Success in wholesale real estate investing demands adaptability and determination. Vaughn Bethell’s story shows how he went from his first $30,000 wholesale deal to creating a homeownership model. His journey highlights the power of hard work and smart planning. Let’s explore how Vaughn turned challenges into opportunities.
Pivoting Amidst Regulation Changes
Vaughn started his real estate investment journey in 2018 when he was strapped for cash. South Carolina is one of the few states that has rules about wholesaling or assigning properties without owning them. This created an early challenge. Despite these challenges, Vaughn's ability to adjust when these rules affect his business shows his smart thinking and flexibility.
He focused his initial strategy on finding distressed properties and wholesaling them. When regulations made it harder to keep this model, Vaughn shifted his business. He focused on buying properties, fixing them up, and quickly reselling them.
"I knew I didn't have a lot of money and had to make some money, so got turned on to wholesaling and then getting into wholesaling, how to find motivated sellers." - Vaughn Bethell
The First Big Win: A $30,000 Deal
Vaughn's first deal in August 2018 was a defining moment. Using the "Driving for Dollars" strategy, he identified distressed properties while driving around Spartanburg, South Carolina. This method led him to three overgrown properties that had been vacant for over a decade. He used the DealMachine app to take a picture and send a postcard to the owner, who responded a few weeks later.
On inspection, Vaughn found four structures on the three lots, including three single-family homes and a flower shop. After initial skepticism, negotiation lowered the price from $40,000 to $30,000. Vaughn managed to sell the properties within a week for $60,000, pocketing a profit of $30,000.
"Within a week, we found a buyer for $60,000 for the entire property. Right. All three lots, all four structures. And in less than 30 days, we closed our first wholesale deal and literally walked away with a check for 30 grand." - Vaughn Bethell
Strategy and Negotiation Tactics
Vaughn’s negotiation tactics played a crucial role in his success. He focused on the pain points of the sellers, such as the property's long vacancy and the owner's lack of resources to renovate.
When asked about his approach, Vaughn emphasized the importance of honesty and direct communication:
"It wasn’t no sales tactics or anything like that. Just here’s where I am. Here’s where I think we need to be." - Vaughn Bethell
He often brought a partner to assert knowledge and authority, further convincing sellers to agree to the deal.
Transitioning to Homeownership
By 2020, Vaughn shifted his business model to purchasing, renovating, and selling properties via owner financing. This pivot allowed him to comply with new regulations while building a steady income stream and helping others achieve homeownership.
"So our average down payment that we get is double what our average assignment fee was. And then I'm cash flowing at least $500 or more a month throughout our note portfolio." - Vaughn Bethell
This change helped Vaughn follow new wholesaling rules. It also allowed him to build a steady, passive income.
Building a Strong Team
Vaughn knew that growth required building a solid team. His first hire was an executive assistant, followed by acquisitions and dispositions managers. This strategic delegation allowed him to focus on high-value tasks and grow his business efficiently.
"I always recommend people that their first hire should be somebody that can come in and take all the tedious work off of you to free you up to do what you do best." - Vaughn Bethell
In 2020, Vaughn’s company revenue hit $1.3 million, showcasing the effectiveness of his business strategies and team.
Adapting to New Real Estate Market Challenges
The real estate market is dynamic, and rules change frequently. Vaughn’s ability to pivot and adapt to these changes has been vital to his continued success. Even with new regulations in South Carolina making wholesaling illegal, Vaughn found creative ways to continue his business operations.
"So I know I do have some friends that are still doing wholesaling. It's not called wholesaling, but there's always creative ways to get around that." - Vaughn Bethell
By working with other investors and using creative financing methods, Vaughn keeps growing in the changing real estate market.
Advice for Aspiring Real Estate Investors
For those just starting, Vaughn’s journey offers numerous lessons. His focus on perseverance, strategic thinking, and smart delegation is important for anyone entering the real estate market. Vaughn’s story shows the strength of resilience and the chances that real estate investing can provide.
"Just keep at it. It’s gonna come. And once that snowball gets going right, it’s that snowball effect. This is going to get bigger and bigger and bigger." - Vaughn Bethell
Conclusion
Vaughn Bethell went from a $30,000 deal to a successful real estate business. His journey shows that obstacles can be opportunities in disguise. His ability to adapt and invest in his team shows the value of strategy and hard work. He also focuses on long-term goals.
For anyone wanting to succeed in real estate, Vaughn’s journey offers a guide. Stay flexible, embrace creative solutions, and always value the power of starting small. With the right mindset and approach, even the most modest beginnings can lead to extraordinary success.
