I'm scared to ask my acquisitions manager Noah for another check pic... We don't normally get checks (because it's 2019) but this wasn't from our normal title company. So many investors operate under the assumption that people have to be "desperate" to sell to them. These folks had cash to remodel it themselves, had an appraisal done, had talked to realtors, and knew their options. They simply wanted to hit the easy button.

So how did we do it?

This deal is a perfect example of my philosophy: Keep the best and wholesale the rest.

The sellers simply wouldn't sell at a price that we could successfully Brrrr out of. This lead was a referral from someone we bought a house from earlier this year. The challenge was that the sellers had a full appraisal done and it came in at 137k right before they called us.

Here are the notes from my acquisitions team:

"Lets call ARV 145k. Needs: dumpster and clean out (2k), interior paint (4k), kitchen and appliances (4k), carpet in areas (2k), flooring (2k), misc (1k)
ARV = 145k
75% = 109
rehab = 15k
wholesale = 94k
mao = 90k

I'll start this around 85 and see what I can get from here."

The seller wouldn't budge off of 100k.

Lesson: Don't be afraid to exceed the 75% rule on nice vinyl village deals you plan to flip or wholesale.

We almost walked...

We sold to a hedge fund for 87% of ARV. Purchase of 100k. 6k for the buyer's agent. Sold for 127k. The number above was our net profit. We did close and sit for 2 weeks while the fund did their thing.

Here is the actionable piece here: My team had over 10 follow up conversations and was outright rejected 3 times before we got this deal.

Are you being persistent?

Pro tip: If your team doesn't have fun while they're making money you may suck to work with. ;)

Not a bad week to pull in 18k net, have my podcast go live, and close on 5 new units for the portfolio.

To find hedge funds in your market I would suggest trolling vinyl village sold comps off the MLS. Looks for properties that are owned by strangely named LLCs, trusts, and non-disclosure state entities. Reach out to the buyer's agent and see if their clients are still purchasing.

**Note** : Hedge funds are typically only really looking for this kind of asset: Built post 1995, 3/2, 1200+ sqft in a B class neighborhood or better.

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$18,934 Net Profit Wholetale

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