day we closed it.

Speaker 3 (41:49):

So there was some disclosure there and maybe it's maybe it's disclosure for the seller, maybe it's, you know, disclosure for the wholesaler. There's, there's a couple of different angles or there's just some sort of a requirement why, you know, maybe you're taking it to a different type of financing and that type of financing requires one person to be the owner before it can transition to the next. So you're kind of in that transitionary phase, we actually had a real estate deal that an investor had, and he didn't even buy it, fixed the place up, you know? So he was going to try to do the wholesale basically to, to a standard mortgage in the end. And that really failed. So he had his money tied up in the property. He hadn't removed the name from the other person yet. And then he ended up having to double close it. And I had to start the whole process all over again because it had to be in his name for him to sell it. You can't sell property. And so in the traditional world, it didn't work. So he ended up going back, double closing that, and that's kind of a little bit more confusing, but that's, you know, just another reason, you know, why you had double close versus

Speaker 4 (42:49):

Yeah. And it's another reason why you guys, you really need to understand

Speaker 3 (42:54):

Financing. Financing

Speaker 4 (42:56):

Is the magic in real estate because it's magic because it's going to allow you so many ways to leverage, but it's also the magic because if you don't have it figured out, there's a thousand different ways to skin the cat. But if you don't figure out how you can skin the cat, because you're not really good at understanding financing, then what's gonna happen is, is you're gonna find deals. You're not gonna be able to put them together and, and or the person you're wholesaling to, won't be able to put it together. So you have to know because you can be a really great wholesaler because you're super creative on the financing side. And you're giving ideas to Bob grant and I who want to buy this and not rehab, but we can't solve the problem, but you did. And it's like, whoa, this guy came up with a great idea.

Speaker 4 (43:35):

You know? So that's part of it too, is, is doing the research and understanding financing. All right, Bob, we got a couple we've been grinding at this for a little bit. Yeah. I know. Stop because this is an awesome topic that I think, well, it's not even, I think we both know a ton of people are asking questions about, so let's go to another one. How much money can I make wholesaling real estate? I think we nailed that one. Mom's made 50. I've made 50, 20 is pretty average. 10 is pretty good to five. You can make five, two all day long if you're doing

Speaker 3 (44:10):

125,000 was our last year gross wholesaling. So I mean, we try to do the projects, you know, that's not our primary thing, but we still pulled in an extra 125 K that'll get started. That's that's enough for most people live

Speaker 4 (44:22):

On. Okay the next one is, is it, is it illegal to wholesale real estate without a real estate license, Bob in Oregon? Is it illegal to wholesale without having a real estate license?

Speaker 3 (44:32):

No, but there there's some boundaries when, when people are starting to act as a real estate agent, you know, and there that's where that line is, but the state hasn't really caught on to what a lot of wholesalers are doing, but that's where another thing that I think it's coming and they'll start saying that you have to be so right now it's wide open. Yeah.

Speaker 4 (44:50):

I, in Minnesota here, it is not illegal, but like Bob said, I mean, you are walking a gray line because if you're, especially, if you're assigning contracts, you cannot represent anybody. All you can do is be the middle person and you need to disclose very transparently, but you need to be able to be the middle person that finds the buyer, finds the seller and it just goes through, but you can't represent whatsoever. Otherwise you'd be an agent or a broker. So assignment contracts, I would tell you, you just have to be very cut and dry on how you fit into an assignment contract on a double close. What I would tell you is that you have every right to go buy a property and you have every right to go sell that property that you own. So that would be less of a gray area. I think, I think that would be more of a comfort zone because you're an investor. You go buy your own asset and then you sell your asset. No problem. You can do whatever you want because you can represent yourself. However you want. It's when you get a lot in between a, a buyer and a seller and you're in the middle, and that would be your environment. You need to be very careful about that,

Speaker 3 (45:56):

Right? You're acting as an agent of the seller at that point. And that's, that's exactly the, you nailed that man. Cause that's exactly what you have to look at. Like if you're acting on behalf of them and not acting as the buyer to that seller that, you know, in the end, you end up just assigning your buyer contract to somebody else that you acted as a buyer the whole time. You're fine. But if you're acting as that middleman, like in, yeah, I've got this deal and like this and that. Let me talk to the seller. Let me do that. You're an agent and that

Speaker 4 (46:20):

In Oregon would be illegal. That is illegal. Okay. Let's go to the next one. Is wholesaling real estate easy.

Speaker 3 (46:27):

Nothing's easy, bro. Yeah. I mean, I think it's the best entry level spot that you can get into. I would say barrier to entry. I used to think being a real estate agent was the cheapest way to get started in any sort of thing. Cause then you could get a license quick. I now know wholesaling is you can drop me in any city in the United States, give me a hundred bucks in my pocket. Probably not. You need a hundred bucks, give me any city. I can get dropped into the market and I could find a deal. And probably within two weeks be paid a paycheck and be on my way to living in that city. You know? So that's kind of the way I see it with wholesaling once, you know, those there's some principles around it, which, you know, and when we do our future course, we'll have those principles all super dialed out for everybody to really, truly understand. So you can be successful and have that thought process where you can be like drop me off in any city and I can make money. Like I think it's

Speaker 4 (47:20):

Because real estate sales is something that Bob and I are. We, we definitely think you should get your real estate license from a million different reasons. So, but it, like, I didn't even think about it that way. Like Bob's like if you drop me in let's say Texas, right? And you said, okay kid, you know, make money doing real estate. Would I want to go get my real estate license or what I want a wholesale deal? And the thing about wholesaling a deal that's makes it easier than getting, being a real estate agent is number one. You don't have to get your, you have to get your real estate license. Well, that takes time. Well, I don't have any money. Number two though, like literally it's about as archaic as, as you can think of because you're literally the hunter and you just have to know here is my prey and how do I attract my prey and how do I, you know, get, get what I need, because that's what you're, you're literally in the survival phase.

Speaker 4 (48:11):

If I drop you in Texas and you have a thousand bucks and I'm like, make a deal happen, you're literally in the survival phase. And it's like, okay, what would I do if I was this? You know what I mean? And that, and, and so, yeah, I would say I could probably make more money quicker by wholesaling and deal than I would be being a real estate agent because also you dropped me in a market. I don't know anybody. I, you have to go consummate a relationship with somebody as a real estate agent. And then they have to trust you to sell their property and work with you. Whereas wholesaling, if I found somebody super motivated, they could care less who I am as long as I can close the deal.

Speaker 3 (48:47):

Exactly. And that's the, that's the great part about that, right? It's it's not so relationship-based, it can be more transactional based off of me, which is, which is really great. And that would be a great thing for us to do. We just, we hire some camera people and we go spend two weeks in a city.

Speaker 4 (49:01):

I know we just get dropped that first night or

Speaker 3 (49:06):

We're sitting out on the street going, this ain't gonna work for you. Better

Speaker 4 (49:10):

Start hopping. We got like 24 hours to go when it comes to that cold night air, I'd be knocking on doors at night. Okay. So let's do the last one here. And then I want one more story. One more Bob, Bob grand story. So is wholesaling real estate a good way to start becoming a real estate investor, Bob, just a quick answer. You think it's a good way? Yeah, man, looking back, I

Robert Grand (49:36):

Totally would have started that way versus being an agent. Yeah. Yeah. I

Speaker 4 (49:39):

Totally agree. I think, I think if you're sitting there in this survival phase and you're like, how do I get going? You know what start learn about wholesaling and and just get going Bob grant. So have you had a wholesaling experience that didn't go so well for you? Because again, you know, we don't want to have the podcast where all we talk about is roses and getting rich. We want to have a podcast because being a real estate investor is not easy and things go wrong and you have to be prepared to solve problems. So have you had a deal where it didn't go so right for you?

Speaker 3 (50:15):

Yeah. I mean, there's, there's always those deals, you know, and the cool thing about it is you really don't have to lose money. You know, you lose time and energy and effort. Typically you're not losing money, which is why I love it to start for most people. You know, I wouldn't say we've had one where we've lost anything huge. We've just lost, you know, the deal all in itself where, you know another deal came up that we wanted to do. And we're in the process of that one. We were going to close on it. We ended up going to wholesale it. And then that person wasn't that experience with the process, you know? So they weren't truly, they weren't a true investor. And so that's kind of what we misread in the situation. And then that deal fell apart. And then we're, and it's not like we're failing huge, but what I, what I failed on is I owe an obligation to the person.

Speaker 3 (51:03):

I said, I would buy the house too. And that is the biggest effect of at all. And that's the one thing I would hammer home to anybody that thinks they're going to get into real estate and investing in wholesaling, your obligation that you make to a seller is the most important obligation you can ever make because they've now put the trust in the end, they put their trust in you. So that's, that's where I was like, I gotta make this deal happen. Right? So it wasn't like I was going to lose, but I was going to let them down. And there ain't no way in the world. Am I letting somebody down when I've said that I'm going to do something. So we had to bust bust to find the next person to get in line and get that deal. Fortunately, there's enough. We left a lot of meat on the bone for somebody to be able to make a great deal. They did. And actually a couple of weeks ago, I just saw that house on the market. And I was like, dang, I

Speaker 4 (51:48):

Should've done that deal. I want to do it.

Speaker 3 (51:50):

Cause I love seeing things go from that, to this, you know? And that's where I'm at with you, bro. It's like, I love wholesaling is great, but I love that process. And, but back then, I just didn't have all the money dialed the way I do now. And it just takes time. And I just, we, you know, that's why we made a buck and a quarter horse on this, you know, last year and this year we'll probably make a lot less because we'll do the deals. Yeah. And

Speaker 4 (52:11):

I would say my story is recently, it's literally this last year I had two incidences. But the most recent one was literally like 60 days ago. And again, it hasn't, it has nothing to do with losing money. It has to do with losing opportunity. And what it was is I had this lady and I do infill development. So I do bigger projects. Like this would have been a, probably a new construction project where I would have gone in, probably torn her house down and built a 1.4, $1.5 million house. She, I had to got her off the internet. I had had a great conversation. I had never seen her house. I, she was pretty motivated and she's like, give me an offer. And I got her an offer for $330,000 to buy her one acre plot. And and it had a house, a one and a half story on it.

Speaker 4 (53:02):

Pretty good size or not one and a half story split entry on it. Pretty good sized split entry. Well, the problem was is that literally the day that I emailed her the offer, she's like, well, I want you to come out to the house and I want to meet you and all that, which I'm like, yeah, of course I would love to do that, but I'm going to Florida tomorrow and I'm going to be gone for like 15. So like, how's that? Oh, okay. Well, you know, that sucks. And she was disappointed. And then, then, and, and I, I remember now that I didn't tell her how long I was going to be gone because I knew, I said 15 days, if the deal was completely gone. Right. So Florida and I kinda just laid low. And I was just praying that when I came back, like, you know, I would have an opportunity with her.

Speaker 4 (53:47):

Well, of course a real estate agent came in while I was gone. And I came back to her like in the middle of the trip, because I just had that gut feeling. I'm like, I got to reach out to this lady. And I reached out to her. I said, Hey, you know, I got that offer. Do you want to, maybe we can just sign that offer and then, and then meet. And then, you know, and then if you don't like it, we can retract it. She's like, no, I think we're going to be okay. I think we got something else figured out. I'm like, yeah. And was, is I was going to get that for three 30. And then just yesterday, just yesterday I looked up the property and she sold it. Didn't do a thing. And she sold it for 4 75.

Speaker 3 (54:26):

Wow. So she made out great. Yeah.

Speaker 4 (54:31):

And you know, and I'm like, Hey, you know what, I'm a value driven investor and, and principally, and this is true. This is from my heart principally good for her because she was motivated and she could have sold me that property at three 30. And I could have maybe turned it for 4 75. I'd probably like my wife said, I probably wouldn't have, I probably would have tore it down. I probably would have built in 1.4 million miles on it because that's what I like to do, but I could have possibly done what she did, but you know what, I almost look at those situations and say, you know what good for her, because yeah, I could have helped her if that's what she wanted me to do, but she maximized her return on equity and she deserved that. Right. so, you know, that's a huge loss of opportunity that I could have maybe had, but again, as a value driven investor, Bob and I, we always look at things on both sides of the coin and you know what, I'm not mad about it because she got what she deserved and, and you know what, I just missed out an opportunity and I missed on the right timing.

Speaker 3 (55:39):

Yep. Yeah. That's totally it, man. That's how it works a lot of times, isn't it?

Speaker 4 (55:42):

Yeah. Crush this. If, if you listened for this entire thing some minutes to this podcast, then you know what you got to come to our value driven investor.com website, and you need to sign up to get on our email list because we have so many other cool things that are coming down the pipe and you know what, we're going to have this Facebook page. You can go do the value driven investor community, Facebook page, and, and friend us man become part of our community. Because if you literally listen to this for 50 minutes, then I hope we brought you a ton of value when it comes to the ins and outs of wholesaling. And we thank you for joining our podcast. Bob, do you have anything to,

Speaker 3 (56:24):

Yeah, just reiterating what you said, man, we're look, we love to meet. You love to potentially, you know, start looking at how we can all work together. And that's what it's all about. Community growing with each other and finding the like-minded people that we, we all can start really putting our heads together and coming up with new ideas and creative thoughts and stuff like that. That's, that's what I think it's all about. And, and doing it in a way that is truly, you know, beneficial for everybody and taking and helping that new person, you know, understand the value of real estate investing, but understanding it like with some ethical backing. And that's the one thing in the wholesale area that people can be looked

Robert Grand (57:03):

At just to tie it back to wholesaling. And that's something I think if you have the value driven investor value system and beliefs, you would always put the person first and understand that. So

Tim Murphy (57:14):

It'd be a great, I love talking to you, bro. I love doing this podcast and I can't wait till next time. Thanks for listening to the value driven investor podcast, where we lead by giving for more information about our community and what's new visit value driven investor.com. The value-driven investor podcast was produced by digital legend media in Minneapolis, build the or legend digital legend media.com.