Flip Turned Wholesale Deal - Made $33,550 in 24 hours

[Gabriel Graumann]

Investment Info:

Single-family residence wholesale investment.

Purchase price: $285,000
Sale price: $320,000

Property hit the MLS around 9:00am in the morning and happened to be just around the corner from my office. Toured it within 15-mins of it going live. Intended to fix and flip, so I arranged a meeting with the seller and his broker one hour later. I had an offer in hand that I gave a 1-hr expiration time frame. Seller agreed prior to us leaving the property. As I do with many of my potential fixers, I sent the listing to 5-6 investors including another investment group out of Seattle who had interest. We met the following day and were willing to take it on assignment, waiving all contingencies and close it within 13 days.

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

Large lot with shop, private location for being in the middle of the city, and plenty of upside for a BRRRR, fix & flip, or wholesale. I like deals with multiple exit strategies in place.

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

It was listed on the local MLS and I was able to meet with the seller and his broker directly within 2 hours of the property going live. Whenever possible, MEET IN PERSON with an OFFER IN HAND.

How did you finance this deal?

Utilized cash on hand for the EM, but wholesaled the deal prior to closing so additional funds not necessary.

How did you add value to the deal?

Marketed the property to investors looking for a project.

What was the outcome?

Wholesaled the deal for $25,000, and because I'm a licensed broker and the deal was assigned, I remained the broker of record for representing the assignee/buyer and collected the buy side commission.

Lessons learned? Challenges?

No challenges on this one, but a lessoned that was reinforced on this one is "meeting in person whenever possible is helpful for humanizing the process." Sellers are people and they have a variety of reasons for selling, so getting face to face to discuss these and work through the emotions is beneficial most of the time.

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

I'm a licensed broker, so I represented myself on the initial purchase followed by acting as the buyer's representing broker.