Wholesale deal in Woodstock, GA

[Tom Townsend]

Investment Info:

Single-family residence wholesale investment.

Purchase price: $154,700
Sale price: $171,600

Wholesale after deciding not to hold.

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

Great area, perfect rental home in an area with high demand.

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

We have years of working with probate properties and estates. We met with the executor to the estate and had a conversation about what they were wanting to do with the property and what was the most important. The family wanted an quick and easy solution, they did not have the time or money to put into the property. We wrote up an offer that was fair and a win-win for all with the intention of holding to property.

How did you finance this deal?

We ended up assigning to another investor they could flip after we found that the HOA has some restrictions on rentals.

How did you add value to the deal?

We provided a quick and easy solution to the family members that were from out of town, and did not have the time or money to invest into renovating and selling the property on their own.

What was the outcome?

We closed on the property in two weeks. Everyone got what they wanted in a timeframe that was desirable to all.

Lessons learned? Challenges?

Once I determined that it was not a good cash flowing hold property, and has rental restrictions in the neighborhood, I should have bought and flipped myself versus wholesaling. The investor we assigned to, sold for 25K more than I thought they would have been able to sell for.

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

I'm an agent and appraiser.