Case Study: First Wholesale Deal Using Deal Run
This case study follows a new wholesaler in Charlotte, NC through their first deal from start to finish. No prior real estate experience. No existing buyer list. No mentor. Just the willingness to follow a process and the tools to execute it.
Weeks 1-2: Market research
The wholesaler focused on one zip code: 28205 (Plaza Midwood / NoDa area). They studied comparable sales, rental rates, renovation costs, and active investor activity. They identified that flippers were active in the area with a typical ARV range of $250K-$350K and that landlords were buying properties that rented for $1,400-$1,800/month.
Weeks 3-4: Lead generation
Using driving for dollars (DealMachine app), the wholesaler identified 45 distressed properties. They sent handwritten letters to all 45 owners. Three responded. One was a motivated seller: a 3/2 with foundation issues that scared off retail buyers. The seller wanted $135,000.
Week 4: Deal analysis
The wholesaler ran the numbers in Deal Run. ARV: $268,000 based on 4 comps. Repairs: $55,000 (foundation $12K, kitchen $10K, bathrooms $8K, flooring $6K, paint $3K, HVAC $7K, miscellaneous $9K). MAO at 70%: $268K x 0.70 - $55K = $132,600. The seller's $135,000 was slightly above MAO, but the deal still worked at an asking price of $148,000 — leaving the buyer 21% margin after repairs.
They negotiated the contract to $130,000 with a 14-day option period and $500 option fee.
Week 5: Disposition
Day 1 of disposition: investor search identified 31 investors within 0.75 miles. Skip traced 20, got valid info for 14. Created a deal page with photos, comps, repair breakdown, and offer form. Sent email blast to 14 new investors.
Day 3: Two responses. One flipper who specialized in foundation houses (they knew about this before the wholesaler did). Walkthrough scheduled.
Day 5: Walkthrough completed. Flipper confirmed the foundation repair scope and submitted an offer: $145,000, cash, 14-day close, $2,500 EM.
The wholesaler countered at $148,000. The buyer accepted at $147,000.
Week 6: Closing
Clean title. Straightforward closing. Assignment fee: $17,000. Wait — $147,000 - $130,000 = $17,000? The new wholesaler's first deal produced a $17,000 assignment fee, not the $7,500 they expected when they started.
Lessons from a first deal
- The hardest part was lead generation, not disposition. Finding a motivated seller took 4 weeks. Finding a buyer took 5 days.
- The investor search found a buyer the wholesaler would never have known about. A flipper who specializes in foundation properties — the perfect match for this specific deal.
- Professional presentation mattered. The buyer commented that the deal page was "better than what most experienced wholesalers send."
- The numbers worked because the analysis was done first, before making the offer. No guessing.