Wholesale to institutional investor in Marietta, GA

[Tom Townsend]

Investment Info:

Single-family residence wholesale investment.

Purchase price: $315,000
Sale price: $375,000

We assigned a contract to another institutional investor looking for long term holds.

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

Growing area with high demand for rental and other SFR homes. The home needed work and seller was not wanting to invest any money into repairs, and did not want to have the home shown on the open market.

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

As agents we have a large sphere and this opportunity came to us through another client of ours.

How did you finance this deal?

We Wholesale it so no cash ws needed from us. We were originally planning to finance as a long term hold investment property with 20% down.

How did you add value to the deal?

It was a win -win - win for all parties. The client wanted an easy solution to selling a property that needed some repairs. She did not want anyone visiting the property, and she wanted to work with someone that was referred to her, not a "stranger" or large company. The investor was happy to have another property in their portfolio, and we put it all together for an assignment fee plus commission on the sale.

What was the outcome?

Property sold within 3 weeks, we negotiated a 30 day temp occupancy so the seller had plenty of time to move into a new home that we sold her.

Lessons learned? Challenges?

Institutional buyers are willing to buy homes that do not cash flow in our market. They are willing to pay a higher price for the long game of appreciation.

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

We are agents and appraisers.