1st Wholesale Deal (and Investment Deal)

[Justin Smith]

Investment Info:

Single-family residence wholesale investment in Foley.

Sale price: $62,500

Contributors:
Eric Patrick Oden

1st Deal! Lead was through 1st month of direct mail. Wholesaled through Flipper I had met on BP and networked with at Local REIA. Short term seller finance with large down payment. Had to close in 6 days.

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

Seller was extremely motivated and property was distressed but in a good location.

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

This was one of my leads from my 1st month of direct mail. Seller lived two hours away and had not been to the property in years and had done almost no repairs to house in that time. Tenants had been living there for 8 years. All negotiations were done over the phone. After buyer inspected I had to go back to seller and ask for a price reduction as I had missed some things on my inspection (one bedroom was missing a closet), no laundry room.

How did you add value to the deal?

Built rapport with seller which helped with negotiations.

What was the outcome?

Closed 6 days after contract with seller was signed.

Lessons learned? Challenges?

Need to improve my systems and have a better checklist for estimating repairs. Since this was my first deal pretty much everything past the initial lead call and appointment was a new experience.

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

Closed with Sloane Autery at Crane Title. She did a great job turning around the title work in such a short period of time for the close.