How Nick Made $40K on His First Wholesale Deal!

Welcome back to the channel, everyone. Today we're going to talk about how you can make big bucks wholesaling your first deal. A lot of people think that wholesaling might not be real, but I have a situation, or I have actually someone that is in my program that made $40,000 on their first deal, and I'm going to show you, and we're going to break down exactly how he did it. Let's tune in. Before we dive into how Nick got $40,000 on his first wholesale deal, let's talk about my free Facebook group and how I want to invite you to join because it's a great community. We have free resources in there and it's a great place to be a part of if you're trying to grow in your real estate journey. So I want to invite you to check it out, Painless Flipping. Just type that in Facebook and in the Facebook search bar and you're in, just join. So let's talk right now about how you can make big bucks on your first wholesale deal, just like Nick did. He made $40,000, that's right, $40,000 on his first deal. Now a lot of people here might be like, "What? Are you serious?" A lot of people don't even make $40,000 in a year. So right now we're going to show you exactly the breakdown, how he got it done, you know, what happened, how he found the buyer. It's a case study. I'm going to break it all down for you right here in this video, but I want to let you know that this is for real. My first deal I made $5,000, okay, so he really crushed it on his first deal, and he also told me which is really cool, you're going to see that he had other buyers that were willing to pay him, you know, $15,000, $20,000. So he wasn't going to make that big of a spread. Obviously $15,000 and $20,000 is great, but he was going to settle for like $15,000 and $20,000. But then he found another buyer through a strategy I teach that was able to pay $40,000. He just found a better buyer through a strategy again that I teach. You're going to see in the video. So check it out, see how he was able to do it on his first deal. Guys, this is not a joke. He hasn't done any other deals. This is— I know, cause I've been coaching them and showing them how to do it. So let's dive in. Tell me what you think. Leave a comment and let's dive in.

You just did your first deal for $40,000, right?

Yeah, man. Yeah.

Does it, does it feel real?

No, not at all.

That's nuts, man. And basically, we want to dive into your experience as a real estate investor, how you got into this, break down how that deal happened and your goals and what you're trying to accomplish. And so everyone that's listening can learn from your experience avoid the pitfalls, maybe, and learn how they can make $40K on their first deal too. I didn't make $40K on my first deal, but maybe they can. You know, everyone's listening.

Yeah. Yeah. So it started when I started hearing about wholesaling was in my senior year of college at the start of it. So I'm down here in South Carolina, went to Coastal Carolina, and I was hearing all this wholesale stuff. I'm like, oh man, these guys are— there's guys getting in so young. I see 18, 19, 20-year-old guys doing it, showing what they're making off of it and how successful they are with it. I'm like, oh, no kidding. So then I started, you know, watching some YouTube videos. Obviously, Jerry Norton was a big one I started watching on, right? And following some basic stuff, you know, I would go out there and look on Zillow. Zillow was basically my best friend. I'd go out there, just look for for sale by owner properties, anything on market, and kind of just get used to, you know, going through deals and, you know, calling, talking to agents that I'd never talked to before.

Was it difficult to kind of start having those conversations, especially not knowing? Yeah, no, it was—

I mean, phone What is that? Being scared of phone talk. It's real. I mean, yeah, it's definitely real. I've always had an outgoing personality. I've always been able to talk to people face to face, but over the phone, it's just— it's weird. You'd think it'd be the complete opposite. You'd think it'd be way easier. No, it's kind of a little bit more difficult in my opinion.

Maybe because you can't see like their gestures or like how they're reacting. Maybe it's like you don't know how it's going, right?

So I realized, you know, in this game, A lot of it's, you know, talking around connections, getting, you know, building, getting your name out there, telling people what you do, what your services are, and then, you know, you help out agents, they'll help out you. It's what I look at it.

100%. Yeah, it's all about getting your name out there and letting people know what you do because there's a lot of people within your sphere of influence that you can work with. So let's talk. So that was how you got started, was college. And then did you get started while you're your last year of college or were you just starting to learn? And then when did you start taking action?

[Speaker:NATHAN_PAYNE] I was starting to learn and then I started taking action 2021, winter of 2021, I believe. That's when I actually started going out. I would do driving for dollars, do all that, do anything to get my first deal. Meanwhile, at this time, I had no clue how to exactly construct a deal at all. My whole thing was I'm just going to go find a deal and see what happens and then go to help. —on Facebook. Right. It's kind of what I was— that was my mindset.

And I think that's probably where we originally got connected was Facebook, right? Yeah, yeah.

Then I got connected with you. I saw you actually messaged me from another group. I believe it was Wholesaling Houses Full Time. And you messaged me to come join your group. I'm like, "Oh, okay. I'll come join this group." That's right, brother. And join your mentorship program and learning a whole lot.

Yeah, that's amazing. Wow. It's crazy how things escalate or not escalate, but like happen like that, right? Yeah, yeah. So tell me, let's talk about this deal. You're taking action. I know you're calling agents, you're calling to find buyers like I was showing you. Tell me how this deal happened.

So this deal actually happened just through word of mouth. I had friends at home who knew what I was doing. They knew kind of that I was investing in real estate and helping. A lot of people thought I was flipping at the start, but then they realized, you know, I'm doing this new thing called wholesaling. And a lot of people don't know what that is. Believe it or not, a lot of professionals in real estate who've been been in it for 20 years plus don't even know what it is. I mean, I usually have to explain it to someone new at least once a week. Right. So this deal actually came across an old friend of mine. He pretty much reached out to me, was like, hey Nick, listen, my mom, she has dementia now. She's going to an assisted living facility and I need help with her at the house. Big house. It's what he grew up in. I was like, okay, I'll see what I can do. And he's like, I don't have time. He's a police officer. Very busy. And I said, okay, I can definitely help you out and get the ball rolling, and hopefully we can work together. So he didn't want to list. I told him to. I was like, listen, listing is going to be a lot more process. You're not going to sell as fast as you want to unless you maybe consider going down my path, about what I'm about to tell you. So he was all open for it. So then I told him—

because a lot of people are like, whoa, are you sure you want to? Other people are like, You know, should you tell them, should you not? I always tell them, yeah, list it because you're going to make the most. Yeah, you did the same thing. Great job. Yeah.

And if it wasn't for the fact that he's busy, he needs to, he needs to sell, he needs to help take care of his mom, then he probably would have ended up listing it. Right. Um, but circumstances, you know, wholesaling, we want to reach out to motivated people, people who need to sell fast and easy. That's the, it's the big thing. And he was one of them who were connected all the— I mean, matched all the points to it. And, uh, excuse me, he needed to sell. So I told him, you know, listen, this is what I can do for you, and, um, hopefully we can get you out of this situation. So, uh, at that point I went straight into analyzing the deal. Okay. Got pictures of the house. I actually— I actually— my parents live right down the street, and I had my dad go take pictures of the house for me. There you go, there you go. Daddy-o came in clutch for that.

Would you call him Cat Daddy-O?

No, I just said Daddy-O came in clutch. Oh, Daddy-O.

Okay. I was like, oh, cool.

Yeah. So then at that point, there was a— this is a fairly suburban neighborhood, very, very nice neighborhood. I mean, I grew up in it and people were starting to move out. So there were some pretty juicy comps in that area that were sold in the last 6 months. So I had some good numbers to work with. It wasn't one of those things where I had to dive deep into finding a good comparable for it. I was at the back. Like, I didn't have to to do really anything to calculate the ARV. Okay. So then once I calculated that, it came out to close to— I was calculating around $650,000, and then I called an agent who actually sold two properties there this year in that same development, and I told him, I said, "Hey, I got this property. I'm getting ready to put it under contract. I was wondering if you could do your own due diligence on it, run by it, and we can work together. Maybe whoever I assign it to will flip it with you. I'll recommend you to them." And you're just connecting all the pieces.

Great job. Networking skills on point right there.

Yeah. And then he's like, "Yeah, sure. No problem." So he did his due diligence and he came back to me and he's like, "Hey, man, this property is worth, I mean, if it's fixed up, $740,000." Wow. "$750,000." So my numbers were a little off, but in a good way. I mean, he told me, "This is how much it's worth." And it was a good neighborhood. The house was taken care of. It probably only needed, max $40,000 in repairs, basic cosmetics, flooring, maybe cabinets. Yeah, just a basic update. See, if it were me and I was there, I would have tried to flip it myself. Of course. Yeah, maybe whole tail it or something like that. Um, but that's not, that's not the case. I'm in Myrtle Beach, so that's not happening. Yeah. Um, so then at that point, um, I use your lovely contract, had that filled out, sent it over to the seller. Easy, right? Easy. Yeah, simple. Yeah. We agreed on a price. We agreed he wanted to get around $500,000 for it. Negotiated down to $475,000. So that was our, that was our price. That was our bullseye.

And then you were negotiating it. Did you already kind of have an idea of a buyer in place or were you just—

Yeah. So before, you know, I was definitely doing your method. I was reaching out to buyers I have in that area. Okay. Having them look at it and see if they'd be interested. And there was a ton of interest. I mean, I had about 5+ buyers that were very interested in it. And that wasn't even posting the deal. I didn't even post it on Facebook or anything. I mean, I can't imagine how many more interests I would've got if I posted in some groups on Facebook and whatnot. And so from that point, I had some buyers go walk through. I had 2 or 3 buyers walk through it, and they all wanted it. I had 3 that wanted it. One of them, I had 2 of them were, they offered me around $585,000 for it. And then I had that one come in at $515, offer $515 for it. And pretty much he said he's going to live in it. He's going to end up living in the house. Did you say $585 or $485?

Wait, you said two came in at $585, but you— do you mean $485?

Yeah, $485. Yeah. Is that for $585?

No, not that big a spread.

That was wild, right?

Okay, so, so you had someone— wow, you had two at $485 and then you had one at $515. So that— what is that, like $20, $30 more than the other people?

Yeah, just about. And I had a couple of people come in only offering $490,000 for— I'm sorry, $480,000. So I would have made $5K assignment, which is fine.

I mean, yeah, but $480,000 versus $5,000, come on. That's amazing. Yeah.

And then at that point I was like, okay, now I got something. So I ended up sending in the contract to a title company, got it under contract. We did 14-day due diligence, which was just fine, and we did closing right like 2 weeks after. Dude, great job.

And so how did you find that ultimate buyer that paid— that you assigned it to?

I actually found him through a mutual friend who was also an agent in that area. Wow. He's got a lot of connections in that area as well. So he helped out with bringing that buyer in.

Did he get a commission as well, or did he just—

Yeah, I paid him a commission. Cool, cool. Such a good buyer, why not, right? Yeah, yeah. I mean, he He did it. I mean, he handled bringing the buyer to the property, walking through with them, finding out what they want, and then it worked out. It was supposed to be a cash purchase, so I actually— he wanted to finance a little bit of the deal. So, you know, I went, I used my ChatGPT, asked them what I should do. And then based off your coaching and your training sessions, I had an addendum signed, and then I had some terms, you know, purchase with the option to finance. Okay, got that signed and sent in. So it all, it all went really smooth. I mean, it could have— there could have been a lot of hiccups in it. Yeah.

But did he end up getting a normal loan on it or did he do cash?

He put a majority of it cash down. Okay. And then he got funding for a small amount of it. Hmm. Interesting. So, yeah, it was just— and then he's planning on living in it for now and flipping it.

Well, those are your best buyers, the ones that are willing to live in there while they fix it. They pay top dollar, as you can see with the other guys that came in lower. Right. I want to say something, let everyone know that's watching this or that will watch this is it's about finding the best buyer, right? Because you just explained to us that majority of people came in at $490,000, $485,000. So you're making like a $10K, $15K. But then through your networking skills, through reaching out to people in your sphere, you're able to find someone that would— that paid instead of getting $10,000 or $15,000 wholesale fee, which is good. You made $40,000 because you were, you were really resourceful. Amazing.

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