Meet Peter Soros - One of our star students who is a Pro Wholesaler & Real Estate Investor located in San Diego, California!
Peter enrolled in the Pro Wholesaler VIP Program to close more deals without having to spend money on marketing (just like this one)!
Come hear how Peter made a total profit of $70K with his business partner by closing their first wholetail deal from the MLS!
Hope you enjoy Peter's deal review and how the Pro Wholesaler VIP Program helped him build up the confidence to do it!
Want to learn more about the Pro Wholesaler VIP Program? Check out our free training here which covers the Pro Wholesaler VIP Program in detail!
Here's Peter's $35k check (his half of the $70k) that he shared with our Pro Wholesaler VIP Community!
Alex Martinez (00:00):
Hey, everyone. It's Alex Martinez with Real Estate Skills and we teach people how to wholesale and flip houses across the nation in our Pro Wholesaler VIP Program. And we're here with one of our star students, Peter, who made this deal happen in San Diego, California. So Peter's here to tell us a little more about this deal and his experience with the program.
Peter Soros (00:26):
So yeah, it was on the MLS. I didn't even know it was for sale. I went to the next door open house. They were selling both properties.
They had both properties left and right for sale. So it was from there that I found out about this property. I didn't even know. So it was just kind of a coincidence, happenstance like there it is.
Peter Soros (00:46):
I came in, checked it out and I actually liked it better than the other property. It was a little bit easier to work with. This property actually has two units on it, which adds this other value to it. It's a two-bedroom, one bath in the front, one-bedroom bath in the back and there's space in the backyard for another unit so an ADU.
It's zoned for R3 so you can have three single-family homes on here. So that was an extra value add. It just kind of fell on my lap in a way.
Alex Martinez (01:14):
Yeah, and you made it happened. So this property was listed at $530,000, but one thing we know is if a property is listed at a price, it does not mean we need to offer that price. It does not mean it's going to sell at that price.
But as investors, we offer where it works for us. Either if we're going to fix and flip it or wholetailing it in this situation, we need to make sure there's a profit at the end. So we offer at that number and that's what you did here. You didn't offer $530,000. You actually offered?
Peter Soros (01:42):
$45k below the list price is what I offered after running the ARV and all that, the ARV would come out at $680 renovated both. So that was the number we were working with. So $480 worked. I didn't have to come down too low.
They felt like it was a good, strong offer. So they were like, "Yeah." They were happy with it and got accepted. And then that's when it got even more interesting and lots of the surprises showed up. But it's been a great learning experience and we're closing on Tuesday so I couldn't be happier.
Alex Martinez (02:12):
Awesome, man. Congratulations. And you and your partner probably net like $60,000 on this deal at the end of the day?
Peter Soros (02:18):
There have been many numbers going back and forth, but it's in that range and it's still kind of blowing my mind.
Alex Martinez (02:26):
You probably could have made $10k, $15k, $20k, maybe around there, but you decided to wholetail it, which is in-between fixing and flipping, making it a full retail flip. The global wholetail is like in between a wholesale and a fix and flip.
So we want quick profits like a wholesale, but we want to hopefully sell this to a retail buyer on the market. So you bought this at 485, $45,000 goal of this price is like July 17th?
Peter Soros (03:02):
Yeah. July, June, and then we close a few weeks later. And then after just reassessing all the numbers, we put it back on the market within a week. So back in July, we were back on the market.
Alex Martinez (03:13):
So within a week of buying at $45k below the list price, you put it back on the market at $579k. That's pretty cool to do a little. I mean, you did a little bit of work. You had an assistant help you rake some leaves. Your son was out here and touching up, carbon monoxide detectors, things like that.
Peter Soros (03:28):
Yep. We had the gas inspector come out, the city inspector come to check the gas. He says, "You got to have all these other things fixed." So we had to bring the plumber back out. He came and started checking.
He replaced the one thing that they said to replace. Check to see if it was leaking, it was still leaking. So they basically said, "Look, there's probably leaks throughout the whole gas lines. There are probably pinholes through the whole thing. It's from 1956. You just have to replace the whole thing."
Peter Soros (03:57):
So it's not what we wanted to hear. The good news was they said we don't have to do as much line as they did. Whoever built it had the gas line running all through the house and there were no appliances over there.
So it was just like all this extra gas line for no reason. So they would cut it short, connect it to the appliances. It took them two days underneath this house in like 90-degree weather. So it really sucked for them.
Glad it wasn't me that had to do that part. And they got it fixed, had the inspector come out and it was a different inspector. He was like, "Looked at it. Yeah, it's good. Go. No problem."
Peter Soros (04:33):
So it was a little bit of a frustrating story having to deal with city inspectors. "Are you going to go down there and check it?" Like, "No, we're not going to go check it." Like, "How do you know it's good?" Like, "Just give me pictures and videos." All right.
So got that done. I had to pull a permit, pay for the permit, had to start paying for utilities. And then we found a buyer who was a conventional buyer, a buy and hold buyer so.
Alex Martinez (04:57):
You put it back on the market. Right?
Peter Soros (05:00):
We put it back on the market, right. And we had multiple offers too, we had cash offers. We had a conventional offer that came in at $600k like $20,000 over, but they backed out after a couple of days so that didn't stick.
But then we got this other buyer who wanted to buy and hold for these units long-term and we accepted the offer. And then they needed an appraisal done just to get their loan and their loan is coming from like a totally different state.
So I had to call them and say, "What do you guys need? Because I want to make sure this appraisal goes through good." They said, "You just make sure there's smoke detectors and that the water heaters are strapped."
Peter Soros (05:41):
So I don't remember if they were or not. So I checked both units. One unit had smoke detectors, no carbon monoxide. And it had no straps on the water heater. Checked the other unit, it had no smoke detectors, no carbon, but it did have straps on it. So I just took care of it myself.
I drilled in the holes, put the straps on myself, made it look good. Got the carbon monoxide, the detectors, the smoke alarms, just put them in and appraiser came in. I was in here. I kind of helped just brought some of our comps that we found. She was actually very glad we did.
Peter Soros (06:24):
I know sometimes appraisers like, "Well, what are you trying to do? Leave everything alone." But she was actually very nice, very helpful, appreciated that I brought that. I helped her take the door off the water heater so she didn't have to worry about it. So whatever you have to do to make things happen and-
Alex Martinez (06:39):
Whatever it takes.
Peter Soros (06:40):
Whatever it takes, whatever it takes. I was scrubbing floors before the appraiser because they had ripped the carpet out so there's a bunch of glue that got dirty and stinky there. There might've been some animals that got in there at some point. And I was in there with bleach scrubbing things down.
Whatever I had to do to make it happen. So that was one part of it. Then there was because we bought it with my partner and we didn't just wholesale it, we had to get a hard money loan. So that was a whole new thing for me too.
This is basically my first deal. I just went through a lot of different steps, a lot of different process. So I learned a whole lot just on this one deal.
Alex Martinez (07:20):
Great job, man.
Peter Soros (07:21):
Alex Martinez (07:22):
As you can see, yeah, you got to do whatever it takes to get the deal done. It's not just, "Hey, buy it, put it back on the market." You got it ready for a conventional buyer so someone can come in here a week or two later, you're already getting offers back in the market.
You obviously looked at this deal and said, "Hey, how can we maximize profit on this deal?" And so super proud of you because you did that.
Now you're closing on Tuesday in a couple of days, but it's important that the order of operations because being able to strategically acquire these deals is pretty important.
Alex Martinez (07:55):
But when wholesaling, you don't have to fix and renovate and do these things. That's one of the benefits of wholesaling, but you may not get as big of a profit.
So with this, you're getting a larger profit than wholesaling, but you have to do a little more work, but it's definitely worth it.
Peter Soros (08:11):
It's worth it in the end. Definitely worth it in the end. Some of the surprise expenses kind of like made you gasp a little bit and your stomach sinks for a second.
But then you realize, "Okay, it's not as bad as I thought. And Hey, that's just what it's got to be." So as long as we're still coming out on top we're good, you know?
Alex Martinez (08:29):
Yeah. And it's about doing a lot of the little things right.
Peter Soros (08:32):
Yeah. It's a lot of like just making those phone calls, making those connections being on top of it so people know that you're, for real, you're not just somebody off the street playing games because a lot of realtors deal with that.
Because I'm also a licensed realtor. I know what kind of they go through and what they have to deal with. And you kind of have to just set them at ease. And once they feel that like I made a friend that that agent who sold this to us, she's been sending me leads constantly.
She's like, she loved me so much. She's out of areas like, "Here's leads, here's leads. Here. Whatever we can do to help." So it's the networking aspect of it and the mindset of it all. Just like just get it done. Don't be afraid and whatever it takes.
Alex Martinez (09:13):
Peter Soros (09:14):
Alex Martinez (09:14):
Absolutely. And that's what we talk about in the Pro Wholesaler Program. I mean, building those relationships, knowing, liking, trust with real estate agents. Now, if you can call that real estate agent and they're excited for your calls, they know, "Hey, now I can work with this person.
That means I'm going to make more money or send offers with them or make more commissions." That's what we want agents to really feel when we give them a call. And you've been able to do that on this deal. And it's on this particular deal, did the agent also represent you as your buyer's agent?
Peter Soros (09:41):
She did represent me, yes. And then it just reminded me of then when I brought my partner in on this, it's just like when you're assigning it the kind of like, "Whoa, whoa, whoa. What is this going on?"
So I had to explain to her, "Oh, this is just one of my partners. I'm just bringing him in to finish the deal. Nothing's really changing. We're just going to go do this together."
And then they're like, "Well, you said cash. What's this loan thing?" Well, it's a hard money loan. I had to educate her because she's just not aware of it. It's like this is what all investors do. This is cash. It operates differently, but it's going to be a cash offer.
Peter Soros (10:17):
And I just have to go in there just confidently and talk to her about it because if I stumbled too much and went ... it would have been red flags everywhere.
But I spoke as just coming from a place of confidence and knowledge like, "Don't worry about it. We're taking care of it. We're closing. Don't worry about it." You're still getting your money. I didn't say that part, but that's all that matters in the end.
Their clients get what they want, agent gets what she wants and we get what we want so.
Alex Martinez (10:46):
Win, win, win. Everyone's winning in this situation. And so, yeah, you talked about confidence because one thing I like to say when you're in the Pro Wholesaler Program, you go through the training, you know 99% more about investing than agents do.
So once you understand that you're actually the educator talking to agents, you're walking them through the process. You're making them feel comfortable and calm working with you.
You're making them know that this is going to be a smooth, clean escrow, and you're not going to be jerking their chain. And you're going to give them a no-nonsense, genuine offer you can stick to.
Alex Martinez (11:15):
Whereas a lot of the amateurs out there doing the exact opposite and they're not professionals. And that's why we like to say, "Hey it's about being a pro rather than an amateur." And you did that, man. That's a great job.
Peter Soros (11:26):
Thanks. Thanks so much to you, your program and the people you've connected me with. It helped build me up and have that confidence to do it. And I couldn't have done it without it obviously.
If I can say anything to anyone who's doing it, you just have to figure it out and just do it because you have your ways out. It's not as scary as you think once you actually go through it so.
Alex Martinez (11:50):
Peter Soros (11:50):
Alex Martinez (11:51):
Peter Soros (11:52):
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