1 month wholesale flip - No repairs. 3 days work. $5k profit.

[Paul Meyer]

Investment Info:

Single-family residence wholesale investment.

Purchase price: $8,800
Cash invested: $10,000
Sale price: $21,000

Held on the property for just about a month (took 3 months to close). I was planning on fixing it up and flipping it for around $90k putting $40k into it. However, after I drove 2 days through a snow storm from Virginia Beach to Urbana it only took me 2-3 hours there to make a decision to wholesale it off to the next local investor even though I had a van filled with tools. This was an unseen purchase and most of the time no matter the shape I can do well. However, this was such bad shape I was calling full demolition companies to just sell the lot or build a new house on the lot. When I bought it I knew I got it for a great price regardless. The area is midwest so not really high value homes, but for the size it was doable.

I immediately got a top selling realtor and before we both listed it we already had a buyer the first day it was on the market for $21,000. After commissions, travel, and capital gains taxes I'll net around $5000 just for around 3 days worth of work (2 days driving). Not bad. On to the next two deals.

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

Price. Not many deals in this price range. I only look for stuff between $0-75k to buy in cash so low inventory currently.

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

Researching auction sites/live auctions. So far I've bought 75% off auctions. Just easier, you win, you pay, you take over it.

How did you finance this deal?

All cash.

How did you add value to the deal?

Got a top notch realtor. Helped co-write a really good MLS ad.

What was the outcome?

Sold in 1 day.

Lessons learned? Challenges?

Junk property. Could have been better. If you can see/inspect something even from outside DO IT if you can't just make sure you don't pay a lot.

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

I used Ryan Dallas Real Estate team in that area. They were top 10 in Zillow.