My first whole sale deal!

[Paul Malott]

Investment Info:

Single-family residence wholesale investment in Cincinnati.

Purchase price: $26,500
Cash invested: $100
Sale price: $36,000

This was my first whole sale deal, found it on facebook market place. I went to the open house alone and didn't know exactly what I was doing. Multiple people attended and were interested in the property so I realized I should implement my sales knowledge and build rapport with the seller to separate my self. After building trust, the seller informed me the highest offer so far was 25k and I'd have to beat that if I wanted a chance. On my drive home , I had a gut feeling and called the seller back to offer $26,250, she went and told the other investor who offered 25k, he countered at $26,500 , she called me back to let me know and said she'd rather sell to me so If I could match the price then its mine. We signed the contract the next day and I gave the seller $100 cash EMD. I had a few local investors in my network who I pitched the deal too for 38k. One of them said he had a buyer for 36k. I took a leap of faith and sent him my contract. The buyer took for ever to do their diligence which resulted in me convincing the seller to give me not one, but 2 contract extensions. We ended up closing the deal around 2.5 months after signing the first 30 day contract. The title company didn't want to do an assignment due to my fee being almost 50% of the amount the seller would receive so they recommended a transactional lender who provided the title company the 26.5k for me to purchase and do a double close. The transaction loan cost $1,000 and came out of my commission at closing. I paid 40% of my fee to the local investor who provided the buyer. I cleared a little under 5k.