In this blog post, we’ll dive into the inspiring story of a wholesaler who managed to rake in $60,000 in under a month and how his high school student son followed suit by securing five deals under contract. This remarkable journey is more than just about making money; it’s about teaching the younger generation valuable business skills.
The First Big Deal: $10,000 in Profit
The story begins with Stephen, a budding wholesaler who made $10,000 on his first deal. The strategy he used is known as "driving for dollars." He found a rundown house owned by an out-of-state resident. After reaching out via postcard, he sealed the deal and sold the property in just seven days.
"I think it's really compelling if you want to get your kid involved with making money and starting a business. This guy really laid out a great plan that you might be interested in." - David Lecko, CEO of DealMachine
Key Steps in Sealing the Deal:
- Identifying the Property: Look for rundown houses with potential.
- Outreach: Send a postcard or email to the owner.
- Negotiation: Get the property under contract.
- Finding a Buyer: Partner with experienced wholesalers if you lack a buyer's list.
- Closing the Deal: Sell the property and split the profit.
A Multifamily Success Story
Motivated by his initial success, Stephen soon found another opportunity—a multifamily property. He partnered with the same wholesaler who helped him earlier and managed to sell an "eightplex" property for $550,000, making a substantial profit in the process.
Lessons Learned:
- Network Building: Developing relationships with experienced wholesalers can significantly speed up the process.
- Diversification: Don’t limit yourself to single-family homes; explore multi-family properties as well.
- Local Market Knowledge: Knowing your local market can be a game-changer.
Transition from Lending to Wholesaling
Stephen was a lender before entering the wholesale real estate business. Despite the potential to earn significant sums as a lender, he found wholesaling more appealing. The decline in traditional lending opportunities and a successful off-market deal for an 18-unit apartment complex convinced Stephen to make the shift.
Why Wholesaling?
- Higher Profit Margins: As demonstrated by Stephen’s $240,000 profit from an off-market deal.
- Scalability: Unlike lending, wholesaling allows for rapid scaling of operations.
- Flexibility: Ability to work from anywhere and at any time.
Dialing for Deals: A Strategic Approach
The story takes an interesting turn with the introduction of a dialer system. Stephen incorporated a dialer in his process, streamlining cold calls to property owners. This approach proved highly efficient, leading to numerous deal closures in a short time.
Effective Use of Dialers:
- Consistency: Regular cold calls every day.
- Smart Lists: Utilize software to pick leads based on specific criteria.
- Teamwork: Have a dedicated team or individual focusing solely on dialing.
A Young Entrepreneur’s Journey: Stephen’s Son
Perhaps the most inspiring part of this story is how Stephen involved his high school son in the business. The teenager started by driving for dollars and then moved on to making cold calls. This hands-on experience netted him $7,000 in just two months.
"For a 17-year-old, that's pretty good money."
How to Get Kids Involved:
- Start Small: Begin with simple tasks like driving for dollars.
- Demonstrate the Process: Show them each step involved in a deal.
- Offer Incentives: Pay them for their effort and success.
Beyond School: Real-World Business Education
Stephen strongly believes in teaching his son how to earn a living beyond traditional education. His son previously ran a vending machine business, which taught him valuable lessons in marketing and customer service.
Key Takeaways
Simplified Wholesaling Model:
- Driving for Dollars: Identify and mark potential properties.
- Smart Leads: Use updated and comprehensive leads lists for cold calling.
- Effective Dialing: Streamline the cold calling process with dedicated systems and personnel.
- Family Involvement: Teach and involve younger generations in the business world.
Final Thoughts
Stephen’s journey from lending to wholesaling, his significant profits, and his approach to involving his son in the business provide valuable insights. His story underscores the importance of consistency, effective networking, and leveraging technology in real estate wholesaling.
For those aspiring to make a mark in the real estate industry, these lessons offer a roadmap. Don’t miss out on your chance to learn from the best and possibly set your kids on a path to financial independence, just as Stephen did.
Remember, the world of real estate is vast and full of opportunities. Whether you're a seasoned investor or just starting, there is always something new to learn and apply. Happy Deal Finding!
