Dale on the Daily

From Zero to $10,000: My Wholesale Real Estate Blueprint

• Dale Kerns • Season 1 • Episode 2

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We break down the exact process of acquiring, negotiating, and closing a $10,000 wholesale deal with no prior experience. The key is taking action, learning as you go, and leveraging joint venture partnerships to compensate for what you don't know yet.

• Using software like Batch Leads to generate lists of motivated property owners
• Cold calling as an effective, low-cost acquisition strategy for beginners
• Finding JV partners through Facebook groups to bring buyers when you don't have any
• Acquiring a property for $45,000 and selling for $65,000 with a 50/50 profit split
• Hiring transaction coordination services for $500 to handle paperwork and closing details
• Four practical steps to get your first deal: get software, cold call owners, find JV partners, hire TC services
• Real estate agents as valuable resources for finding buyers or becoming JV partners
• Focus on taking action rather than acquiring perfect knowledge before starting


Speaker 1:

Today I'm going to go through the first wholesale deal that I did, how I got the deal and then the steps you can take to get your first deal. I actually made $10,000 on this deal, so it was the first wholesale deal that I did start to finish. That closed and we got paid on. I'm going to run through the acquisition, the disposition and the transaction coordination the three basic makeups of a wholesale deal, and how I did each step for my first one, and then the steps that you can take to get your first wholesale deal as well. So let's start with the acquisition how I got the deal. So at the time and still to this day, I use Batch Leads as a resource to get my leads. So I was using the software Batch Leads and what I was doing was pulling lists of property owners Okay, and I was cold calling those. So I would pull the list based on a criteria of the type of owner and whether it was vacant, absentee, the type of property, the average value of the property and things like that. So I was pulling a niche list of owners and I was cold calling those owners. So it took a while to get to the people that actually wanted to sell. But once you get them on the phone, you have the criteria, they have some pain, they have some motivation, so their chances of wanting to sell is higher. So I was using batch leads, pulling a list of those owners, and you can reach out to me either on Facebook or Instagram or through YouTube and I can give you the exact type of niche list that I'm using to pull and I was cold calling those owners. So this one I found through the cold call and I was texting at the time as well. So we pull the list of owners, the cold call and I was texting at the time as well. So we pull a list of owners and cold call. So this one was in my local area and they wanted to sell. So that's how I found them. Cold calling was the method that I was using to get ahold of them and then, obviously, once I talked to them, I found out what their motivation was, the price they wanted, and closed them on a price to sell the property. So the acquisition was basically that pulled his name, cold called him, talk to him on the phone, negotiate the price. Um, comped and negotiate the price. Okay, I think for this one we got this under contract for like 45, I think, is what the contract price was. Okay To the seller, okay. So that was the acquisition part of it.

Speaker 1:

For the disposition, at the time I didn't have any buyers list. I did know a couple people in the area that I had come into contact with through Facebook groups, and this is actually how I did my dispositions where I didn't know anybody, I didn't have any buyers list or really have someone to go to in order to sell these properties that I went, which I kind of learned as I go, get it under contract, then figure out how to dispo it type of strategy which, when you're first starting out, I feel like that's how most people will do it, which is fine. It just puts a lot more pressure on you to actually sell the property. So, for the dispositions, I worked with a JV partner on this and I actually found a JV partner through a Facebook group. So what I did was I posted on the Facebook group your local real estate Facebook group. If you go to Facebook you can search uh real estate in your city and you'll find something. So that's how I found uh the Facebook group. Once I was in the Facebook group, I basically just blasted out that I have a property under contract Does anyone have any buyers?

Speaker 1:

And you're either going to get buyers that are actual buyers or you'll get other people that are probably wholesalers, like yourself. That may have the buyers already, so you may have to share it. But when you're first starting out it's easier to work with somebody that has a buyer If you can bring them the seller and the contract. They bring the buyer. You JV on it. You split the profits, everybody wins and you can typically move your deals a lot faster that way. So I found you JV on it. You split the profits, everybody wins and you can typically move your deals a lot faster that way.

Speaker 1:

So I found a JV partner through the Facebook group. We signed a JV agreement to split the profit. To split the profit Okay, and the disposition he actually brought a buyer in that was willing to pay $65,000. Okay. So I got the acquisition. I brought the seller. Our contract price for the seller was $45,000. For the dispositions I found a JV partner on a Facebook group. We signed an agreement to split profit 50-50, and he brought the buyer who was willing to $65,000 for us. From the buyer $45,000 to the seller. So that's a $20,000 spread and that's what we split $10,000 each on the disposition side.

Speaker 1:

Okay, and mind you, this is the first time I had ever done this start to finish, so I was kind of learning as I go and just taking the action found the seller, found the buyer make $10,000 for just bringing half of the process to light finding the JV partner. It's the easiest way when you first get getting started to JV with people than trying to find your own buyers. It takes you a while to build your own buyers list, so that's a tip If you're first starting out. This is exactly what I would do For the transaction coordination. So opening title, dealing with the title company, um, getting all that paperwork side of it situated, um, what I did was actually I had a third party do this, so it was actually a partner or individual. It wasn't a company From a Facebook group. Actually, it was one of my mentorship program groups that I found this, so this was from a mentorship that I found this. So this was from a mentorship, but you can also find them from Facebook groups as well.

Speaker 1:

And for this person, handling all the communication with the title, talking to the seller if they need to, talking to the buyer that they need to, making sure all the contracts are signed, making sure the buyer puts in their earnest money, their contract is signed, the contract between me and the JV partner assigned, so all these miscellaneous things that you are going to have to go through. This person handled it and I actually paid them $500. So my net net was actually $500 less than the 10,000, but for them to take care of this paperwork and know that it's getting handled properly and the communication, it is 100% worth the extra money to do. So. If you can do that, I would definitely recommend that, especially if you're first starting out. There are people that will do this for probably around these prices and there are companies that do that, but they are typically way more expensive.

Speaker 1:

So if I was just starting out and I had to do this over again and even doing it now and doing it over again, I would take the same step. So for your steps, I would get a list of owners. The software will cost you maybe a couple hundred dollars a month, but you can find a list of owners. You can get their phone numbers. A lot of them even have the direct mail and texting and the cold call software in the same program. It is worth it in the beginning if you do have the money to do it. If you don't, there are other ways to get these people which we can go through in a later video.

Speaker 1:

But I would get a software to find sellers. To find sellers, let's say, to find lists of owners. Okay, what I? This is number one. Number two is I would cold call those people, and I just did a video prior to this about acquisitions, which can give you a framework of how to talk to these sellers. The only thing that might be a little bit different is, if you're cold calling them, you'll have to change it up in the beginning. Is this the owner of 123 Main Street? Would you be interested in selling your property or are you looking to sell your property? And they'll tell you yes or no and go from there. But I would just cold call this list and it's going to take you a lot to cold call to find somebody that wants to sell. But it's just a numbers game at the end of the day. It just is going to take you more cold calls than, let's say, a pay-per-lead or someone that's filling out a form online that's already saying I want to sell. The difference here is you have to find them, the ones that want to sell, but it's less expensive. Okay, cold call and talk to property owners. Okay, number three is find your JV partner. This is going to be a lot easier than trying to find your own buyer. We'll put find buyer slash JV partner, okay, and you're going to find these in Facebook groups.

Speaker 1:

The other what I also did in the beginning was real estate agents. Okay, real estate agents they could be buyers themselves or they could have buyers that are looking for properties. So this is a great way to network and also get people in the industry find buyers, find what's going on. If you ever have a situation where a seller needs a real estate agent, you can always refer these people to this real estate agent, and if you do that and you can help them make money, they're going to be a friend for life. So this is a great way to get started.

Speaker 1:

And then the Facebook group. So the real estate agents may be buyers themselves. You might find the real buyers in your Facebook groups. Worst case you find a JV partner that has buyers, and I did this for my first few deals and still do this, and it was almost guaranteed that that person had a buyer for the property that I had. So I only did half the work and made half of the money, but also it's a very easy process. So find your buyer and your JV partner and then number four would be the TC services and then you get paid.

Speaker 1:

Okay, transaction coordination I would definitely find somebody to do this. Your Facebook groups local meetups there's real estate meetups in your area. You can Google it and search it. Find them through Facebook. A lot of those meetups and groups have Facebook groups where they communicate, so I would search for that. Go to those meetings, network with people, find out who's doing what and let them know what you're doing so that when something comes up, you can have someone to reach out for and get this done.

Speaker 1:

So number one, just to recap, you've got your acquisitions dispositions, transaction coordination. So if I wanted to go and get my first deal again, I would go and get the software. Find the list of owners what I'm using is batch leads. Number two cold call those property owners. Get on your phone, just start dialing numbers, ask them if they are interested in selling. It's going to take you a lot of people to call and talk to to find that one person. But if you do it, you'll get a property under contract Guaranteed. You just got to call more people. When you cold call. Number three find the buyer. Find your JV partner Facebook groups, real estate agents, local meetups You'll find somebody that wants to buy your property. You just got to get it for the right price, which is part of the acquisition. But you can find your buyer, find a JV partner and go that route. And then, number four farm out the TC service.

Speaker 1:

Don't try to do this yourself. There's too much paperwork. If you're just starting out, you don't know what to look for. You don't know how to keep yourself safe. So for the first couple, watch someone do it. If you want to do this, eventually you can. However, for the money that you can find someone to do it, it's worth it. Just to farm it out and let them handle it.

Speaker 1:

So this is how I got my first deal from zero to $10,000 through these step processes. Here's the way to do it. We can talk about in a later video how to do this for free. If you don't want to spend the money on the software but eventually you're going to need it I would just get it a couple hundred bucks. You can do everything inside of the software and it's super easy. They actually can. Most batch leads I know has a driving for dollars feature where you can drive around on the map and save property. So there is a free way to do it inside the batch leads. But there is also free ways to do that without the software, which will go into later videos. So here it is zero to ten thousand dollars. Here's your steps. Here's what I did, what worked for me and what I would recommend for anyone starting out.