Every wholesale real estate investor remembers their first deal—the moment when theory turns into reality and dreams start taking shape. For Darryl, a former cable technician turned real estate investor, his first deal was more than just a transaction; it was proof that success in real estate was within his reach.
This blog post explores Darryl's journey, from finding his first property to the strategies and lessons that helped him transition into a full-time career. His story offers invaluable insights and motivation for anyone starting in real estate.
Darryl's journey began in 2015 when he found a single-family home listed for sale by the owner on Craigslist. At the time, Craigslist was still a valuable resource for finding real estate deals, especially those listed by owners who did not want to pay agent fees.
Darryl got the property under contract but soon realized he had miscalculated. He aimed to make $5,000, but the numbers were tight. After marketing the deal to potential buyers, he received interest from a buyer with experience in real estate.
However, the seller was unwilling to negotiate further, only reducing the price by $500, leaving Darryl with a modest profit of just $5 instead of the anticipated $5,000.
"My $5,000 turned into $5. But being my first deal was proof of concept for me." - Darryl
The most important takeaway from this experience was that despite not making a lot of money, Darryl saw the potential and proved to himself that real estate investing was a viable path.
Before entering real estate, Darryl worked as a cable technician in New Jersey, earning around $70,000 a year. His career path changed after meeting a technician involved in real estate, sparking his interest in the industry.
"And at the time, when I left, I was making about 70 grand a year and I quit." - Darryl
A major motivator for Darryl was his father's untimely passing because of a heart attack at work. This tragedy motivated him to find a career with more freedom and chances for growth. He wanted to move beyond the limits of a traditional job.
"My dad died at work... I wanted to venture out and learn something more than just having a job." - Darryl
After his first deal, Darryl experimented with different marketing strategies and succeeded with cold calling. Eventually, he hired cold callers to expand his business and invested in mentorship programs to gain essential skills despite his lack of prior business knowledge.
A crucial lesson Darryl learned was the importance of nurturing relationships with potential sellers, even if they aren't ready to sell immediately.
"Don't just push those people to the side and just focus on, 'I found a deal.'... Those people are your potential future business." - Darryl
Wholesaling became the foundation of Darryl’s real estate business. It’s a strategy in which you find an undervalued property, pass it to an investor who will renovate it, and earn a finder’s fee in the process.
"Wholesaling is something I think I will always do, because that's where I started from." - Darryl
Darryl has also ventured into seller finance deals, where he makes payments directly to the seller without needing to qualify for a traditional loan. This approach has helped him build a portfolio and hold properties for the long term.
"I'm venturing to open up to doing more seller finance type of stuff now because I'm building up a portfolio and I want to hold more stuff." - Darryl
To avoid burnout, Darryl suggests setting a daily schedule with breaks and realistic goals. For example, he aims for 20-25 meaningful conversations each day and adds three to five follow-ups to his system.
"As long as I reach a quota... I want to have at least 20 to 25 conversations... and add three to five follow-ups into my system every day." - Darryl
Cold calling remains an essential part of Darryl’s real estate marketing strategy. He stresses the importance of discipline and consistency in making calls to generate leads and close deals.
Darryl observes that in his market, typical assignment fees range from $10,000 to $15,000, with occasional higher profits. In pricier areas like Raleigh, North Carolina, fees can be as high as $20,000 to $40,000 per deal.
While Darryl primarily manages his wholesale business independently, he is looking to form partnerships to grow further. He has developed a strong relationship with a general contractor and a realtor, and they are exploring ways to collaborate on future projects.
Darryl's journey from his first small profit to building a thriving real estate business showcases the resilience and determination needed to succeed in this industry. His experiences emphasize the importance of persistence, a structured approach, and nurturing relationships.
Through wholesaling, seller financing, and careful goal-setting, Darryl has crafted a career that many aspiring investors can learn from. His story serves as a powerful reminder that, with the right mindset and consistent effort, real estate investing can unlock incredible opportunities and financial freedom.