Wholesale Deal in A Class Suburb with Large Spread

[Eamon M. Keane]

Investment Info:

Single-family residence wholesale investment in Hingham.

Purchase price: $460,000
Cash invested: $100
Sale price: $497,000

Single Family property that was listed on facebook market place for months. New Properties in Hingham, MA go for double the price per square footage so I saw plenty of meat on the bone. I brought in an experienced investor to JV this deal because it needed an extensive rehab and expansion. She helped with the project planning, guiding the buyers (new investors) set up with financing and guiding my team through the city approval process.

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

The opportunity to gain experience under a veteran investor, builder, wholesaler and execute a wholesale assignment deal in a A class suburb. Learned invaluable skills on creative disposition and more effective negotiation skills on acquisition.

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

I found this deal on facebook market place, I negotiated with the seller offering him just $5,000.00 more than another buyer but I helped him understand that he had no obligation to the other buyer and that $5000.00 would help them cover all his closing costs and a large portion of his probate attorney fees.

How did you finance this deal?

The overseas buyers financed this deal with hard money

How did you add value to the deal?

The project plans are to gut the property, completely rehab and expand it from 1400 sq ft to 2,300 sq ft

What was the outcome?

$37,000.00 Assignment Fee after closing costs JV

Lessons learned? Challenges?

Working with individuals in probate (and lawyers) can be burdensome on the seller. I could have provided more value and made the process more fluid had I gotten on calls with his lawyer immediately to guide them through the closing process.