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My last 4 wholesale deals!

Posted by: Nate-WI
Posted on : 3/13/2008 8:13:07 AM

Hi gang,

I wanted to share with you what we have been up to the last month or so. Its been busy to say the least! I'll try and give you some solid details.

Deal #1. Here are the quick numbers.
PP-46.5K
Repairs 10K
Sold for 55K
ARV of 80-85K
Profit of 7K

Got an accepted offer on a HUD property. Started the marketing machine the VERY next day (don't wait folks). Within 2 weeks we had it sold to O-O's. We did a double close with them and their local bank. I bought it at 1pm and sold it at 2pm. Homeowners were super happy. 1st time homebuyers. The buyers tried to get me down to 52.5K. I told them that this was a deal at 55K and I had other buyers who wanted but I was giving them first crack (which is true). From this home I got 2 more buyers who want me to find them something. My buyers agreed to the 55K. Good choice :-)

Deal #2. Here are the quick numbers.
PP-42K
Repairs 1K to make rent ready
Sold for 46K
ARV of 75K
Rents in the 650-675 range a month
Profit of 2.7K

While deal #1 was working towards closing I got an accepted offer on a REO. Started to market the house and......oh-oh.......no buyers! Had to close and then was going to put a rent to own in there. But wait......A lady from my REIA called me to talk about one of her houses when I simply mentioned out of the blue about this home. She said that her brother would probably want to buy something like that and he was a cash buyer. Sure enough he came in and closed in 10 days. For a LL this was an ideal property. For me I really disliked this property. Some basement movement was evident but I didn't like the city nor really the house. They why buy it, right? Well....I got over confident and thought it would be an easy sell and it took me a bit longer to sell it. I was EXTREMELY happy to sell this one. Bought and sold within 3 weeks. Quick numbers.

Deal #3. Here are the quick numbers
PP-43.5K
Repairs 10K
Sold for 56K
ARV of 90K
Profit 10.5K

During deal #2 I saw a very big ranch REO that took a 30K price drop. It went from 79.9K to 49.9K. Now this was in a city that I had never bought anything in and really had no idea what the market was like nor what was moving in that city. Here is what I knew.......that no where could you buy this kinda ranch, in this good of shape (just looking to the pics on the listing), for the price they were asking. The price drop hit in the early am and my realtor and I were out there right away. Literally dropped everything and took off. We liked what we saw and decided to go after it.

We started marketing right away and had quite a bit of interest. We found a couple who had ZERO credit but absolutely loved the house and our price (heard this one before guys and gals? :-). They wanted to do a rent to own and I said we had to much interest in the property and that we were looking to sell only. Then.......good ol' Mom stepped in. She decided to buy the home for them. Gotta love Mom's :-) When the price hit 49.9K we offered them 43.5K with a 1.5K deposit. They didn't even counter us! They just took it. My kinda bank :-) Mom used a local bank for financing. We bought it and sold it within 10 days.

Deal #4. Here are the quick numbers.
PP-51K
Repairs 20K
Sold for 60K
ARV of 90-96K
Profit of 6K

Very interesting story on this one. I worked with these buyers on a SS about a year ago. Wells wouldn't budge on their price. I was offering 60K for it and they told me no can do with their balance of 79K. So I watched for it as an REO and it came out at 79.9K. Then it went down to 73.9K. Then it went to 51.8K. We put an offer in of 51K and it was immediately accepted. Go figure! Got a better deal with it as a REO than the SS.

We bought this home at the end of Dec. We had a TON of interest but the repairs were pretty extensive, nothing structural wise but LOTS of cosmetics. We found a lady who had a Mr. Fix It boyfriend who really liked the area and the home itself. We are closing tomorrow at 4:30pm. I have the pre-lim hud and it looks like I will net (after all my expenses) about 6K. Not a homerun its 6K that I didn't have :-)

So all together over the past 5 weeks or so were in the 26K range for profit. I know there are many others on this board making way more than us and doing much better profit for deal margins. My point of the post is for folks who try and hit the home run all the time whether they are just starting out or even a seasoned investor. Were just a small Ma and Pa shop with Jenni and I. These little deals will add up folks so if you have the chance to make some quick money take and live to fight another day. Out of all these deals my best deal was #2. I got out of a house I didn't like, a city that I really don't like, and I didn't LOSE any money. If you have any questions fire away and I will try and answer them as best as possible. Hope this helps some others on this board to stay motivated and focused that real estate does really work if you apply yourself, take action, and reap the rewards,

Nate-WI