1 of 2 lots wholesaled for my first time

[Anastasia P.]

Investment Info:

Other wholesale investment.

Purchase price: $19,000
Sale price: $20,000

This is one of two lots I got under contract in Port Charlotte, FL from the same seller.

Sold it to a builder for $20k. This was part of my first wholesale deal and I’m excited for new investments in the future.

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

Took a course from someone I knew and seemed like a good way to get your foot in the door with no upfront investment. I also had somebody willing to do most of the work if I just did the outreach.

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

I text blasted a list of sellers using REI Reply. We pulled the list with my partner from PropStream and negotiated a price with the seller.

We initially contacted for one lot, but it turned out the seller had two lots he wanted to get rid of. He was asking $40k for both lots with all expenses covered, but we could only do $38k and he agreed.

The entire deal took about 3 months to close.

How did you finance this deal?

No financing was required since we were assigning this to a buyer.

How did you add value to the deal?

We brought a lot to a buyer who was looking for land in the area of 33948 in Port Charlotte, FL.

What was the outcome?

We made a $1k profit from each lot, so $2k total. The buyer wanted to double close so that was an additional cost. This was also a 35/65 profit split with a JV partner so the profit was small, but lots of lessons learned.

Lessons learned? Challenges?

I learned that you should contract at least $3k-$5k under what the market value is at to make room for bigger margins in case the buyer goes down. Our expectations for this was to assign to buyer for $23k, but they ended up only wanting it for $20k.

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

Just another wholesaler