I JUST DID MY FIRST WHOLESALE

[Jerry W.]

I have been doing real estate on the side for quite a few years. I have allways been a buy and hold. I have fixed up a few houses to rent as that is the only way I can find a house cheap enough to get a decent rate of return. )( A 100K house here rents for about 800$ a month) I finally decided to try a flip house. After looking for months I found an absolutely trashed property with a 1500 square foot house. It also had a very small 2nd house of about 500 square foot. The property needed a new heating unit from scratch, it needed windows, doors, sub floors, electrical work, plumbing, siding, bathroom and kitchen redo, etc. The good note was the 2nd house was able to be fixed up pretty cheap and would cover the monthly mortgage payment. I estimated 23K$ in materials, and one year to do the work. My end goal was to have the large house ready to sale in 1 year, and I estimated the final sale value to be about 85K$. With my purcahse price being just under 40K$ I was hoping for a decent return and still to retain the small house. Before I could close another real estate buyer approached me and tried to get me to withdraw my singed purchase agreement but ultimately agreed to buy the property from me for 50K$. After 4 extensions from the Sellers I finally bought the property and just today I resold it for 50K. My only costs were 75$ for my half of the closing agent, my loan origination fees, one week of interest, and title insurance. I warned the bank and title company of my plan to resale the property, and both were wonderful to work with. I cleared over 10K after all expenses. For the first time my real estate net exceeded my regular paycheck. I allways considered wholesaling as the most difficult form of real estate investing. You have to find a deal so good you can resale it to another real estate investor allmost immediatelyand still make money. Thanks to reading on bigger pockets I was prepared to jump on the deal when the chance arose. The new buyer still got a great deal on her first buy and rent property. I was able to give her advice on what to look for and my plans for a rehab. I also told her about BP and she is thrilled with it. I hope BP will help her realize income from real estate investing and give her the skills to become successful at it. Thanks to everyone who posted for me to read and inspire me to try my first flip house.