First-Time Wholesaler’s $18K Success Story with the Payneless Flipping Strategy

All right, what is going on everybody? We are live on the painless flipping Podcast. I’m here with Hi, what’s up, brother?
Good afternoon, AJ, it’s good to see you.

Good afternoon, AJ, it’s good to see you.

It is good to see you. Hey, hi. Um, so the reason why we’re meeting today is because we were talking a little bit we’ve known each other for a little bit through some of the coaching communities we’ve been a part of. And you let me know about a deal that you recently just did where you made, was it your first wholesale deal? It was my first wholesale deal that actually wholesale? Yes. Okay. And how much did you make on that wholesale deal?

Was 18. Seven to be exact? 17 475. Close to 70 and a half $1,000.

Oh, my gosh. So you made you sit around. Sorry. Something was happening in my ears. You said You Made What 17 around between 17 and 18. That is amazing. Now you’ve been doing How long have you been going at wholesaling for.

I haven’t been in wholesaling. I’ve been in real estate for 12 months. Exactly a year. Okay.

And what would you say? You’ve known about wholesaling for how long would you say? Since I started, I knew flipping and wholesaling.

Okay, but you’ve you went more towards the flipping route, correct?

That is correct. Yes. So tell me tell everybody since this is your first wholesale deal, what made you decide to wholesale this one versus flip it? So the reason I decided to go into flipping was I just couldn’t handle my personality. I just couldn’t handle dealing with agents getting attended contingency tell them tell them I want to close in it get people in and and they asked me who’s coming in? Why are they coming in? It was kind of a lot of shady things. I mean, it’s not bad. It’s okay for someone who can do it beautiful, but I couldn’t. So that’s why I joined the flipping side of it. So I bought myself. That particular property.

We wanted a flip it it was listed for $200,000. We came across it back in August. We worked with my wife, she reached out to the agent and we gave an offer. We use quick estimates we give an offer for $140,000. She came back 200 areas, we’re not lowering it. Anytime we followed up again and September, October and November. We follow up every three to four weeks. Good for you. And it came December, November, mid November.

So we looked it up and we say it’s expired. So we call the agent we had the number we said we see the listing is expired, we would your client still be interested in selling the property. She said yeah, let me run it through the client. She came back what’s your offer? We said 140 She said no problem. 140 Let’s write it out. We got a deal. So she listed it back for 200 we locked it in for 140 I went down there and I had a look at it. And I decided I gotta be at 9390 to $95,000 it doesn’t work so no shame.

That’s what we do. We go away. Sorry, man, we gotta be at 9095 80 Sorry, I can’t wait to get away Gatwick I still had it on the contract my 10 days that I always put in. I was still within and I was talking different different you know, exits I needed I needed to deal I needed to make some money. So boom, it flashed in my mind because you always come up into coaching and you’re always says that we can do it reverse wholesaling, you call it right.

So basically having the buyer and then find it for him. So that basically solves all my problems. So I call that guy I usually have one or two guys that I pay 50 bucks for a visit to go to the property since it’s a virtual market. Okay, they go there, they get me a video, they tell me what’s going on. So I know they do flips and there’s a how’s it going? He said, I’m dry. I need something I said okay, beautiful. No problem. I have a couple of things I can cause and everything.

So do you want to have a look at it. You said with pleasure. So I gave him the address. He said Listen, I’m not a wholesaler, I’m not you give me the number. I’ll let you know if we can make it work. So I gave him the address. And he ran the numbers. He came back to me I can do 160 I said, that’s beautiful. You know, I’m at 140. He’s at 160. We can do 20 Okay. And he said I want to go down to the property. He goes out there the property comes back the basement has to be the down underpinning blah, blah, blah.

I gotta be at 130. I said, Okay, let me think about it. So I went back to the agent. I said, agent, listen, I understand you can do 95 Let’s do 112 110 112 She came back after a day regatta yet 112. So that was the first thing. So I had buyer at 112 at 130. I wasn’t 112 And then I was working with a title with with the title. They made it really easy they worked with although I know you’re a big fan of reaching out to them. So boom, I just went to the title that I usually use. They told me they can do my instead of doing a wholesale fee, they can do a how do they call it?

Would it be a consultation fee directly.

So basically, it’s not it’s an assignable contract. So the agent didn’t know anything until she got the HUD and she didn’t even know she didn’t even know when settlement came she didn’t even know because they always look on their side right they always work with the money they They stay away. Then I made a separate contract with the end buyer. Anything it came to closing everybody closed nicely. And as a matter of fact, the agent texted me yesterday. She told me Hey, I have another deal. Are you interested? Nice. So basically, it’s a wholesale deal. Everybody’s happy.

This is the way I mean, that’s amazing. Yeah. So So yeah, I appreciate you letting me know, it makes me really happy to see that you saw success. So just so I can understand. So this buyer, you already knew this guy, he’s had been taking pictures for you. Since you don’t live in your market. It’s a virtual market. So you reached out to him? Because you knew him already. Right? That is correct. I knew him. And I asked him, Hey, do you buy properties? Do you float? Do you do anything? You said yes.

And I’m dry. I need something beautiful. And I’m probably going to do the same thing now. Like we’re doing acquisitions in house. So I come across properties that I have to let go because they don’t fit. So I’m planning on putting a 1015 20 people in the neat properties today, tomorrow and just move it up to them. Amazing, amazing, painless way to do it. Right. Especially if you come into things that you don’t meet your criteria, right, like you give it to them, and they can let you know what they’re willing to pay.

And that’s exactly what happened. Right? He told you what he could pay, then you got it lower than you went saw it and then you even got it. You had to renegotiate. But you got it done. That is correct. Yep. No flips. No, you’d have to pick up a hammer. You didn’t have to hire any contractors. It was just piping business. Nate, I’m in the wrong business, Nate. Yeah. This is the business to be in. I mean, no, I’m kidding. I mean, you could do it all. But yeah, to the folks out there. I mean, we’re looking for the first right, just don’t be afraid. Just just pull the trigger, go for it and love it. There’s no other way to do it, you got to believe in it and go for it.

That’s That’s exactly right. So and you said that this, your buyer was able to pay you separately from a wholesale fee. So you didn’t technically assign it to him. You were able to get him to pay you was it through an invoice or outside of the contract. So
I’m not sure how they do it. But basically, it’s it’s I do a standard agreement of sale. With the end buyer, the property for 130. I send both contracts to title and boom, they get 100 the end buyer becomes the buyer and my place to sell or an agent or under on the seller side.

I’m consultation fee. And that’s it.

I love it, man. Yeah, I’m not sure what the title company I know, there’s a lot of different things you can do. But it seems like the title company took care of you. They’re able to make that. Yeah, that’s amazing. Wow. So tell us so you originally didn’t want to get started wholesaling, because you said you felt maybe a little shady or maybe dishonest. Is that what you’re saying? The way that people usually go about it? Yep. That’s great. Can you elaborate on that? Because I think a lot of people when they get into wholesaling, they, they kind of feel like that, but no one really talks about it. Tell us what you mean by that.

So the reason people feel like that because me as a flipper, I call up an agent, the agent asked me Are you a wholesaler? I don’t want to talk to wholesalers, right? So people get intimidated. That’s number one from being a wholesaler. I mean, I look at it, I went to sleep that night, I felt great. I mean, me as a flipper, I would love to have two three guys asked me what would you pay for their property? And I give them the number and you’re locking into that number. I mean, you know what that means? I do we do acquisitions in house all day long, right? I mean, bring for someone a property for the number they want. It’s beautiful. It’s the best thing ever. So by using your method by reverse wholesaling, having a few people looking for properties is beautiful. I mean, there’s there’s because basically solves all the issues.

Yeah, cuz if you don’t have a buyer for a property, you don’t know who to ask, you kind of feel like you’re almost lying to the seller, right? Like if you’re like, oh, I can buy your house, when you really don’t know, you don’t know who’s gonna buy it. But if you can find out what a couple of your buyers will pay before then when you go and make that offer you feel extremely confident, right? You feel really like, oh, I have someone.

I’m coming from there. I tried wholesaling. When I started the business before going into flipping, I tried. I liked in something. What was it it was listed for 90 I liked it. And at I believe 78 or 75. So it’s too close to the listing price. I had it I had a few people looking at it. Nobody needed it. And then the agent was kind of getting the feeling that I’m wholesaling it and was kind of Yeah, I mean, it still works. It’s great and no harsh feelings. It’s amazing people who can bring properties for flippers. That’s amazing.

Yeah, I think I think the way traditionally people wholesale, especially when they’re getting started as they feel they feel uncomfortable, right? Because they do get deals that maybe aren’t the best. And they try to sell them when nobody really wants them. But if you can know what a buyer will pay, you feel extremely confident and you realize you probably got to be a lot lower than what you probably normally thought you had to be right. You got to be a lot lower. But when you’re new, you don’t really know right? You’re just like, let me just try something.

And the only, I mean, there is nothing there’s no difference between you and the newcomer between me and the other guy between Jerry and all the other people. I mean everybody has the same mental facts faculties go to exercise. So they just have to go for it, exercise it, strengthen it, get your first deal and get it moving. Right.

Exactly. And yeah, and we talked about it a little bit before, like we all put on smiles. We all talk like doing good. But it’s it’s a struggle sometimes, right? Like, we all have to wake up, we all got to make the calls. We all got to make the offers, we all get rejected, right? I get rejected. There’s nothing I’m saying that’s really any different than what you’d say like we’re agents are saying no to our offers. But it’s the people that are consistent, that people are working and making the offers and doing it the right way. The ones that win. And I’m assuming

I mean, I can add anything. You just, you just said it. I mean, I was looking I believe way, way, way back, I believe almost eight to nine months. You were active on the Facebook pages and you put a whole morning thing you don’t feel like getting up. Are you still gonna do your morning of rumination and everything? Yeah, I mean, I saw it, you probably don’t even know that. I’ve seen it right. But it makes me different than other people. So Wow.

No, thanks. I appreciate you saying that. Because look, man, hi. In the world that we live in today. Everybody wants to just put their best foot forward and just show all the wins. They’re having right every talk like everything’s, it’s not always like that. Right? Yeah.
I mean, I always tell my wife and that’s an issue out there. Because when we do when we do video clips and coaching and everything we always bring up like my side right now. I just came up and I explained everybody. Okay, I made 18k Wow. But they don’t know I worked for it like since August, right? So we got to make sure we put out there yes, there is a grinding stage we got to keep on gotta be consistent and it’s coming. The homerun deal is around the corner. You have to keep on the consistent call up know that it’s around the corner and you will get it 100%

Bro, you said it. You said it better than I could have said it. That is true. So for everybody that might be feeling like hey, man, I’ve been doing this for a long time. I’m not seeing results. You got to keep going. And you got to keep working hard like I’m
I mean, yeah. So yeah, I appreciate it. I appreciate you bringing that up. But yeah, we got to put some attention to that as well. Of course. Ah, and everybody can make it. Exactly.

So Hi. Um, is there anything you want to leave our listeners with before we wrap up for today? Anything else you want to say? Yeah,
so I would say all the help and the resources are out there you will get with when you need it as a whole thing you will get to it is a title. Is it a contract? Is it information on how to do it? Is it sub two? Is it creative? Is it anything? You all the information is out there you will find it when you need to just keep on going.

You said it beautifully. Brother. Well thank you for your time.

Thank you very much. It’s good talking to you to catch you later.