First Wholetail and Land Sale - Adding Tools to the Tool Belt

[Blake Dailey]

Investment Info:

Small multi-family (2-4 units) other investment in Panama City.

Purchase price: $130,000
Cash invested: $132,441
Sale price: $174,718

Contributors:
Logan Boesch

This was a wholetail property that could have been a great investment with a few different strategies. BRRRR'nb, flip, wholesale all could have worked. My partner and I closed it and turned around and listed the lot and sold the house to another investor to do the rehab. The timing worked out for both of us to avoid and extensive rehab and make a quick profit to allocate to other important areas in our businesses. We sold both quickly for a $41,000 net profit (before taxes).

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

Originally, I liked it for its BRRRR'nb potential (where you buy, rehab, and rent the property as a short-term rental) because it was in a good location, with a bay view and close driving distance to the beach. It also had meat on the bone to rehab. What really made the deal work, however, was the adjacent lot of land owned by the same owner. We negotiated that into the deal on one contract and that made the numbers sing for us.

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

I found this deal from a wholesaler who lost the contract so elected to give me the seller's contact info. I contacted them and we completed the deal directly with the seller (technically with a family member acting as a broker).

We negotiated the lot and the land together to make the purchase simpler for them. We also closed with cash in two weeks because time was an issue for them.

How did you finance this deal?

My partner and I used our own cash.

How did you add value to the deal?

The equity was already there. We wholetailed the lot (listed it on the MLS without doing any improvements) and sold the house to another investor who will do the rehab. We didn't list the house but an agent friend of ours brought a buyer so she made a commission. Win-win-win

What was the outcome?

We sold both the lot and the land the week before Christmas and made a $41,000 (before tax) profit. A nice little Christmas bonus for being good boys all year!

Lessons learned? Challenges?

Lots of lessons learned. I wrote a blog post on my website about this (as I do with all my deals). Basically - don't be greedy, purchase title insurance, be transparent, and help those who help you.

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

Yes, two local agents who are both rockstars in their own right.