Fifth wholesale deal

[Alex Bock]

Investment Info:

Single-family residence wholesale investment in Davenport.

Purchase price: $33,000
Cash invested: $10
Sale price: $36,000

This property had a lot going for it but it also needed a lot of work. I would call it a home-owner special.

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

I purchased a list and reached the owners via cold calling. The negotiation process was long and varied. I was going to purchase it myself on contract after they declined the cash offer. They changed their mind (Which in all honesty I was alright with as I wasn't sure how I was going to fund the rehab) and decided to take the cash offer.

How did you add value to the deal?

I did a lot of the legwork for the investor including getting renovation bids and reaching out to the city about how to get everything up to code.

What was the outcome?

The property was sold to an investor who I now have a working relationship with and is happy with the purchase price.

Lessons learned? Challenges?

With the right circumstances, you can get really attractive owner financing terms. Just make sure you have a way to pay for the rehab. When it came down to negotiation, I could have been a little closer on my numbers and a little more stern with the sellers when it came to the cash offer.