How I Closed My First Real Estate Deal At 20 ($22k Profit)!

When I first started in real estate, I didn’t have a lot of capital or experience.

But I did have determination and a willingness to learn. This is the story of how I closed my first real estate deal and walked away with a $22,000 profit.

It wasn’t glamorous, and it certainly wasn’t easy, but the process taught me lessons that shaped the way I approach deals to this day.

How I Closed My First Real Estate Deal: Step-By-Step Process

• Step 1: Finding the Deal Using the MLS
• Step 2: Viewing the Property & Making an Offer
• Step 3: Establishing Property Value & Challenges
• Step 4: Analyzing the Deal & Profit Potential
• Step 5: Why the 70% Rule Is Limiting
• Step 6: Submitting the Offer & Offer Terms
• Step 7: Negotiations & Getting Under Contract
• Step 8: Finding the Cash Buyer
• Step 9: Negotiating the Wholesale Fee with the Buyer
• Step 10: Bank Approval & Closing Timeline
• Step 11: Creative Closing Using Tenants in Common
• Step 12: Closing the Deal & $22K Profit

Step 1: Finding the Deal Using the MLS

The deal came straight from the MLS.

Good opportunities still show up there if you know what to look for.

I set up automated alerts for my target area and criteria.

The property popped up at $385,000, and the listing photos and description suggested distress.

I called the agent the same day and confirmed both the property and seller were in a distressed situation.

She was receptive and encouraged me to see it quickly.

Read Also: MLS Real Estate: Multiple Listing Service (ULTIMATE) Guide

Step 2: Viewing the Property & Making an Offer

I toured the home the next day to verify condition and check the neighborhood.

It was dated, needed a full cosmetic renovation, but had solid bones.

That same day, I sent offer terms at $328,000—about $57,000 below list.

Before locking anything, I knew I needed comps and a renovation budget.

Step 3: Establishing Property Value & Challenges

Comps were tricky because nearby renovated homes with pools sold higher than my subject would.

I found sales at $580,000 and $565,000 in nicer pockets, and a more modest comp at $422,000.

This gave me a wide range, so I assumed an ARV of $525,000 as a working number.

Because of that uncertainty, I planned to wholesale rather than fix and flip.

Step 4: Analyzing the Deal & Profit Potential

Given the condition, I estimated $15–$20 per square foot for cosmetics and set a $50,000 renovation budget.

I plugged everything into my deal calculator.

With an ARV at $525,000, $50,000 in repairs, and a $328,000 purchase, the deal looked strong.

Even if the ARV came in closer to $475,000, there was still room for a $20K+ wholesale fee.

Step 5: Why the 70% Rule Is Limiting

Many new investors use the 70% rule, but it can cause you to underbid and miss deals.

At an ARV of $475,000, 70% is $332,500, minus $50,000 repairs and a $22,000 fee = max offer $260,500.

My calculator showed I could still offer $328,000 and net the same $22,000 wholesale fee.

That’s a $60,000 difference versus the 70% rule.

Step 6: Submitting the Offer & Offer Terms

Timeline: listed Wednesday (5/30), called Thursday (5/31), viewed Friday (6/1), submitted offer that day.

Core terms: $328,000 purchase price, $15,000 earnest money, 7-day special contingency, 14-day close or sooner.

I received the written contract Monday (6/4), verified terms, signed, and returned it.

Next up: seller signature.

Step 7: Negotiations & Getting Under Contract

The seller wanted the deposit due upon acceptance, but this was a short sale, so bank approval could take weeks.

I countered with a 10% deposit ($32,800) due within 3 days of short-sale approval, not seller acceptance.

That concession worked.

On Friday (6/8), the seller signed and we were officially under contract—about nine days after listing.

Read Also: Wholesale Real Estate Contract Template & PDF [FREE DOWNLOAD]

Step 8: Finding the Cash Buyer

While waiting on the bank, I lined up my buyer.

I leaned on in-person networking from local investor meetings and sent the deal to my top three buyers.

All were interested, but one was ready to move immediately.

Relationships made this fast and easy.

Step 9: Negotiating the Wholesale Fee with the Buyer

The buyer felt the ARV was closer to $475,000 than $525,000.

I adjusted my calculator and we agreed on a $22,000 assignment fee.

At a $475,000 ARV and $50,000 in renovations, the buyer’s projected ROI was about 11% with roughly $44,700 profit.

I want my buyers to win—singles and doubles keep relationships strong.

Step 10: Bank Approval & Closing Timeline

On Monday (7/2), the bank approved the $328,000 price.

That started the clock: 3 days to deposit $32,800, 7 days for inspections, and close within 14 days or sooner from approval.

The buyer had already completed due diligence during the wait, so we were ready.

All that remained was transferring ownership as required.

Step 11: Creative Closing Using Tenants in Common

Because it was a short sale, the bank required we remain in the title chain for 30 days after closing.

We closed as tenants in common: 1% in our name and 99% in the buyer’s.

On day 31, we came off title and the buyer held full ownership.

Creativity solved a problem that might have stopped the deal.

Step 12: Closing the Deal & $22K Profit

We closed early on Friday (7/13).

I received my $22,000 wholesale check—my first real estate deal and a milestone moment.

It wasn’t just the money.

It proved what was possible and set the course for everything I’ve done since in real estate.

Key Lessons Learned from This First Deal

Don’t let age hold you back. I was 20 when I earned $22,000 on this deal.

Excuses would have kept me from starting.

You don’t have to be perfect—just close. My initial ARV was off by $50,000, and the deal still worked.

Waiting for perfect would have killed it.

Get mentors. Mentorship shortens the learning curve and prevents costly mistakes.

At Real Estate Skills, we now mentor others to wholesale, fix and flip, and build rentals using proven systems.

*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.