Investment Info:

Other wholesale investment.

Purchase price: $50,000
Cash invested: $50,000
Sale price: $147,000

This was a great deal that I partnered with a friend on. We picked up a commercial parcel of land not too far off of a main highway zoned for self-storage (and other uses) for $50k. Here is how the numbers worked out:

Gross sale price: $147k
Closing fees, return of capital: $61k
Total profit to split: $85.6k
Share per person: $42.8k

Here are some lessons that I'd like to share:
1. Do work - If you do the work you'll get some big ones occasionally, it is a numbers game.

2. Do good due diligence - Larry and I mailed the same seller, the seller contacted me back and I did lazy due diligence due to so many offers and passed on it. Larry was more thorough and saw the true value and put it under contract.

3. Use your network - My partner and I met in an online group, he posted that he was looking for a money partner and I happened to have a few bucks for that purpose.

4. Don't be afraid of your mistakes - I missed the profit potential the first time I looked at this property, but I didn't let my pride get in the way to review a second time.

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

This is my side business, wholesaling and creating cashflow through owner financing.

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

I found the person that had the deal through networking and direct mail.

How did you finance this deal?

Cash money!

How did you add value to the deal?

Talking to knowledgeable brokers in the area and comps.

What was the outcome?

Flipped it in 6 months to split $86k profit 2 ways, or 86% ROI (172% annualized)

Lessons learned? Challenges?

See posting

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

Jason Strain!