Worst property we worked on to-date

[Jeremy Beland]

One of the worst conditions we've bought properties in recently.

The seller’s sister reached out to us, desperate for help. The owner had been living in these conditions for a long time due to mental health issues.

It was heartbreaking to see.

We agreed on a price and closed very quickly to provide relief. This ended up being a wholetail where we physically closed on the property ourselves and relisted it on the MLS after bringing up its market value. A bit of a more advanced exit strategy, but one that can be extremely profitable when implemented correctly.

We spent $18k to clean out the place and then we turned around and made $40k after cleaning costs, closing costs, and commissions. It took 2 weeks to list and another 2 weeks to close.

Pre-cleaning it was not in any condition to be sold to on the MLS and cash buyers would've wanted a heavy discount for the extremely bad condition of the property. Mostly because it was so thick with stuff that you really couldn't even walk through the property to make accurate project estimates. In our experience, buyers always add 2-3x the actual removal cost.

I love wholetailing because we get the speed of wholesaling and the margin of flipping by doing a little bit of both.

You just need to be able to get the liquidity to support the transaction, which we do through private lending.

We always use other people's money to make our own money.