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Updated about 6 years ago on . Most recent reply
First Ever Wholesale Deal!
Investment Info:
Single-family residence wholesale investment in Houston.
Purchase price: $140,000
Cash invested: $100
Sale price: $145,000
First and only wholesale deal to date. Got the property under contract at $140,000 put $100 in earnest money down and sold the contract a week later for a $5000 net profit.
What made you interested in investing in this type of deal?
Motivated seller
How did you find this deal and how did you negotiate it?
Direct mail postcard. The seller originally wanted 160k, but I brought him back to reality with repair costs. I knew it was going to be tight at 140k but i just went for it and managed to sell the contract a week later for 145k.
How did you finance this deal?
I didn't have to. It was a wholesale deal.
How did you add value to the deal?
Added value to the end buyer. He got a property at 65 cents on the dollar.
What was the outcome?
5k net profit
Lessons learned? Challenges?
Don't be afraid to negotiate further down with a motivated seller. If the numbers are already tight give your self more breathing room.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
No
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#1 Marketing Your Property Contributor
- Flipper/Rehabber
- Bakersfield, CA
Originally posted by @Andrew Shadrach:
Investment Info:
Single-family residence wholesale investment in Houston.
Purchase price: $140,000
Cash invested: $100
Sale price: $145,000
First and only wholesale deal to date. Got the property under contract at $140,000 put $100 in earnest money down and sold the contract a week later for a $5000 net profit.
What made you interested in investing in this type of deal?
Motivated seller
How did you find this deal and how did you negotiate it?
Direct mail postcard. The seller originally wanted 160k, but I brought him back to reality with repair costs. I knew it was going to be tight at 140k but i just went for it and managed to sell the contract a week later for 145k.
How did you finance this deal?
I didn't have to. It was a wholesale deal.
How did you add value to the deal?
Added value to the end buyer. He got a property at 65 cents on the dollar.
What was the outcome?
5k net profit
Lessons learned? Challenges?
Don't be afraid to negotiate further down with a motivated seller. If the numbers are already tight give your self more breathing room.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
No
Congrats Andrew...
I assume that you wholesaled it because you didnt know how to buy it as a wholetail deal.
Wholetailing is buying the same way you did as a wholesale however whether then selling it to an investor at a percentage of their profit you sell it at 100% of as is value to an investor.
BTW congrats on the 5K...
However you left 78k minus resell cost on the table. Resell cost average 8.25% of resale value. So in this instance 18k+ or a net to you of 60,000..
Learn how to wholetail.
Congrats on this deal and happy house hunting