Are you tired of your 9-to-5 job and dreaming of calling the shots as your own boss? You might be in the same spot where Cole Stephenson once was before he discovered the power of real estate wholesaling – a strategy that requires zero dollars but can potentially rake in significant finders fees.
The Journey to $10,000: A Chat with Cole Stephenson
Cole, a fan of our good friend Jerry Norton's treasure trove of educational content, took on Jerry's challenge to make five offers a day on distressed properties during his spare time – all while still employed at his day job. Mornings were for work obligations; post-work hours were dedicated to scouring Facebook Marketplace and similar platforms for for-sale-by-owner listings.
Utilizing his sales background, Cole initiated conversations with a simple yet effective real estate texting script. His criteria weren't complicated – he was searching for urgency, an indication of a motivated seller. The magic happened locally within the Utah real estate market – Utah County, Davis County, Salt Lake County, and Weber County to be specific.
The Power of a Simple Question
"Hey, why are you selling, if you don't mind me asking?"
This question opened the door to understanding the seller's motivation. Many responses involved desires for bigger homes or job-related relocations – indicators of less urgency. Yet, when a lady who had recently inherited a home in Provo, Utah, expressed a desire to swiftly offload the property, Cole saw an opportunity.
Building Rapport Over Numbers
Cole's sales experience taught him the value of human connection. After creating rapport on the phone with the seller, he managed to strike an agreement on a fair price, despite competing offers surfacing during their negotiations. Impressing the seller with his personable approach, Cole negotiated a deal at $355,000 – a mere $5,000 bump from his original offer, despite competition bidding up to $390,000.
The Art of Real Estate Wholesaling: Understanding Due Diligence
Cole's initial offer might seem daunting, especially being his first. But with the guidance of his father, who owns a title company, he understood the importance of a due diligence period – a window of time for inspections, lining up buyers, or backing out of the contract without the loss of earnest money.
Securing the Deal and the Buyer
Cole's proactive approach led him to a buyer just three days after getting the contract signed, through a connection of his dad's. By working with a seasoned investor, Cole stepped into a joint venture agreement which ultimately resulted in a $10,000 paycheck on his part of the profit split.
Lessons Learned and Growth
Despite the success of his first deal, Cole admits there's always room for growth. His current focus is on marketing to genuinely motivated sellers rather than a broad sweep, which has fine-tuned his sales process significantly.
Embracing the Wholesaling Lifestyle
Quitting his job was a monumental life change for Cole, fueled by the desire for more than the nine-to-five grind could offer. Entrusting his instincts paid off. Freedom, challenge, and the joy of building something of his own encourage him to leap out of bed each day eager to start working.
The Excitement of What's Ahead
For 2024, Cole is set to acquire 20 properties for long-term rentals while spending precious time with his family. While you won't find him scrolling on social media, his story is a testament to the power of wholesale real estate.
The Takeaway
What Cole's experience teaches us is that real estate wholesaling can pave the way to financial autonomy. It’s a world where determination meets opportunity. Whether you are at your desk juggling a full-time job or making your mark in the wholesaling arena, remember – your journey to that lucrative finder's fee might just be a five-offer-a-day challenge away.
And for further inspiration and practical tips, tune into our 'DealMachine Real Estate Investing Podcast,' and ensure you don’t miss an episode by subscribing. Leave us a review with your thoughts and join us in the pursuit of financial freedom. Or check out other blog posts below to help you on your real estate journey.
