Wholesale Deal... How does it work to make money in RE Investing?

[Doug Crenshaw]

Investment Info:

Single-family residence wholesale investment.

Purchase price: $39,600
Cash invested: $39,600
Sale price: $58,900

Bought it as a Pre-Foreclosure property and managed to get the owner some money and then my partner and I split $19K by wholesaling it to a new owner occupant.

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

Wholesaling properties is a quick way to make some money without rehab costs or long term holding expenses. The trick is to buy it right and sell it fast...especially if you are using hard money lenders!

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

I knock on doors and speak with the home owner that is going through the foreclosure process. Some I help keep their home and some are well beyond help and need to sell quickly. Negotiating is more about the short sale with the bank thn with the home owners. Some banks are easier than others it just depends on who you are speaking with and how many properties they are dealing with at one time!

How did you finance this deal?

Cash purchase...

How did you add value to the deal?

Getting the bank to short sale the property is where we were able to get a low enough price that we could still sell it under market to accommodate the buyer in being able to make money on the deal as well.

What was the outcome?

Made money!

Lessons learned? Challenges?

Just the period of time for the short sale process which is usually where using hard money will eat up profits if you are not careful!

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

Me, myself, and I... I use the MLS to get the comps and I used the Clerk of Courts files to find the properties.