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Updated over 7 years ago,
SF Bay Area Wholetail
We were emailed a list of properties from my partners mentor. He had too many projects on his plate and forwarded us this email from an agent he was in touch with, who he had sent finished projects to for some time. There were a few properties but only one made sense, and it made a lot of sense. The property was about 40 miles away, but that is a couple hours in the SF Bay Area, but we needed to act quick and get so we got in touch with the agent and scheduled a showing the same day. That evening we wrote a clean quick close offer at $315k and it was accepted in a couple days.
Our plan as was with all of our properties was A. try to wholesale/tale, B. flip it, C. hold and rent. The numbers on this one were so good that we had no problem wholetaling it. Comps for this property were $500k on the conservative side. We cleaned out the trash, as there was a lot, and then held a couple open houses and had about 50 people through, all kinds of lowball offers but only a few got to our number. While we were holding the open houses we started getting contractor bids to move to the rehab process if we weren't able to get our number.
We ended up wholetailing it for $370k. After closing costs, cleaning, and other miscellaneous costs we grossed $50k. From that we gave the real estate agent a $5k bonus and then my partners mentor roughly $5k for the lead. After all was said and done we walked with $40k. There was still plenty left for the flipper, he ended up selling it for somewhere around $580k. You may ask why didn't we just do the rehab, we would have tied a lot of time and money up and probably wouldn't have been able to rehab the 4-plex that we are almost done with now. We would have had to wholesale/tail the 4-plex or partner and would not have gotten the full profits which will be our biggest win to date.
Key takeaway with this property was we acted quick and made a clean professional offer. The agent had a few other offers at the same price or even better. But we showed we "knew what we were doing," as his other offers were asking basic questions to him about the title report. He figured he was going to have to hold their hand throughout the process and went with us instead. We definitely did't know what we were doing and are still learning a ton. The only thing we are good at is running comps and pulling the trigger. Here's a couple pictures, they dont show much other than what a clean fixer looks like, but I figured people would like them. Should have taken the before pictures from this, it was awesome.