Wholesaling, clean-out and a fresh trim to overgrown brush.

[Jon Parton]

Investment Info:

Single-family residence wholesale investment.

Purchase price: $20,000
Cash invested: $3,000
Sale price: $55,000

Wholesaled this sweet deal #60 since 2018
I bought the house from a desperate absentee owner. I evicted the tenant, put in my own tenant (single guy handy-man going through a divorce) I trimmed out the brush surrounding the house and had him cleaned it out. Total cost of holding the house was a little over 5K including taxes and utilities.
Sold the house to the company the original seller had called numerous times but they had never called him back.

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

I got this for a sweet price in a great area. There were multiple exit strategies and I personally wanted to build on the land.

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

This owner had called every wholesaler in town and nobody had shown interest in his house. It stunk and the tenant was a Stage 5 hoarder. It took me 5 months to close the deal with the owner but no other wholesalers would call him back.

How did you finance this deal?

I borrowed money from a private lender.

How did you add value to the deal?

I cut out the brush that had overgrown the property. I hauled out all of the garbage and burned it in the backyard.

What was the outcome?

30K

Lessons learned? Challenges?

The challenge was the yard. It is expensive to cut down trees but I lucked out and this property was outside of city limits and the county didn't poke around.

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

No I put signs in the yard to sell and I received the call off of one of my bandit signs.