First Deal-(Dayton, OH) Profit $7,000

[Patrick Lee]

Investment Info:

Single-family residence wholesale investment.

Purchase price: $58,000
Sale price: $66,000

Tax Delinquency Deal-Pay Off Statement of $20,000 settled through negotiation for $5,000.

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

I was looking for my first deal and I was able to get connected to a tired landlord who wanted to walk away debt free. It offered a high need of motivation that helped seal the deal with the lender and title company. Closed in 21 days.

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

I found this deal by having one of my students find the deal for me and when he found it. I offered him 50/50 profit sharing for his efforts.

How did you finance this deal?

This was a wholesale deal and used $0.00 of my own money. Nothing was needed to invest as the end buyer was highly untested to acquire this property and covered every fee included. Even the closing fees.

How did you add value to the deal?

I added value to the deal by finding the lender and making sure he could sign the necessary pay-off statement provided by the title company. Otherwise the deal would not have been able to close on. I skipped traced his information from county records and found him after calling 25 different numbers.

What was the outcome?

The outcome of this deal is that we was able to profit $7,000 and was able to negotiate with the lender for a $5,000 pay-off for him to walk away and approved the title transfer .

Lessons learned? Challenges?

I learned that working with others who know what to do can help make the deal finding process easier. Especially when you dispositions tools already in place. The biggest challenge was finding the lender to get him to sign the pay off statement.

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

I did not work with any lenders, hard money options or use any out of pocket expenses. This wholesale deal was strictly word of mouth.