Quick transaction and I helped the Seller

[Jacobo B.]

Investment Info:

Single-family residence wholesale investment.

Purchase price: $270,000
Sale price: $290,000

I found this property through the MLS expired list. I skip traced the address, but I could not find the owner's information, so I knocked on the door. We talked and she explained to me that the house was in foreclosure and that she had an auction date 20 or so days. She was ready to give up, but I was able to convince her to sign a purchase contract. I found a cash buyer and we closed before the auction date. She ended up with $80k in her pocket and I was able to negotiate a $20k assignment fee.

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

I got interested in this type of deal because I don't have any money for big investments and, by wholesaling, I can make quick money by just focusing in finding good deals for other investors.

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

I found this deal on the MLS by looking at expired listings. Because the owner was disappointed with her whole situation and was almost given up, I was able to tell her that she can end up with some money and it would not cost her a dime. I basically told her to give me a chance, that she didn't have anything to lose and a lot to gain.

How did you finance this deal?

I didn't need to finance it. End buyer brought all the money to close.

How did you add value to the deal?

End buyer needs property for his next project, and I was able to help the owner by getting her money to start over again.

Lessons learned? Challenges?

You need to talked to cash buyer about their needs and have them ready for when you find a good deal.