The Large Brick Home That No One Wanted...

[Scott Johnson]

Investment Info:

Single-family residence other investment.

Sale price: $225,000

We originally made an offer of $190,000.00 and went under contract. I sent it out to my buyer's list and my VIPs for $210,000.00 and didn't get any interest. My Realtor friend sent it to his list and got the same result.

In a "last-ditch" effort I was able to convince the "not so happy" seller's daughter that we should list it on the MLS. She begrudgingly agreed and my fellow Realtor listed it at the $210,000.00 price point. ON DAY ONE WE GOT AN OFFER OF $225,000.00 FROM A LOCAL BUILDER...

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

The area in Grimesland, NC is beautiful and mostly quiet, so I knew that it would sell well. It was also in danger of going into foreclosure, which is a type of deal I'm good at negotiating.

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

I received the lead from my website and I worked with the seller's daughter to figure out how much they owed on the property and how much money the seller needed to walk away with.

How did you finance this deal?

I didn't. Failed wholesaler to listing.

How did you add value to the deal?

Honestly, by bringing on a partner. The value to the seller was great, but the value that I received was awesome too since I didn't do any of the work for the listing. I just collected my commission after it was sold.

What was the outcome?

The seller made a lot more money than they thought and it was a great flip for the buyer. They put $70K into its Pending at $365K. I'm interested to see how much it closes for!

Lessons learned? Challenges?

Not all deals are best wholesaled. In this situation, the client's best option was listing. I'm constantly learning how I can provide the best solution for my clients, and this was a wake-up call.

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

Yes, I worked with a Realtor in my office.