Fixer Turned Wholesale Deal

[Gabriel Graumann]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $350,000
Cash invested: $10,000
Sale price: $376,500

Fixer Turned Wholesale Deal

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

Always looking for single-family fix and flip opportunities, and this one met several parameters.

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

A wholesaler sourced the deal, price was negotiated down to $340 plus a small fee to the dealer as his clock was expiring to execute.

How did you finance this deal?

10% down payment, hard money for the balance.

How did you add value to the deal?

Removed all personal items & performed demo/debris removal.

What was the outcome?

Resold to buyer looking for a buy/hold opportunity.

Lessons learned? Challenges?

The deal penciled really well on our initial intake. A few surprises with the basement that increased the job costs and ARV, but overall it still would've been a great fix and flip. The contractor I partnered with wasn't able to dedicate the time necessary to complete the project within my desired timeline and my other contractors who tied up on projects for several months, so when provided the opportunity to resell for a very small but quick profit, I pulled the trigger on the resale.

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

I self represented for the purchase and resale; second buyer was also a licensed broker.