Get Your First $20K Real Estate Wholesaling Deal In 3 Days With Raphael Vargas | REAL Knowledge

– Hey, what’s up guys,
Raphael Vargas here. Hey, check it out, on the
last video that I did, I actually posted and said, “Hey, what is the most requested topic “that you want to learn about?” And so the most requested topics were what is wholesaling and
how do I get my first deal, whether that’s a $10,000,
$20,000, $30,000 deal, how do I get it? So, come follow me in my office. I’m gonna break down this for you. Keep watching. (digital sounds) So, what is wholesaling? Wholesaling is a very simple concept where we take and we
find motivated sellers, properties that are in distress, right, and we find motivated sellers to see if they are interested in
selling their property. So the goal is to lock up this
house for a certain price, and then guess what? Sell it for a higher price to an investor. Let me give you an example, right. So we have a house right here and we have a motivated seller. The seller wants to sell for $100K. Now we know that the property
needs a lot of renovation. Let’s say it needs about
$40K in renovations, okay? But once it’s renovated, the after-repair value, or the ARV, the property is now worth $200,000. So guess what? What does that mean? That’s $60K in profit, and guess what? This is real guys. There’s a lot of fix-and-flippers
that do this all day with properties that are distressed, renovate it and then
resell it for a profit. So again, now there’s $60K in profit. That’s a lot of spread. That’s about a, whatever that is, like about a 50% return on $100K plus $40K in renovations, right? So there’s enough spread in
there for you as the middle man. So your goal is to find this
motivated seller for $100K and instead of renovating
the property, okay, what you’re gonna do is
you’re gonna find a rehabber, or an investor. Okay, a rehab investor and
you’re gonna tell this guy, “Hey, check this out. “I have this property. “I locked it up under a contract, “a really simple agreement.” So I find a motivated seller that’s interested in
selling their property, I lock it up under an
agreement for $100,000 and then guess what? We sell it for, let’s say
$120,000 with an assignment. So we assign our rights to this property to the rehab investor, and guess what? We then send this to a title company, a local title company, okay? And they’re gonna be the one
that handles the closing. Now, when the closing happens, guess what? The seller walks away with $100,000, the rehab investor buys
the property for $120,000, and guess what? You make the difference of $20K. Now, I’ve done deals as small as $1,500, I’ve been doing deals as big as $300,000 in just an assignment fee, right? This is whole-selling. Now the question I always get is, “How do I get my first deal?” Now to get your first
deal, it’s very simple. Let me explain to you, okay? Now, what you wanna do is, the goal is you need to find
this motivated seller, okay? So how do you find this motivated seller? You’re gonna buy a list, okay? So you’re gonna buy a list and some of the best
lists of motivation are, let’s say probate and absentee. I’m sure you guys, if you’ve studied whole-selling,
you know about this. So what is probate? Probate is somebody that
has inherited a property, most likely their family member died and they had to inherit a property. And because they inherited the property, that means they inherited the mortgage, the leans, the taxes, and maybe they live in Wisconsin and their house is in Virginia. Whatever it is, right? So they inherited this property and now they’re motivated to sell. They need to sell it at a quick price, and so they’re willing
to sell it at $100,000, knowing that the property
is worth $200,000 once it’s renovated, but they don’t wanna do the renovations. They’re just ready to,
they need to liquidate it. Okay, so get this list, and then what you’re
gonna do is skip trace it. And we use a company called and what skip-tracing does
and, right, what skip-tracing is, is when you get this list
of all these homeowners that inherited properties, you skip-trace it. And what it does is they’re gonna give you the phone numbers for
these properties, okay? The phone numbers and once
you get the phone numbers, guess what you’re gonna do. You’re gonna co-call them, okay? You’re gonna co-call them
till your ears bleed, okay? You’re gonna call these homeowners and you’re gonna say,
“Hey, check this out. “My name is Raphael Vargas. “I just bought a property in your area “and I’d love to make
you an offer on your home “if you’ve thought about selling. “If you have thought about selling, “I’d love to make you an offer “and I can do it in just seven minutes.” Okay, and then the homeowner says, “You know what? “I just inherited this property. “I would love to sell this property.” You say, “Great!” You use a tool called the MLS, which is the multiple
listing service, okay, to run comps and understand
the value of this asset that you’re underwriting if
they’re interested in selling. Once you understand that, boom. We know after using MLS, we know that it’s worth $200,000. We look at what investors are buying for, which we’ll see investors
are buying in that area, let’s say for about $120,000. That means if we get it for $100,000, we know we can sell it to a
rehab investor for $120,000, and guess what, walk away with $20K. So this is what you gotta do. Obviously this is a whole
lot to this business and scaling it to the
multimillion dollar level like we have. Glory be to God for that
because I came from nothing. It takes time, but it starts
with taking the first step. Take your first step today. Buy your list, skip-trace it, co-call it, and I guarantee you, you’re
on the first fast track to getting your first deal done. Hey, this is a video
series I’m gonna be doing every single week. So if you want to know
what the next topic is, comment below and I will
look at all the comments and then choose the next topic for the real university
that we’re gonna be doing. Thanks guys for watching. Hopefully this is great advice. (upbeat music)

7 thoughts on “Get Your First $20K Real Estate Wholesaling Deal In 3 Days With Raphael Vargas | REAL Knowledge

  1. Hope You Learned How To Get Your First Deal!
    Make Sure To Drop Your Questions Below For The Next Episode Of REAL Knowledge👇

  2. Omg, Sir, Dude you just broke down wholesaling in less than 6 minutes. You're THEE MAN you rock. I am a new wholesaler and I have watched over 300+ video's since 08/27/19 I grew such passion for Wholesaling mannn you don't even know it.

    I AM GOING TO DM through IG it will be coming from like a dark burned orange logo. Thanks advance.

    I totally appreciate you putting up this video you rock.

  3. How would you go about dealing with a lead whose house/land is worth 700k+? Are there cash buyers out there looking for homes that expensive? Whats a good number for assignment fee with huge spreads like that? For example comps are 900k+ but market value is 500k, seller doesnt have a offer in mind.

  4. Nice video ..FACT: You CAN get a rare list of vacant houses that U.S. Mail Carriers have indirectly provided input. This non-public data is absolutely legitimate.  Test for yourself by getting a sample for free, by zip code.

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