Investment Info:
Single-family residence wholesale investment.
Purchase price: $47,000
Cash invested: $7,000
Sale price: $85,000
This acquisition was especially sentimental to me because I have so many childhood memories on this street. I attended middle school here and spent many years growing up in the area. Just a year and a half ago, I wholesaled the house directly across the street from this property, making this deal even more meaningful.
I found this property while driving for dollars after leaving the local barbershop/garage shop 🤣. I noticed the house looked like it was being trashed out, so I immediately reached out to the owner. I couldn’t reach him at first, but I left a voicemail. A week later, the owner returned my call and expressed interest in selling. I met with him the next day and made an offer in the range of $40,000 to $50,000. We ultimately agreed on $47,000.
We closed the deal in just 10 days and resold the property for $85,000 shortly after. Interestingly, right after accepting that offer, another buyer reached out with an even higher bid. This taught us an important lesson: it might be time to bring on a dedicated dispositions specialist to ensure we maximize our spreads on every deal. Overall, this was a fantastic takedown deal and a great learning experience!
What made you interested in investing in this type of deal?
House was distressed
How did you find this deal and how did you negotiate it?
Driving for dollars cold the seller over the phone made an appointment to go see the house
How did you finance this deal?
Hard money lender
How did you add value to the deal?
purchased it deeply discounted
What was the outcome?
$28,000 profit
Lessons learned? Challenges?
always allow the market to tell you how much a home is worth instead of going with what you think a house is worth
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
yes
