In this episode of the DealMachine Real Estate Investing Podcast, host David Lecko sits down with Tony Roberts, an agent who has also successfully completed 20 wholesale real estate deals. Tony shares his journey, insights, and the pros and cons of being a real estate agent versus a wholesaler.
Tony's first wholesale deal took place in 2020, right after the pandemic began. Despite the challenges, he managed to make $7,500 on that deal. Fortunately, he partnered with someone who had more experience in wholesaling and had marketing strategies in place. This allowed Tony to get a fast track into the business.
"I was really happy to be able to join up with them and kind of get a fast track." - Tony Roberts
Prior to wholesaling, Tony worked as a car salesman when the pandemic hit. However, before that, he had been a real estate agent for six years and had completed numerous deals. This experience helped him understand the concept of wholesaling when he first heard about it.
As a real estate agent, Tony was told to be cautious of wholesalers and investors. However, he realized that wholesaling could be a more lucrative option compared to being an agent. After hearing a radio interview with Mark Witten, a successful wholesaler in Baltimore, Tony was inspired to learn more about the business.
He immersed himself in educational resources, such as BiggerPockets and Facebook groups, to gain a deeper understanding of wholesaling. Tony also reached out to people in his area who were already doing deals and offered to provide value in exchange for their knowledge and experience.
Tony's search for a joint venture partner led him to connect with Melanie, an experienced wholesaler in the Baltimore area. They complemented each other's skills perfectly - Tony had sales experience, while Melanie excelled at marketing and behind-the-scenes work.
Together, they worked on their first few deals, with Melanie finding the leads and Tony closing them. This partnership allowed Tony to gain valuable experience and learn the ropes of wholesaling.
Tony's first deal came from a lead that Melanie had been working on. The seller was a challenging individual to deal with, but Tony's experience in sales and ability to relate to the seller helped him close the deal.
He listened to the seller's problems, offered genuine solutions, and guided him towards selling the property as-is for a fair price. This approach, focusing on helping the seller rather than just pushing for a sale, is what sets successful wholesalers apart.
As a real estate agent, Tony knew how to determine the after-repair value (ARV) of a property by comparing it to similar sold properties. However, estimating repair costs was a new challenge.
Tony learned to ask contractors for their cost per square foot and compare estimates from multiple sources to arrive at a reliable figure. He found that presenting repair costs to sellers in terms of cost per square foot was more effective than providing a lump sum estimate, as it left less room for debate.
After completing a few deals with Melanie, Tony continued to grow his wholesaling business by connecting with other experienced investors in his area. He offered his skills in telemarketing and cold calling in exchange for the opportunity to learn and close more deals.
Today, Tony has completed around 20 deals and enjoys the freedom and flexibility that wholesaling provides. He can spend more time with his family and work on his own schedule, while still earning a substantial income.
As Tony celebrates another birthday on April 20th, he shares some valuable advice for those looking to succeed in real estate or any other field:
"Just don't give up on what you're doing in the real estate or whatever space you're in. Just keep doing it. If you keep putting in the reps, you'll see the results, I promise you." - Tony Roberts
He emphasizes the importance of perseverance and recognizing the value of one's own knowledge and skills. Everyone starts out a little shaky, but by continuously learning and taking action, success will follow.
Tony Roberts' journey from real estate agent to successful wholesaler demonstrates that with the right mindset, partnerships, and a willingness to learn, anyone can achieve their goals in the real estate industry. By following his advice and insights, aspiring wholesalers can navigate the challenges and reap the rewards of this lucrative business.