In the world of real estate investing, persistence, strategy, and a bit of technological aid can lead to notable success. This story is a practical illustration of how one couple, through sheer perseverance and strategic use of the DealMachine app, managed to make consistent profits from wholesale real estate. Here's their tale and key insights anyone in the real estate field can derive from their experience.
Beginnings of a Real Estate Journey
The couple began their real estate investment journey in 2017, focusing initially on buying small multifamily units in Providence, Rhode Island. However, like many new investors, they quickly faced a significant hurdle: running out of capital.
"When we started, we bought three to four-unit multifamily properties, but soon enough, we ran out of cash,".
This challenge propelled them into wholesaling—a strategy where investors find properties, get them under contract, and then sell the contract to another buyer. It was this pivot that transformed their real estate endeavor.
Discovering DealMachine
Their transition into wholesaling was significantly boosted by adopting the DealMachine app for driving for dollars. They referred to it as "the best app in the world, times a million," highlighting how it enhanced their efficiency at finding deals that would have otherwise evaded them.
"The DealMachine app allowed us to send mail to property owners efficiently. These deals always resulted in better profits and more lucrative opportunities,"
Consistent Deal Flow and Higher Profits
The couple found that not only did DealMachine help them find more deals, but it also improved their profit margins consistently.
"DealMachine deals offer us higher average profits—around $20,000 per deal—compared to the $13,000 to $14,000 we typically see with other deals. We’ve averaged about two DealMachine deals per month."
Their strategy involved setting and consistently exceeding goals for property inputs. They aimed for 500 new properties per week, but often achieved around 700. This dedication to high-volume lead generation was a cornerstone of their success.
The Dual Approach: Wholesaling and Property Acquisitions
As their wholesaling business grew, they strategically funneled the generated cash flow into acquiring larger multifamily properties. This dual approach helped them to diversify their investment portfolio and balance their income streams.
"We’re not focused on flips unless they need minor repairs. Instead, we’re aggressively pursuing our first ten-plus unit multi-family property," they remarked.
Using DealMachine streamlined their operations, replacing the inefficient paper-based system they initially used to track potential deals.
Meeting in Kuwait and the Real Estate Epiphany
Their journey into real estate wasn't just about investments—it was also a tale of personal connection. They met in Kuwait while he was coaching basketball and she was teaching elementary school. This cross-continental move and their subsequent life decisions led them to real estate.
"He had to return to the U.S. for ACL surgery from a basketball injury, and I decided to come with him," she said. "We used the money we saved in Kuwait to start investing in real estate once we were back in the States."
This transition period involved a lot of learning and resource utilization, from podcasts to books from BiggerPockets. They emphasized the importance of constant learning and staying motivated, even when results weren’t immediate.
The First Big Breakthrough and Beyond
After months of persistence and no tangible results, they finally secured their first deal from DealMachine in July or August, which turned into a series of multiple deals.
"The first deal we got from DealMachine turned into three deals, resulting in a profit of about $43,000,"
Expanding Horizons
Their success story also touches on the potential of expanding their business model to other countries, particularly the UK. While not familiar with the specifics of wholesaling in the UK, the couple expressed curiosity and openness to exploring this avenue.
"One day, we might look into replicating our business in the UK, especially if there's less competition,"
Advice for Aspiring Investors
Their journey underscores several key pieces of advice for aspiring real estate investors:
- Volume is Key: Always aim to work with large lists and leads. The game is in the numbers.
- Persistence Pays Off: Initial stages might be slow, but consistent efforts yield results over time.
- Leverage Technology: Tools like DealMachine can significantly enhance efficiency and profitability.
- Educate Yourself: Continuous learning from resources such as BiggerPockets can provide invaluable insights.
- Diversify: Use wholesale profits to acquire long-term investment properties for a balanced portfolio.
They also shared a fun anecdote highlighting the occasional 'happy accidents' of using technology. Once, an error in the app led them to a property 60 miles away, inadvertently leading to a profitable deal.
"We ended up making about $13,000 from a deal we hadn’t even planned on targeting," they explained, illustrating the serendipitous potential of diligent effort combined with technological tools.
Future Plans and Community Engagement
The couple remains actively engaged in the real estate community, sharing their experiences and successes to motivate others. They participated in DealMachine’s Q&A webinars, where they shared insights and answered questions, providing a source of inspiration for fellow users.
"We love participating in these webinars and helping to motivate others. It’s great to share what we’ve learned and help others in their journey," they said.
Their journey from running out of capital to making significant profits through strategic wholesaling demonstrates the potential of combining persistence, technology, and a solid strategy in real estate investing.
Conclusion: Turning Challenges into Opportunities
Beth and CJ Moss's journey is an inspiring example of how real estate challenges can be transformed into success with perseverance, strategic pivoting, and the right tools. Their experience highlights the power of combining a relentless work ethic with the efficiency of modern technology, like the DealMachine app, to unlock greater opportunities and profits.
By staying focused on their goals, continuously learning, and diversifying their approach, they have built a thriving real estate business. For aspiring investors, their story is a reminder that with patience, resourcefulness, and determination, even the most daunting obstacles can become stepping stones to long-term success.
