STEP-BY-STEP GUIDE to closing a $14k wholesale real estate deal.

This is gonna be a breakdown showing you exactly how I closed this $14,000 deal that you guys might have seen on my Instagram. Here's the video. Yo, Mike. Yeah, what's going on, man? Can you hear me? Everything's going good, man. How's your day going?

It's good, it's good. You know, running, getting a bunch of stuff done. How are you?

That's good to know, man. Same here, just trying to get this deal sold. What's the last price? I know you went to go check it out yesterday and you brought your electrician out. Um, what was that last number that you got from your electrician?

I got it on the electrician or on the house?

No, no, on the electrician. What bid did they give you to fix it?

They gave me $10,000.

$10,000? For everything. For everything. That's the only bid you've gotten?

Yeah, I haven't talked to anyone else yet.

10. So adding that to the rehab cost, what are you at for the final offer?

I'm at 150 right now.

150. I feel like that's still too low, man. That $10,000 is kind of irking me though. Do you know what the breakdown is on that $10,000 for the electrician job?

Uh, not too much. The guy kind of just gave me a number. I still need to give him a call and get a little more detail on that, but, um, I'm looking into maybe getting another guy and getting a second, uh, second price on that just to compare. So, okay.

Yeah, I definitely want to get a second opinion just because $10,000 sounds ridiculous for that job. Do you have another guy out there? Because I have one that I know that I can go ahead and connect you guys and have him go out.

Okay, let's do that then. Just because I had one, the one that already went and did it. If your guy wants to go out, check it out, give me a number, and if it's better than that, then I'll go with that.

Yeah, because if, if we can get that bid, I know my guy's cheaper for sure. If we can get that bid to around $5K, what would be the last price that you could do on that, on the property?

You said $152,000 up?

$150,000, I could do $150,000.

What are you at?

I really want $161,000. That's what I want to walk away with with the property.

$161,000?

And based off $161,000, With the $5K bid from my electrician guy, you're at profit. You're at where you want to be at with the exit strategy on this one. Okay.

So what happens— Would you be able to come down on that a little bit if your guy, if your electrician's able to give me a better number? I'd be willing to come up on that just a little bit. What do you think your guy would be, or what do you think you'd be What number do you think you'd be able to get me?

Just from past experience and what I know he bids at, I think he would be around $5,000, but then again, I'm not an electrician. But if it does come to around that range of like $4,000 to $7,000, how close could you get to that $161,000 number?

I'm realistic that I feel like one I want to be at least at once. I'd say my max is $155,000. $155,000.

Okay, so let's do this. I'll go ahead and talk to my guy, see kind of what his estimate would be without even going to go look at it. And then if it does fall into that range, I'm gonna ask you to come up a little bit not that full $161, but if you can come up to like $157, $158 range and my guy's at his price, I think it should be a good deal.

All good. Okay, if you can give me a better number than 10, then let's for sure do that just because I'll be— I'll end up saving a lot more on that regardless.

Perfect. So we'll do that. Let me go ahead and give him a call and then I'll call you right back, or I'll just actually just text you his information so you guys can go communicate. All right, man, we'll talk soon. Thank you, Mike. Now you might be asking, Jay, I understand, I saw you negotiate, I saw you talk to him, I saw you brought your own guy. Let us know everything about the deal, give us a full breakdown. That's what I'm gonna do. So let's start from the beginning. How I got the lead, how I got the seller. Most of my seller leads come from cold calling, but I don't like to say that it's cold calling because we're calling specific people with specific levels of motivation. So I know that every person I talk to is is at least going to be someone interested in actually selling their property. So for this specific property, the seller Joseph had this property for 17 years, and for the past 2 years he hasn't made any money from it and it's only been causing him a pain. The reason that he hasn't gotten a tenant in there is because the condition of the property was just not viable and livable. But here's the thing, Joseph didn't have the money to make the repairs and make the property stand out up to current market condition So a tenant would come in and pay him every single month. So that's why he wanted to work with me so I could go ahead and get that property off his hands. How I actually got the lead? Simple, making the calls, right? The shit that nobody wants to do, but making the calls. And how I actually got the lead was I pulled a list of motivated sellers in that specific area where it's a non-metro city, the property values were under $200,000, The seller was a tired landlord. The seller was not living in that property, so it was a non-owner-occupied property. And then the property was vacant. Also, it was a high equity property. Now, the first conversation that I had with Joseph, obviously that wasn't recorded. I don't record every single cold call that I do, but it went something along the lines of, hey Joseph, my name is Jay. I'm a local real estate investor. I was reaching out to see if you ever thought about selling the property on Main Street. And Joseph was like, yeah, I've actually been thinking about it for some time, blah, blah, blah, blah, blah. I got the motivation out of him. I got the price that he wanted to sell for. I got the time frame in which he wanted to sell in. And I got the condition of the property. So now with that information, what I went ahead and did was I ran the numbers on the property. I made sure that if an investor came to look at the deal, it made sense for them. So what I like to do when I'm running my numbers for my properties is I like to make sure that if I was a real estate investor, I would buy this property with my eyes closed. For you to have that much trust in your numbers, the DISPO process, the process of actually selling the property to a real estate investor, is going to be way easier. So I went ahead and ran my numbers, then the follow-up call went something along the lines of this. Hey Joseph, this is Jay. Remember me? We spoke about the property yesterday. Great. How's your day going? Amazing. So I wanted to go ahead and check in. I had a couple more questions about the property. That I want to see if you could clarify. Do you have some time to speak right now? Great. So he answered all my questions. I let him know, hey, so by the end of the call, if everything makes sense, if we can give you the offer that you want to walk away with, and you're all good with our systems and processes, then would you be opposed to signing an agreement today and getting this process started? He let us know, yes, I wouldn't be opposed to it. Let's get this done. I'm ready to go. Great. So I ran him through our process. I explained how we work as a company. And how easy it would be and what his life would look like after selling the property. And then he was all ready to go. We got the contract signed through DocuSign. It was a simple process. I obviously stay on the call for every single one of the times that I get my contract signed just to make sure that they understand the agreement, they understand what they're signing, and then they don't have any questions that are left unanswered. So once I got that agreement signed, I went ahead and called title companies in the local area asking, hey, This is Jay, I just wanted to see if you guys work with wholesalers, double closings, if you guys work with assignment of contracts. You do? Great. Do you charge any money up front? This title company specifically didn't, so I was like, cool, let's work with you guys. I asked them, hey, what's your title officer's email so I can send over the agreement? And if you could also send over the wiring instructions for my buyer to send over the earnest money. And they were like, okay, we'll just reply to your email. Great. Now I have the first agreement signed and I have the title company ready to go waiting for an assignment of contract. As far as Mike, you guys saw the negotiation. If you didn't, here's the video. Mike picks up the phone. I already called him earlier today, but I think he was busy. Yo. Yo, Mike. How's it going?

I'm good. I'm good. How are you, man?

I'm great, man. I can't complain. Life is good. How's everything going on your end?

Everything's been good. Uh, your electrician came by to check out the, uh, the house the other day.

Okay.

So, um, talk to him a little bit. He gave me a number. He gave me $5,300, so a lot better than my first guy initially.

Yeah, yeah. Hey man, that other guy was at $10K.

Yeah, I don't know where he kind of came up with that number, but I talked to him. I had another person also come out to the property, but they gave me a higher price.

Okay.

So I'll probably end up going with your guy over here, so.

Perfect. So we're at $5,300. Let me just look at the budget that we had for it. So we plug $5,300. Yeah, I mean, you're on par for your profit goal. What's that, uh, what's that last price that you're at so we can move forward with this?

I know you wanted $61,000 or $161,000. I remember we spoke last time, I was at $155,000. And I know I said I was a little bit willing to work with you if we're able to get a good deal on the— or if your guy gave me a better number. So is there any way we could probably meet in the middle somewhere?

I know last time I came down to $158,000, and I think that's the best that I would want to do on this one since it's our first deal. I think $158,000 is still a good deal. Like I said, you're at your profit goal with what you're going to do with the property, and it's the first one. So let's— I say let's just go at that $158,000. I got you my electric guy, he got you cheaper so that way you're able to save some money there. I said let's just go for it. I think that $158,000 is a good number. I'm happy, you're happy. Let's get this done and then we'll work on a bunch more deals in the future.

Okay. All right, let's do the $158,000. Only thing that I would say is if you're able to just bring me some more properties, that type of thing, that'd be great. I want to keep working together. So I mean, if you can give me some more stuff, then I'll do $158,000.

Perfect. Let's do that. Do you have your email open?

Yes, I have it open right now.

Okay, let me know when you're on there so I can know if you got the agreement? Uh, nothing just yet.

Nothing yet? Okay.

No, it should be sending now. And then I'm also going to send you the wiring instructions for the earnest money. Um, if you can get that in by tomorrow— I know it's Friday, so that'd be the last day before the weekend— let's get that earnest money in. We'll do $4,000 for this property. And I just sent the agreement, so get that signed. That's through DocuSign, and then the wiring instructions are also added to that email.

I just got it just now.

Perfect. So let's get that signed. I'll put it to the file for this property on my end, and then we should be good to go. Closing is still set for the Same date? Yeah. Let's do this, man. First one.

All right, cool. Sounds good.

Mike was a special case. So let me tell you about how I found Mike. So how my DISPO process normally starts, my process of actually finding a real estate investor to purchase the property and fund the deal, is I normally start with real estate agents in the local market because they are normally the professionals. They understand the area and the prices better than I do as a virtual wholesaler. I'm sitting here in Dallas, I understand Dallas prices, I understand Dallas numbers. In these other cities that I've never lived in or stepped foot in, I have no idea what specificities are people looking for and how the market really, really works. I can know a lot about it, but at the end of the day, I'm not going to be as good as somebody that's currently working in that market. So normally what I'll do is I'll reach out to real estate agents saying something like this: Hey, my name is Jay. Me and my team, we work with off-market properties. I was reaching out to you because I saw you helped I'm looking to close this deal, this deal, this deal. Just reaching out if you know anybody in your network or any real estate investor that you know of or have a connection with, if they're looking for another project in this zip code. Normally they'll let me know, yes, I do. Can you send me over the property details? I go ahead and send it over to them, ask them if they have any questions, and then follow up with a question saying, hey, what time is it good for me to call you back to see if anybody's interested in the deal? And that's how you really put the pressure on them. Letting them know, hey, I'm serious about selling this. And right before you get off that call, you want to let them know, hey, just before we get off the call, I want to let you know, hey, if we do end up funding on this deal, closing on this deal, I would love to repay you. We can either do a flat fee commission or we can do a percentage-based incentive, right? So that puts it in their head at the end of the call of like, hey, if I send this deal out and something actually closes, I'm going to get paid for it. I'm not doing this shit for free. So I did that with a couple real estate agents. Unfortunately, we didn't get much good of a response. We got a couple lowball offers where it was under my under contract price, but it was a little bit too low where I knew the seller wouldn't go down to that number. So now the way that I found Mike. So I actually pulled a list of cash buyers in the area that had bought properties in the last 3 months. I made sure to only pull LLCs. I made sure that none of them were owner occupied. I make sure that all the property closings were made in cash. Cash. I went ahead and obviously skip traced it, I started making calls, and then we landed on Mike. The first conversation went along the lines of, "Hey Mike, this is Jay. I was just reaching out to you because I have this off-market property in this zip code and I saw you bought in the area before. Just seeing if you're looking to buy another project in the next coming weeks." And Mike was like, "Yeah, let's go ahead and do it. Can you send me over the deal and I'll take a look at it?" I'd let him know, "Yeah, let me send it over to you. Would you rather do it through email or through text?" He let me know, "Hey, Texas faster." I said, "Cool." I sent over the link. I asked him if he was able to open it. Now the link has a, what I call a "dispo package." It is pretty much a presentation of the deal, all the pictures, all the numbers, all the comparables, all the rehab numbers, how much money they're going to make from it, why they need this deal. All that information concise in a pretty image. Nobody wants to see a bunch of jumbled up numbers of 3-bed, 1-bath, this, this, this, this, this, this, this. Nobody wants to see that. Somebody wants to see something presentable, and it's also different than every single other wholesaler out there. So then I went ahead and called him back later in the day. I asked him, hey, what did you think about the property? He brought up a couple concerns. I answered those questions, and then I let him know, hey, when are you able to go look at the property? He let me know, so we set up an— he let me know when, so then we set up an appointment for the next day for him to actually go look at it and take pictures and see if he needed to bring any specialists out. In this case, he needed to bring his electrician out And he didn't have a specific one he worked with, so he just found one and they tried to bid him for $10,000. I have construction experience from working with my dad and family members, so I know $10,000 for that job, for that size property, didn't make any fucking sense. So I let him know, hey, I know a local electrician in the area, let me send him out with you so he can get you a quote and see how low he can get. Because I knew at $10,000, Mike was not going to be in the budget that he wanted to be in, therefore not making the amount of profit that he wanted to make, therefore him not buying the property. So I took matters into my own hands. I got an electrician. I made sure he had sensible bidding. So I sent them over to look at the deal. He got a good price. Mike was on board. Mike knew how much money he wanted to make from the deal because I asked them. And then we got everything good to go. Mike was like, okay, send over the agreement. I sent it over through DocuSign, made sure he signed it, and we went ahead and sent everything over to the title company. We got earnest money for $4,000, and all we got to do is wait for closing. In this specific video, I only mentioned a couple of DISPO strategies, a couple acquisition strategies, and a little bit of the scripts that I use to actually speak to these people and sound like I know what the fuck I'm talking about. If you have any other questions, my Instagram is down below. You can leave them down below in this video. Make sure you like, subscribe, and if you want to work with me one-on-one showing you exactly how to do this consistently in your wholesale business or your future wholesale business, the link is down below to work with me. Apply and we'll see how we can help you. See you guys soon.