All Forum Posts by: Layton Erickson

Hello,

My most recent wholesale deal is one that is pending. I got a call from a couple in Larimore. They wanted to sell their house so they could move to Grand Forks. I went out there and talked with them, it looked like a good deal because it was well taken care of except for the siding and inside was a bit out dated. They understood that as well and took that into consideration.

At first I wasn't interested in this deal because there was water coming in the foundation in the basement and foundation work is not something that usually turns out pretty profit wise. I wait a week and call them again, we discuss the foundation issue and it turns out that the city had a pipe burst or a main wasn't working correctly so the city came in and fixed the issue within a week. 

After that issue was fixed, I was definitely still interested in the property. We met the sellers again, agreed on a price and the seller's signed the contract. We extended closing a few months so they can have time to move their belongings to their new place. 

Hello, 

Here is another deal and this wasn't your typical wholesale deal. I received a call from a seller in their mid 80's in October. I along with my partner toured the property, (my partner is an experienced flipper that basically buys the deals from me). The seller wanted to sell the place so they could 1031 exchange the proceeds from the deal tax free into a lake home in Bemidji. It was a triplex with a basement apartment. Everything about the place was old but it was a rental so it would be just fine for the rental market as long as the windows, siding and a little interior work was done.

The seller told us what the rent was and we thought the price he wanted was a great deal! It took several months of staying in touch with the seller until they identified their property in Bemidji they wanted. Then we would be able to buy the property after that. 

We did run into a few bumps in the road though. When my partner closed on the property, we found out that the seller lied about what he was getting for rent, expected life on capital expenditures and I didn't get my wholesale fee until mid March because of the way the contract was set up. 

I learned that you need to put everything in writing because even the people that seem the most trustworthy can still be unethical. Also I learned that you need to verify the #'s even if the seller tells you his #'s.. you need to run your own #'s every time, no exceptions. 

Hello, 

Here is another wholesale deal I did recently that I wanted to share. 

This one was more complex as the seller was particular about how they wanted to sell the property. 

The seller called me about wanting to sell their rental property. This was one of the few they still owned and they wanted to get rid of the day-to-day headache of owning it but didn't want to sell at a large discount. 

Because they didn't want to sell at a discount like a typical flip and their property was in good condition, we negotiated a lease-option. 
I facilitated the transaction instead of being the lessee. The seller got their monthly payments, the price they wanted and was rid of the headaches of owning rentals. The buyer purchased a property that was in good condition, had a long-term tenant and didn't have to put the typical 20-25% down for an investment property. Another win-win-win!

Hello,

I want to update on one of my recent wholesale deals. This one was a pretty simple wholesale deal. This property was a duplex up top, with a possibility for a fourplex as the basement units were framed but in rough shape. 

At first, I thought it was a good wholesale deal! The owner wanted what they paid for the property 15 years ago and the upstairs was in decent shape when I walked through it. With a price in mind, I called my contractor/investor I knew and we then walked the property again because I wanted a second opinion.

He did not agree with my price. We walked through it and the upstairs units were fine and basically rent ready. The downstairs was terrible. There had been signs that the basement was moist/had been flooding for at least a year or two if not longer. Looking at every other house on the block, I saw that each of them had multiple sump pump hoses coming out of their basements, while this property didn't have one. 

With that in mind, I renegotiated with the seller and we decided on a price that the buyer felt comfortable with, (the buyer being my contractor that walked the property with me). His plan was to spend the money to convert the property to a four-plex. We closed a few weeks ago and it worked out for all parties as the seller got rid of a property that was causing them headaches, the buyer got a cash-flowing property from day one that will cash flow as they convert it and I got a check for facilitating it.

@Seth Trost Sure, I will PM you.

@Adam Zach Glad to hear you're doing well! It looks like your link is broken/removed?

Anyone in Grand Forks, North Dakota that would like to chat about real estate. I am game! I am just starting a direct mail campaign for the area.