Deal #4 – First Wholesale (kind of) SFR

Overview:

Closed 16 December 2019

This was my first (kind of) wholesale deal. I say it that way because I didn’t actually get this deal under contract. The seller was SO motivated that I didn’t have a chance to. It’s a funny story actually. The cold caller set the appointment and built really good rapport with the seller, which is the key to any direct to seller deal. I went on the appointment, which was really more of an inspection because the owner didn’t live there and I just went to take the pictures, give my report on the area, provide my estimation on the rehab, and analysis of the deal. In the midst of that work the seller called the cold caller back and said they wanted to sell as soon as possible and basically told her that they would take $9k for it. So she agreed right there and sent the contract. The funny part is that our maximum allowable offer (MAO) was $15k so we got it for what we thought was a really good price and for much less work than we anticipated. So I took an hour out of my day to drive there and take pictures. For my $500 wholesale fee on this one, the return on my time and effort was well worth it.

The Numbers:

MAO: $15k

Purchase: $9k

Wholesale Price: $23k

My Wholesale Fee: $500. Really the cold caller did all of the work on this one. I just drove to the property and took pictures so I was fine with collecting a small fee.

Lessons Learned:

  • Give credit where it’s due – The Caller did the work so she deserved the lion’s share of the wholesale fee. That was an easy decision to make for me.
  • Make the offer – I didn’t think this deal would pan out, but it’s a numbers game. It worked.
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