Wholesaling For Fast Cash - The Audi House Wholesale

Audi House Wholesale

Danny Johnson / 22 comments

The Audi house has been wholesaled. Bought it – check. Didn’t do any work to it – check. Sold it cash – check. Got a check – check. You can never have too many checks.

This one was named the Audi house only because the seller drove a nice Audi that we talked about for a while. Just couldn’t come up with any other name for it.

No high dollar crazy check picture on this one because we received a huge loan overage at the closing when we bought it because I had intended to rehab it. We actually had to bring money to the table to close it when we sold it. Really sort of weird paying money at closing when selling a house considering what we ended up making on this wholesale (don’t worry it’s coming…).

A lot of houses were bought in a short period of time and this one needed more work than the others so I decided to tell another investor about it when he called looking for a deal. He immediately went by the house and told me he wanted it. We quickly signed a contract and closed just under two weeks later.

I just couldn’t pass up a quick $19,011 in profit! πŸ™‚

House Details

[Lead Source: Website]

This is a 4 bedroom, 2.5 bathroom, 2200sf house that was built in 1968. The house is completely outdated. I would have completely remodeled the kitchen, bathrooms, flooring, light fixtures, doors and painted everything. The house also needed some leveling. It is a single-story house in a good neighborhood. The house was also filled with the previous owners belongings (a ton of stuff) and we sold it just the way we bought it, with everything still in it.

The Numbers

Purchase Date:September 29, 2011
Purchase Price:$65,000
Settlement Fees:$1,296 (title policy, closing fee, insurance, loan fee)
Resale Date:October 28, 2011
Resale Price:$87,000
Settlement Fees:$1,693 (closing fee, half of title policy, taxes, loan interest)

Not bad for just buying and selling. I’d rather do these all day long than rehab and wait to sell.

The ARV for this house is about $160,000. I estimated the repairs at about $25k. 70% of $160k is $112k. Subtract $25k in repairs and you have $87k which is what we sold it for. Obviously, when I bought the house I was being more conservative. I used 60% of the $160k ARV for my offer because I knew it was going to be more time and work. My offer was below MAO to allow for some negotiating and the seller took it after some consideration (2 days). I was pretty sure he wasn’t shopping it as he lived outside of town and mentioned being busy and not wanting to commute in to town to show the place.

Wholesaled Audi House Before AND After Pictures

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22 awesome responses to “Audi House Wholesale”

  1. Pete on

    Niiiiiiice! Where did the lead come from??

  2. Erby on

    Hey Danny, that was a awesome wholesale! In those 29 days it took for you to sell it was it a hassle finding a buyer and did you get full asking price or got the 87K after some negotiations?

  3. Don on

    That was a pretty good profit in a very short time.

    I see your web site has a place for investors to enter their information. How many investors have you found this way?

    Our local investment club has closed (and I was never a member). Occasionally I have some leads I can birddog but I don’t know any other investors. How do you find the other investors?

    I have now started my own blog. I am going to use some of the strategies you use here. In the past I have only bought rentals and I now have 13. I have never flipped a house – or even sold one. My flipping experience is limited but I know a lot about being a landlord.

    I am going to start by writing a lot about the adventures of being a landlord. I will detail all the properties I already have and document my new process as I go.

    I am new to WordPress and still learning about setting everything up. But I do have some content on the site.

    My blog is called The Real Estate Adventurer – http://realestateadventurer.com/ . If you get time, take a look at it and let me know what you think.

    (I have been having time out problems and I am not sure if it is the host or my network).


  4. Clement on

    Congrats! Great Work

  5. Nathan on

    Very nice… personally, I think the investor bought it for the pencil sharpener!

  6. Con on

    Congrats on the wholesale deal! I’ve talked to people who say a 19k wholesale deal is not possible in San Antonio. You’ve proved them wrong and made me a believer. I need to generate more leads!

    Thanks for providing this blog. Your transparency is refreshing.

  7. Earl on

    How did you present the offer so that the Seller accepted only 40% of ARV? (I would love to hear a recording of your presentation on that one!)

    Did you give him several options or just the straight cash offer? Thanks!

  8. jimmy on

    Great post! Have you done a post on how you find (and buy) all your properties so cheaply?

  9. Mike G on

    Nice. I’d love to make $19k on a quick wholesale! Maybe we’ll try that with our next house.

    Question for you: do you use a lawyer to handle the details of the transaction?

  10. Mike W. on

    Once again Dan, another Smoking Red Hot Deal (Hence the Red Rum Room). I love reading you blogs. Keep’em coming!!