Stinky Wholesale & Flip

[Ginny Adkins]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $100,000
Cash invested: $50,000
Sale price: $275,000

One of my first flips. I wholesaled it to my broker and then was the project manager of the deal. $45,000 on the front as wholesale deal and then earned 29% of the profit at the sale. It was going to auction for tax delinquency in 3 weeks so we had to move fast. I also had to find another residence for the owners which I managed to do and double close, move them on the same day.

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

I love renovations and design, always wanted to flip houses

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

My daughter brought me the deal to help some co workers out of a bad spot. They were about to be homeless as they got notice their house was being sold for back taxes. We bought the house cash and I also found them another to move into. We closed both on the same day and got them into something affordable.

How did you finance this deal?

I wholesaled it to my broker, then we partnered with private lenders IRA's to fund the deal.

How did you add value to the deal?

It was in bad shape with cat feces everywhere and had to completely gut the house (except kitchen cabinets were new), converted a loft to another bedroom and renovated to new.

What was the outcome?

We sold it in 6 months for a net profit of $52,250 (plus I got another $45K as a wholesale fee)

Lessons learned? Challenges?

I learned not to mess around trying to get rid a pet odors myself! Just pay and get it done. The delay took too long.

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

My broker was a property manager and we had good vendor pricing. I sold it as an agent which lowered cost too.