Camden St. Single Family Home

[Paul Ivanov]

Investment Info:

Single-family residence wholesale investment.

Purchase price: $95,000
Cash invested: $2,000
Sale price: $123,000

First wholesale that turned out to be quit the success!

We purchased this property from a gentlemen we had previously done some contracting work for at his personal home. It was used as personal storage at the time since he moved several years prior and lived a few minutes away. Looking to liquidate the property, he asked if I was interested before he listed it on the RMLS. With no experience and little cash, we decided to purchase it after inspecting the home. With only $2,000 in the account for the earnest money we agreed to a price of $95,000. This quickly forced us to get very creative! I had mentioned this deal to my brother who then referred me to an interested party willing to take on the contract at $123,000 one week into our initial purchase agreement.

Three weeks later, the property closed and we walked away with our original $2,000 earnest money plus the $28,000 profit from selling the contract.

Purchase Price: $95,000
Cash invested: $2,000
Sale Price: $123,000

At Closing:
Earnest Money Returned: $2,000

Profit: $28,000

What made you interested in investing in this type of deal?

Honestly it happed by accident, I declined the original offer 3 times until he mentioned that he was going to list it with an agent. Although I am very interested in doing a buy and hold for future deals to build our rental portfolio.

How did you find this deal and how did you negotiate it?

One of our customers we had done some contracting work at his personal home. We offered $90,000 and his countered with $95,000.

How did you finance this deal?

We put $2,000 for earnest money which we got back at closing after selling the contract to a third party.

How did you add value to the deal?

None, SOLD AS IS

What was the outcome?

A huge learning curve and confidence boost plus $28,000 profit.

Lessons learned? Challenges?

Lessons learned:
1) Writing up a purchase agreement
2) Writing up An Assignment agreement

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

N/A