Investment Info:
Single-family residence wholesale investment in Louisville.
Purchase price: $47,000
Sale price: $52,500
Sent owner a postcard through DealMachine. The owner called me while I was skiing at Vail in Colorado and told me he received my postcard and wanted to sell. I set an appointment and locked up the deal the same day. Wholesaled the property in less than 30 days through networking at my local REIA. This was my first wholesale deal and was an amazing learning experience!
What made you interested in investing in this type of deal?
I was doing a flip in the area and would drive for dollars through the neighborhood while my contractors were working. I knew this area had potential for flippers and landlords.
How did you find this deal and how did you negotiate it?
I found this deal by driving for dollars and sending the owner postcards. I negotiated the deal by knowing what the property would be worth all fixed up and realizing what I would need to lock it up for so that I could make a profit as well as my end buyer/investor. Win-Win-Win!
How did you finance this deal?
I had no money into this deal other than my time and effort to have the opportunity.
How did you add value to the deal?
I marketed this deal as a great flip by showing comps and also as a great BRRRR by showing rental comps from Rentometer.
What was the outcome?
The seller doubled his money and walked away from a distressed property, I completed my first wholesale deal and my end investor fixed the house up and is now renting the property out with a nice chunk of cashflow every month. Everybody in this transaction won and it is what I strive to do on every deal.
Lessons learned? Challenges?
The biggest lesson I learned from this deal was to keep be persistent and consistent. I had left my full-time job 3 months prior and was driving uber/lyft just to pay my living expenses. Most people would have given up after the first month of not having success but I was determined to be a full-time real estate investor so I made sacrifices and pushed through the tough times to get my first wholesale deal. It came at a perfect time and allowed me to invest into my marketing for more deals.
