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! 🙂
[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 The house is completely outdated.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.
|Purchase Date:||September 29, 2011|
|Settlement Fees:||$1,296 (title policy, closing fee, insurance, loan fee)|
|Resale Date:||October 28, 2011|
|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.
Next: Follow Along As I Open Up My House Flipping Business
Niiiiiiice! Where did the lead come from??
Man. I don’t know why I always forget to put that. This one came from my website.
Seems like you get a great deal of leads from your buying website. Care to share the url and what you do to drive leads there?
The site is DannyBuysHouses.com.
I use pay per click and put the URL on other marketing.
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?
It was sitting for a little over a week because I was busy moving and intended on rehabbing it. The first person to see it bought it. No hassles. Yes, I was asking $87k and got it. We negotiated some closing costs, but not price.
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).
The form on the website for investor information has not brought in as many as I would like. The whole time it has been available I have probably only received about 20.
The faster and better way to meet them is to check the MLS for recently sold fixer uppers that were bought with cash and visit the house and see if they are being worked on, call bandit signs, call For Rent signs, call other ads from other investors and just talk to them. Use your experience as a landlord to find other landlords that want to buy houses at a discount. In my experience, landlords typically pay more for houses than flippers.
Glad to see you are going to blog about your experiences. I will be following along.
Congrats! Great Work
Very nice… personally, I think the investor bought it for the pencil sharpener!
Exactly. I thought about taking that but felt it would be what was needed to close the deal. 🙂
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.
Ha! That’s what I say to them and I am glad they all believe it. Less competition!
Next week’s post should be pretty interesting for you then. 🙂
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!
Honestly, it can be hard and should be hard to make these offers. If you don’t feel like it is hard to make them you are most likely offering too much.
I just tell them politely that I can only pay x amount to make it work for me as an investment. When I make an offer they can count on me to close and within the time they want it closed within. They can go to sleep that night knowing that it is taken care of. This means a lot to people. I don’t word it like that all the time and sometimes don’t even mention that. You just have to develop your own way of talking with sellers that is comfortable to both you and them.
I don’t usually give several options. Sometimes that can just confuse sellers and make it hard for them to decide.
Great post! Have you done a post on how you find (and buy) all your properties so cheaply?
That’s sort of what the whole blog is about.
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?
We use a title company to handle the details and close the transactions.
Once again Dan, another Smoking Red Hot Deal (Hence the Red Rum Room). I love reading you blogs. Keep’em coming!!
Will do. Thanks.
That room had a strong smokey odor as well so it is funny that you mentioned it being a ‘Smoking’ deal. 🙂
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