The BEST wholesale deal I’ve ever seen by a newbie!

[Don Konipol]

Yes, this was the absolute BEST wholesale deal I’ve ever seen by a new “player”

Happened about 14 years ago.  I was involved in financing the end buyer

Completely new to wholesaling, she contacts me to set up financing BEFORE she even has a buyer.  Asks to meet with me, and the seller, so my curiosity is peaked

Turns out the subject property is an RV park, located in the county I live in. The seller is an attorney, who has had the park for sale with a nationwide commercial agency for 6 months, lowered price, etc., and hasn't had an offer. Says that he believes the agency is not marketing the property, except to place it on Loopnet. So the story goes that this young woman sees the property is for sale for 6 months, and calls the owner. I find out that she's decided to specialize in RV and MHP and has called about 75 statewide. Tells this attorney that if he allows her to wholesale the property, she will make calls to all potential buyers, advertise at REIAs, attend MHP and RV park conferences, and phone current MHP and RV park owners to see if they want an additional property. He agrees and they settle on a. Bottom line price of $2,375,000, $125k below listed price (nets seller the same since he won't have to pay brokerage commission. All marketing expenses are on her. She proceeds to cold call everyone and anyone, make presentation to REIAs ,etc. second week in she gets a contract at $2.6 million. How did she get $2.6 million? Well, first she had my financing for hard money loan lined up in first position at 60% LTV; second she lined up a 2nd lien lender for 20%. So she had 80% financing lined up with fairly easy qualifying. Second, she had two buyers so there was a little of a bidding war. These were buyers who were attracted by putting only $500k down rather than the $800-900 needed for institutional financing.
The deal did close; the wholesaler newbie walked away with $200,000!   I then offered to become her financial partner if she would find great deals, we did do a few profitable deals together, including a warehouse property we turned into retail/office/warehouse units.  After a couple of deals she told me she had enough capital so she no longer needed to share profits with me.  I wished her well, and she has sent me a number of loan leads through the years.  

BTW, she was NOT a graduate of some guru mentorship program; she read some basic real estate text books, attended REIA meetings, took a community college course on real date principles, and was willing to do the work that most people (my self included!) want to hire out to third party cold callers in Mumbai.