Wholesale in Durham NC

[James Hutson]

Investment Info:

Single-family residence wholesale investment in Durham.

Purchase price: $115,000
Sale price: $122,000

A colleague was flipping a home and the couple next door approached him with the desire to sell. I was brought in to discuss options and negotiate terms. There were negotiations back and forth. One of the high costs/repairs for their home was the in-ground pool. Negotiations with the wholesale sales price with the cash-buyer was primarily focused on the pool.

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

The motivation of the sellers and the location were key indicators that this was going to be a solid deal.

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

JV with a colleague who was flipping the home next door.

How did you finance this deal?

End-buyer (cash)

How did you add value to the deal?

Built rapport with the sellers and handled tricky negotiations to get the price to where it needed to be so that it was a win-win-win for the sellers, my colleague and I, and the flipper.

What was the outcome?

A successful and smooth transaction. The sellers were ecstatic to have cash and be able to move out west to live with their children and grandkids.

Lessons learned? Challenges?

Rapport rapport rapport. Even if you FIND a great deal, you must build a relationship with the sellers before you can press for the deal and larger profits. You can't solve their problems and bring value until they're comfortable enough with you to share their situation and what they need. It's difficult for a stranger to ask you to help them solve their problems and improve their lives.

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

Amazing attorney brought by the end-buyer (flipper). Will consider sharing to any local investors upon request.