In this video, you will learn how I completed my first real estate deal at 20 years old! This specific real estate deal changed my life because no money was put into the deal, yet it produced $22,000 of profit! 45 days before making this deal happen, I was making sandwiches for $10/hr...
Come take a listen to learn how you can do these types of deals called "Wholesale Deals," for yourself!
Here's a transcription of the video if you enjoy reading:
Hey everyone, it's Alex Martinez and today I'm going to talk about my first real estate deal. So let me take you back to when I was 19 years old, so I wasn't in real estate at 19 years old, I didn't know anything about real estate. What I was doing was, I was actually making sandwiches, and I was making sandwiches for 10 bucks an hour while going to school full-time, so I was working about 25 hours a week, going to school full-time. So I'd go to class and then I'd go make sandwiches all day and I'd come home every night soaked in vinegar and oil. I just knew that there was something better for me than just going out there making sandwiches, going to sit in class and just doing that day in, day out to then, what? Go get a job and retire at 65? So I knew there was something better for me. That's when I started reading books like, Rich Dad, Poor Dad and Think and Grow Rich and I found real estate investing.
I went all in in real estate investing actually when I turned 20 years old and within 45 days, I actually did my first real estate deal. A deal called a wholesale deal. So, my life kind of changed right then at that moment because up until then, I didn't think that I could complete a real estate deal at age 20, I mean no one I knew had done that before. So when I went all in, I just had that belief, that mindset that I was going to make this happen no matter what and I did make that happen. So let me tell kind of about what wholesale is, what a wholesale deal is in real estate and how you can do that too. So this first deal I ever did, this real estate deal, it was a residential house. So it was a house that needed fixing, it was a distressed situation and condition meaning, the seller of the property was facing foreclosure and I was able to put in an offer on this property at a particular price and that particular price, that was $328000 dollars, all right? So I put in an offer on this property at $328000 dollars.
Now, to get a property under contract at a particular price like this one, that doesn't cost any funds. It doesn't cost any money to do that until about three days after. A deposit is required after three days. But still, this time I can get this property under contract at $328000 dollars and that's what I did. Now what I did next was actually find a buyer for this property, someone who wanted to actually buy this distressed property, fix it up and resell it. So what happened was I actually did something called a wholesale and it's where you actually assign the contract, that means you sell the equitable interest in the contract to somebody else. Another fix and flipper, someone else who wants to fix it and flip it, all right? So keep this mind, right? 20 years old, making sandwiches at 10 bucks an hour, I get a property under contract for $328000 dollars. I find a buyer of this property who wants to buy it for $350000 dollars, okay? Keep in mind, I haven't put $1 dollar into this property.
Now what I do is I assign the contract to this buyer for $350000 dollars. Now there's a difference between $328000 and $350000, right? And that difference, yep you guessed it, is 22k. That 22k is the profit made from that deal, the wholesale the deal. The finders fee, the wholesale fee. Whatever you want to call it, for getting this property under contract and delivering it to this fix and flipper on a platinum platter, right? We found them a deal that they can now renovate and resell at a higher price. That's why this person would pay a wholesaler, someone like me $22000 dollars because they're still gonna make a flip profit of $30, $40, $50000 dollars on this. But I learned at age 20 within 45 days of going all in in real estate investing how to do this type of deal, wholesale deal, where you can literally assign the contract. For this particular deal, I want to let you know that I did about 8 hours of work on this particular one in 1 week, to get this deal, to find it and to assign it and sell it. It was about 8 hours of work, all right?
What was that profit on the deal? It was $22000 dollars, not a bad profit to generate for a 20 year old and then next point guys was, I was making 10 bucks an hour right? And this was so impactful in my life because from the 8 hours I put in and I made $22000 dollars out of it, I learned that I was making about $2750 per hour from wholesaling in real estate, from now doing deals in real estate. You know what I did the next day? I quit making sandwiches I quit coming home every night with soggy clothes from oil and vinegar and I started investing full-time in real estate and I went onto to wholesale many, many more deals and fix and flip many, many more deals. All the way to my team and I generating over $1.2 million dollars of profit that first year I went in, at 20 years old. So I just wanted to share this story that, that first deal opened eyes and if you haven't done your first deal yet, don't give up. Keep working towards it because once you do that first deal, you understand that this isn't some crazy thing that only the elite can accomplish or only someone who has a degree can accomplish. You don't need a degree to do this.
You don't need to study this for years and years. I did this within 45 days, okay? Within 45 days of jumping into real estate. That's like a month and half, all right? So, I've seen people that want to get into real estate and they take 6 months to a year to do their first deal, all right? Now, I've had people that work with me, they come in and we work together, I see their systems, what they're doing and they've been able to flip a house in 21 days. Wholesale deal in 21 days when they've been trying to do it for a year and half on their own without getting any results. So, I just want to let you know that you can do this, that's why I wanted to share this story. Let you know the first deal was about $22000 dollars of profit and just keep in mind, if you make $5000 dollars on that first deal or $2000 or $10000, don't be discouraged. The average wholesale fee is really $10000 dollars. So if you're making around that number, you're good.
Like I said, don't be discouraged if you make $5000 dollars on that first deal, it's okay. You're still learning, work your way up. You're gonna get better at negotiating, you're gonna be better at finding deals like this and it's just going to be a process. You get to fall in love with that process, understand that process and that end result of getting cash in your account, making these funds and doing a lot of deals. That will come, okay? And one more thing about wholesaling real estate. Like I said, this deal, guess how much money I spent to acquire this deal? I didn't spent $1 dollar. $0 dollars. I mean I didn't really have any money at all, I mean I had student debt when I started doing this so, you can do this with no money at all. I mean, it's pretty unreal that you can do this. Doesn't cost any money to get a property under contract into a wholesale deal, all right? So I hope this maybe encouraged you, maybe inspired you. Just to let you know about this particular first deal.
Now I've done many, many more deals. Some higher than $22000 dollars profit. Some below $22000 dollars a profit but what's gonna pay off is consistency in this game, so if you haven't got that first deal yet, keep trying you will make it happen. That first ones the hardest, once you get that keep going. It's all about going from 0 to 1 then from 1 to 2, and from 2 to 5. So you got this, keep working at it. Happy you guys were able to hear about my first deal and lots more to come. So if you like hearing stories like this, there's gonna be a lot more stories, a lot more how-to videos, a lot more guides and lessons. So if you enjoy this, please subscribe down below and anything else you want to see, leave a comment below, we'll talk about it, we'll chat about it. If you want to see a particular video made please let me know! Have an awesome day!
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