$20,000 Wholesale Completed, getting creative to make it happen.

[Tim G.]

This one is pretty interesting, great example of just going for it.

I'm active on Facebook and a new wholesaler had been speaking with me for some time on there. I had been offering guidance, encouragement and accountability for a few months with the offer of splitting any deal 50/50 if they needed help.

He had the chance to lock up a condo at a price that wasn't that great, but after six months of trying I thought it would be good for him to get to the next stage and learn a little, and I thought it would sell. So I said go for it!

Here are the numbers.

3671 Boundary St. Unit 6 San Diego, Ca

ARV - $130-140k
Repairs - $10k (or leave as is for rental, very outdated)
Rents - $875
HOA - $300
Sold for - $110k

I knew this was a tight deal but the area is hot and I thought a buy and holder would take it on an appreciation play. I also knew that type of buyer needed a different way of reaching them, so I called the realtor who represented me on my four plex purchase and offered him 3% commission to bring me a buyer. He found a buyer in one day, the next we walked it. It was hilarious, me the property manager, my realtor friend and the buyer. Five minute walk, no inspections he took it.

So, me and Chris split the fee less the $3300 commission to the realtor and split closing costs as it was a tight deal and it seemed to please the buyer.

I learned he actually contacted another expert for advice and they had told him the deal was too tight to sell and until I said go for it he was going to pass. It's an interesting thing to think how much a random opinion can influence the outcome and I believe there is far too much fear of failure limiting endless deals as I write this.

Some really cool parts to this deal are there was a lot of trust involved and no greed. Being willing to split a deal to make it happen fast, bringing in a realtor to find a buyer. It was literally effortless and let me focus on a much larger deal. That alone was worth the $3300 and it was a great thank you to him for helping me on the four plex.

This deal broke almost every rule there is. 70% rule, 1% rule and the 2% rule but it still sold fast. So remember, don't look at deals as if you are going to buy them. It could cloud your view of it and make you walk from a quick and profitable deal.