Ok. Here it is finally. The breakdown of the super secret historic house wholesale. The details of which I have repeatedly denied you. Wait no longer, here it is. We made just over……$50,000! The check above shows our proceeds from the final sale. We also received a check for over $8,000 when we bought it (loan overage for minor repairs we thought about doing).
This is a 4 bedroom, 2 bathroom, 2700sf house that was built in 1939. The house has a detached garage and mother-in-law suite that is a decent size. There is an inground pool and still plenty of space in the back yard.
Here’s a picture of the house:
|Purchase Date:||June 28, 2011|
|Settlement Fees:||$2,588 (title policy, closing fee, insurance, loan fee)|
|Resale Date:||July 15, 2011|
|Settlement Fees:||$1,600 (closing fee, half of title policy, taxes, loan interest)|
Now you can see why I held off on mentioning any particulars of this deal. Some investors don’t like to see someone making this much on a wholesale deal and I needed to make sure that my position was not known. This one was actually wholesaled to another wholesaler who had the end buyer. So I made this and my buyer made a wholesale fee (I don’t know how much and I don’t really care).
The ARV for this house is about $300,000. I estimated the repairs at about $60k if you watched your expenditures closely. We did not do a single thing to this house (with the exception of dumping a ton of shock in the pool to keep it from becoming a swamp). I did not really have a detailed breakdown of the costs, just a rough idea for rehab because I knew I was buying with some room. My intentions were to sell the house at $150k to another investor, As-Is if I could. If I couldn’t find a buyer quickly, I was going to try and sell FSBO at about $200,000. Remember the old saying, “One in the hand is worth two in the bush.”
There have been several occasions in the past where we could have sold a house quickly for a decent cash price as-is and opted to fix it and sell for more of a profit. Inevitably, we ended up making less than we would have had we just sold to the cash buyer. Take this to heart. Especially in this market.