Unlocking Real Estate Freedom: The Power of Wholesale Deals

The journey towards financial independence is a path rife with opportunities and challenges alike. For those who are drawn to real estate, the allure is undeniably strong—this is a domain where sharp strategies, a keen eye for potential, and the right networking moves can transform lives. A standout story in this landscape is that of Matt Kamp, Head of Partnerships at DealMachine, who recently completed a wholesale real estate deal that netted a profit of $47,000. It's a tale that not only inspires but educates.

The Art of Wholesaling

Wholesaling real estate might sound complex, but at its core, it is about the art of identifying undervalued property, securing it under contract, and then transferring this contract to an interested investor for a profit. Matt's story exemplifies the power of this investment strategy. It all began with a three-acre lot located in Chesterfield, Missouri, which, for Matt, was right in his backyard. Recognizing its potential, he took the astute step of partnering with someone to sell the property to an investor.

The numbers are telling—while the total earning on the wholesale deal was $47,000, through partnerships, Matt walked away with an impressive $16,000. In the context of providing examples of what a successful deal can look like, Matt's accomplishment is remarkable. He didn't grant himself a one-off win; this deal reflects a monthly trend of earning more, a practice he shares with others through the DealMachine masterclass.

Leveraging Community and Tools

DealMachine has been a game-changer in real estate, as it enables investors to close deals nationwide. Much of the platform's success stems from its roots in sharing seasoned wisdom. Take Ryan Haywood, the co-host of the DealMachine podcast, who remarkably completed 425 deals in St. Joseph, Missouri, post his decision in 2019 to pursue real estate full time.

In concrete terms, how was a deal like Matt's possible? Throughout the account, there are vital lessons to be gleaned. The most fundamental perhaps is the importance of collaboration. Alongside the sheer intuitive sense to zero in on the Chesterfield property, which demanded a significant rehab if not a complete build on the existing foundation, Matt's partnership with Vince Hall from Call Porter proved invaluable.

The symbiotic partnership afforded accountability, diverse perspectives, and support in establishing an LLC, which they aptly named 'MV Properties' or 'MVP' for short.

"I'd much rather have a third of that than 100% of nothing." - Matt from DealMachine

How did they uncover this particular deal? Vince utilized the power of social media. By broadcasting messages across platforms and enlisting the help of an old realtor friend, they were able to identify a property that had been challenging to market. This strategy underscores that sometimes the tools needed for success are readily available; one just needs to leverage them effectively.

Strategy and Networking

Matt's strategy didn't involve costly marketing or extensive campaigning; in fact, the return on the deal was the result of simple, strategic networking. DealMachine leverages similar tactics, rooting the platform deeply in the value of connection and community.

The Chesterfield deal's complexity arose from comparing it to nearby properties. With surrounding homes valued over a million dollars, it became clear that this property, despite being on a larger lot, was unique. Compiling comps was no typical task; however, with a creative approach and the help of DealMachine's comprehensive data platform, an accurate picture was painted.

Another linchpin in their success was networking with David Dodge, another local seasoned investor with a vast network of cash buyers. Acknowledging the limitations of their buyer network, Matt and Vince saw value in collaborating with David. As a result, instead of a typical small beginner's fee, they were able to secure a $40,000 profit, thanks to David's connections and mentorship.

Conclusion: Empowerment through Action

The nature of wholesale real estate is that deals can sometimes move quickly. Matt's experience from beginning to end over a span of a few months offers hope to those looking to pivot in their professional lives. For anyone eager to leave their 9-to-5 behind or simply searching for supplementary income, stories like Matt's illustrate the potential within the real estate realm when approached with the right mindset and tools.

For those poised to start their journey in real estate, the procedure appears less daunting. The notion of a double close, where there are two linked contracts—'A to B' and 'B to C'—is simplified when breaking down Matt's process. All facilitated by a reliable title company and with legal structures, such as a JV agreement, the closing process can be navigated with confidence.

The key takeaway from Matt's episode isn't the impressive numbers but rather the strategy and mental fortitude displayed in seizing a real estate opportunity. A commitment to learning, an openness to partnerships, and a proactive approach to networking are the forces that can drive even a novice towards remarkable profits.

In closing, the story shared is not solely about a profitable real estate venture but a testament to the fact that in the architecture of wealth, the keystone is often a blend of learning, action, and community. Whether you are new or seasoned in the field of real estate, this approach could pave your way to the freedom, options, and choices that everyone desires.