Wholesaled my very first deal!
Investment Info:
Single-family residence wholesale investment.
Purchase price: $227,500
Cash invested: $500
Sale price: $232,500
Very first wholesale deal and what a learning curve! So glad to have the first one under my belt. I hope to make a bit more on deals, but not loosing money with a huge learning curve is a positive.
What made you interested in investing in this type of deal?
I am working the wholesale angle to build capital for future flips and buy and holds.
How did you find this deal and how did you negotiate it?
It was on market. We were one of the first ones to view and offer. We offered and they accepted. Our offer was way over the usual 70% of ARV minus repairs. We figured better to make a little and get the deal.
How did you finance this deal?
We brought the earnest money out of our personal bank account $500 and fortunately found an end buyer within our inspection window.
How did you add value to the deal?
Honestly, a lot of luck and finding an end buyer who was awesome to work with.
What was the outcome?
We are closing a week from today. All looks good to close on time.
Lessons learned? Challenges?
Stick with the formula, because your ARV isn't necessarily the end buyers ARV and same with repair estimates. Also, average per square foot isn't always the way to figure ARV
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Agent on the buying end and Investment Firm on the assigning of contract end.