Accidental Wholesale! Deal Highlight

[Ryan Williams]

I wanted to share the story of my latest deal. 

I bought this property with a partner and we were planning on flipping it and putting it back on the market. Initially, it had gone under contract after 1 day on the market and we had not been able to check it out. A few weeks later we saw it came back on market, we checked it out and made a quick offer to land it $25k under list price. We closed at $1,275,000 and I put my commission back into the deal. All in after closing/holding costs we were all in at about $1,270,000. We were getting vendors lined up a couple days after closing and I got a call...

"Hi, we saw that you closed on this property, we were the ones that had it under contract before. We had intentions to buy the neighboring properties and build an apartment complex. One of the neighbors told us they had no intentions of selling soon so we backed out of the deal. After you had it under contract the neighbor came back to us and made us an offer, and we are under contract. Now you guys are the only missing piece, what would you sell it for?"

This was a complete surprise out of left field, so I threw out a big number - close to our best case scenario flip profit to see if they would bite. After some back and forth the price came down but they offered us $1,400,000 cash and a quick close. We held our breath to see if any shenanigans would happen during the contract period but everything went smooth and we closed yesterday! This would have been a great flip deal, but it would have been 4-6 months of work and have a degree of risk. My partner has been doing real estate for 15 years and he said this was the easiest deal he's ever done! haha $130k profit in two weeks with no work on our end. I could get used to that!

Has anyone had a similar experience?