First Wholesale property

[Sean Nelson]

Investment Info:

Single-family residence wholesale investment.

Purchase price: $210,000
Cash invested: $1,000
Sale price: $220,000

3 Bed 2 Bath Single Family WholeSale
ARV 425,000
Buy 210,000
Wholesale fee 10,000
Renos 140,000 (investor doing a buy and hold and Renos for way less, Aproximately 80,000
Investor All in price Approximately 305,000
Owns for 71% of appraised value

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

I was looking for a flip

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

A friend/birdog pointed this out on Facebook. First negotiated from 280,000 to 260,000
Viewed it and had an inspector go through it then negotiated and tied up on paper for 230,000
While in subject removal I got all my contractor quotes in order and then Re-nogiated to 210,000 using those as reference

How did you finance this deal?

I ended up wholesaling this to an investor I had pitched another deal to.

How did you add value to the deal?

I Organized all required quotes, got a home inspector in and also ran comparatives through out the market and also got a potential ARV through an appraiser.
Then used my network to attract an investor

What was the outcome?

Wholesaled for 10k
Owner avoided foreclosure
The buyer turned into a JV Partner for future deals :)

Lessons learned? Challenges?

Your Network is your net worth and can get you out of a sticky situation or one that is running out
You always learn way more going through the process and working through the deal
Be honest through out negotiations
Divorce and Forclosures make for great deals
Motivated sellers will negotiate
Bring third parties to the table (appraisers, inspectors, contractor quotes)
Thank and pay all parties (birddog $500, good contractors-thank-you letter and $50 gift card fordinner)
Buyers=Jv partner

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

Shaun with Viking Appraisals outta Kelowna BC
Pillar To Post inspections
BWP construction in Salmon Arm (SA)
Boss Landscaping SA
Spark Electric SA
Axon Plumbing and Heating SA
Applewood HVAC Vernon
Pretab- Remax Vernon (young and Hungry)