Intended Buy and Hold Turned Wholesale

[Benjamin Stanley]

Investment Info:

Small multi-family (2-4 units) wholesale investment in St George.

Purchase price: $325,000
Cash invested: $2,510
Sale price: $327,000

Stumbled into this one without even realizing I was "wholesaling" until later. Got it under contract with a local real estate agent with the plan to hold it. I happened to check the MLS the day it was listed. Realized it needed way more rehab than I was comfortable with, but still thought it was a good deal regardless. Talked with my agent about checking if any of his other clients might be interested in taking it over for an assignment fee. He found one and I ended up making $1,990.

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

Was motivated to look for 2-4 unit homes after watching a BP webinar on the topic.

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

I did a google search for multifamily homes for sale near me. Negotiated through a real estate agent. I know I could have made more money doing it alone, but my negotiating experience is limited so having an agent to help made the deal go through where it probably wouldn't have otherwise.

How did you finance this deal?

I used my own cash for a $2,500 earnest money deposit and joined forces with my dad for a VOF on a down payment (paired with a private money loan). We had a "cash offer" that helped us beat out the other two or three offers on the place.

How did you add value to the deal?

Didn't do much. I made just over a full price offer with really attractive terms. The value was honestly just having the rights to the contract.

What was the outcome?

I made a little bit of money and learned that I can wholesale!

Lessons learned? Challenges?

I think the biggest lesson on this one for me was that if you just start doing stuff, things can happen. In some ways I was fortunate to be surrounded by people that helped make this deal work, but nothing would have happened if I didn't even try to make an offer.

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

Worked with Mark Jensen with Realty Executives. He was very helpful and professional. Provided advice as well as expertise throughout the whole process. Also used Larry Blake with Southern Utah Title to put together a private money loan for VOF . . . we didn't end up taking the loan out, but he was instrumental in helping us get it under contract.