My 2nd Real Estate Investing Wholesale Deal!

I went to look at a house in a neighborhood that was on the MLS.  It wasn’t a deal.  I headed home.  On my way out of town I stuck a hand-written ”We Buy Houses” sign in the ground.  An hour later my phone rings.  This guy wants to sell his house for $10k on the street that I was just on.  I know my values (*hint*) and I immediately know that a landlord will pay $30-40k for this deal, depending on repairs, etc. I looked at the house within the hour (*hint*).  It wasn’t in terrible condition.  It only needed $5k or so in cosmetic repairs.  I got him to sign on the dotted line.  This deal took twists and turns…

This property had some tough title defects and most people would have given up on this deal.

There was a previous closing (via a kitchen table of sorts) that had incorrect documents and there was also a large lien on the property.  We had to track down the previous owner of the property and have him dig up his original files (which he luckily had).  We also crossed our fingers and hoped that the personal lien could be negotiated and discounted.  It was.  They took 40% of the original amount owed.  Why you may ask?  Well, they knew that the guy was going to come across some money by selling the property.  He hadn’t paid them a dime in the last 5 years.  If they didn’t settle now, were they ever going to get paid?  I think they made a smart move. There are 2 tips to take away from this deal: 1) Always close at a title company and get title insurance. 2) Liens that have been sitting unpaid for a long period of time that are with a collections company can most likely be negotiated to 50% or less of the amount owed.

After working out the issues, we sold the property for $35k to an investor and profited $18k.

We split the profit.  Here’s my half.

This is the most that I have made for a wholesale deal, and as of this writing is the largest check that I’ve ever had in my possession.

____________________________________________ Educational Tip: If you are new to wholesaling, it is a niche form of real estate investing where you find a great deal, tie it up with a contract, and sell it to an end buyer (typically the same day) for a profit. Yes, there are a lot of moving parts that go into this process and you first need some basic education. But you don’t need every course on the market and once you have the basics down, it’s time for you to take action!

4 potential sources for you to pick from: 1) Google ‘how to wholesale houses’ – it’s Free and you can get a basic idea. 2) An cheap but informative eBook 3) An inexpensive course by the master, Ron LeGrand, Fast Cash Generator 4) A more expensive but thorough course by the lengendary Steve Cook, Wholesaling for Quick Cash