First deal after a 5.5 year break

[Jamie Parker]

Investment Info:

Single-family residence wholesale investment.

Purchase price: $255,000
Cash invested: $100
Sale price: $260,000

3 /1 894 sqft

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

The property is in an evolving area with an overlay for Detached Accessory Dwelling Unit.

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

Cold Called the seller. The seller had an offer for 250k. The seller wanted to get 300k. I informed the seller that because of the overlay, the property may be 2 build eligible in-spite its small lot size. When under contract at 300k with the expectation that codes would be the determining factor on what can be done on with the property, as it relates to new construction.

While the property was 2 build eligible, due to the lot size, highest and best use would be to rehab the property.

Lessons learned? Challenges?

Lessons learned are related to the title process I use with sellers and buyers. I gave up time with the expectation that the buyer would be able to close sooner. The time allotted on the initial contract was ample time for the buyer to close. I was eager to get one on the board and moved the dates up a week. That move created frustration on my part and the seller and had to amend the original contract.

Do not get eager for the close. Allow things to play out, unless the buyer closes sooner.