Check For The Historic Wholesale House Profit

Historic House Wholesale

Danny Johnson / 29 comments

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).

House Details

[Source: Probates]

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:

Front Picture Of The Historic Wholesale House

You can view more pictures of the house here.

The Numbers

Purchase Date:June 28, 2011
Purchase Price:$95,000
Settlement Fees:$2,588 (title policy, closing fee, insurance, loan fee)
Resale Date:July 15, 2011
Resale Price:$150,000
Settlement Fees:$1,600 (closing fee, half of title policy, taxes, loan interest)
Profit:$50,812🙂

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.

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29 awesome responses to “Historic House Wholesale”

  1. Brooks on

    Danny, this is MOTIVATING! My biggest wholesale deal yet is $19,000 and I thought I was a ‘Baller’ – man, I’ve got a lot of learning to do 😉

  2. Terry on

    Danny,

    When you wholesale do you purchase the property outright or tie it up with some kind of contract (do an assignment of sorts)?

  3. Steven on

    thats just crazy, man congrats!! I’m always thinking that if a house can be bought extremely cheap and then wholesaled then why hasn’t it been done so already. And that’s what keeps me from taking action more than I do.

    I’ve put out very nice professional bandit signs in high traffic areas and run ads on craigslist and get hardly an response. It’s has gotten discouraging to say the least.

  4. Mikey on

    Awesome! My biggest *retail* profit (to an end buyer) was $50,000 — wholesaling it is awesome, man! Which lead source did this come from again?

  5. Ryan O. on

    Danny,

    Truly inspiring! This goes to show that your persistance pays off. Many folks would have given up after only a few weeks and not much success.

    Keep it up and thanks again for sharing your story.

  6. Pete on

    That’s big time!! Where did the lead come from again?

  7. Pete on

    Also, do you mind sharing how you got that house so cheap? The new people could learn from your negotiating skillz…..or did you just make your offer and stand firm?

  8. Pete on

    Danny,
    Did you use a private lender to close on this deal? If so, how did you pay him? A % of the deal?

  9. Pete on

    Also, if you could, give us an idea what you are going to do with the profit? I think it would help the new investors out…..show them how you put money back into the business instead of blowing it all on some “consumer” item. But then again, you should always celebrate when you close a deal….especially a $50k wholesale deal!!
    It’s good for the psyche!

  10. Tom Tarrant on

    Hell yea Big Danny! That’s a great take down. Those are the great ones that you can only get from being in the trenches every day. Congrats, you deserve it! San Antonio is a gold mine.

  11. Pete on

    Danny,
    Where in San Antonio is this property located?

  12. Bailey on

    SCHWEET! Congrats, Danny!

  13. Ralph on

    Hey Danny,
    I wanted to know if you could give us a rough estimate on how much you spend on marketing per year? Thanks again..