My Grand Forks Real Estate Wholesale Deals

[Layton Erickson]

Hello,

I want to update on one of my recent wholesale deals. This one was a pretty simple wholesale deal. This property was a duplex up top, with a possibility for a fourplex as the basement units were framed but in rough shape. 

At first, I thought it was a good wholesale deal! The owner wanted what they paid for the property 15 years ago and the upstairs was in decent shape when I walked through it. With a price in mind, I called my contractor/investor I knew and we then walked the property again because I wanted a second opinion.

He did not agree with my price. We walked through it and the upstairs units were fine and basically rent ready. The downstairs was terrible. There had been signs that the basement was moist/had been flooding for at least a year or two if not longer. Looking at every other house on the block, I saw that each of them had multiple sump pump hoses coming out of their basements, while this property didn't have one. 

With that in mind, I renegotiated with the seller and we decided on a price that the buyer felt comfortable with, (the buyer being my contractor that walked the property with me). His plan was to spend the money to convert the property to a four-plex. We closed a few weeks ago and it worked out for all parties as the seller got rid of a property that was causing them headaches, the buyer got a cash-flowing property from day one that will cash flow as they convert it and I got a check for facilitating it.