The Front Yard Stink house has been wholesaled. Another $20,000 wholesale profit. 🙂
My intentions with this one were to fix it and sell it with owner financing.
You can see the before pictures and original numbers in this post.
While working on several other rehabs, I decided (with some prodding from the wife) to put a sign in the front yard and an ad in the paper to sell this one as-is. I did already have it cleaned out and a new roof put on it. It didn’t take long to sell (3 days maybe). The price I had on it was $55,000 for a cash, as-is sale. I only had to show it twice.
They called to inquire about the house and I quickly wanted to make sure they understood that the price was for CASH and that I would need to see a bank statement or other proof of funds before signing a contract. They said they couldn’t do that because it wasn’t in a bank. ??? I asked where it was and she told me they had the actual cash.
This was a first for me. They saw the house and talked it over for about 10 minutes while I sat in my car. Their decision had been made, they wanted it and were willing to close in 3 days (what I asked for since I was giving them a discount off my asking price). We went to a restaurant and signed the contract.
After signing, I asked if they had won the lottery. The husband then informed me that he had been shot. He works as a security guard but was not on duty. He went to visit his brother who works at a pawn shop. His wife and daughter came with him. While at the pawn shop, a robber entered the store and was ordering everyone to the floor. The guy’s daughter was very scared and just froze. The guy wasn’t about to allow this scum to point a gun at his daughter. He pulled his piece and opened up on the guy. Fired 8 times at the robber as the robber tried to take cover. Hit him 5 times. The robber hit the guy once. He still was of the right mind to run to the front door to make sure the robber didn’t have backup that would come and try to help him, then held him down until the police came.
The pawn shop settled with him for his pain and suffering.
What a hero. Best buyer I’ve ever had.
There was a slight issue with the fact that most title companies will not accept actual cash. They require a cashier’s check or wire. The buyers did not want to open a bank account, as they did not trust banks. They also did not want to pay for a cashier’s check.
The issue with the title companies not accepting cash has to do with them not knowing where the cash came from. In the end, the buyers ended up opening a bank account and getting a cashier’s check.
| Purchase Date: | September 21, 2011 |
| Purchase Price: | $19,000 |
| Settlement Fees: | $1,271 (title policy, closing fee, insurance) |
| Holding Costs: | $79.17 |
| Property Taxes: | $1,615 (agreed to pay 2011 taxes when I bought) |
| Repairs: | $2,950 |
| Resale Date: | November 1, 2011 |
| Resale Price: | $45,000 |
| Settlement Fees: | $328 (closing fee, document prep) |
| Profit: | $19,756 |
Comments (16)
What kind of sign? Gotta Love the don’t trust banks folks. I work with one.
It was just a white FSBO sign. The kind they sell at home depot. I just wrote “55k Cash As-Is” all over it and my phone number. I put a directional sign off a busy road as well. The buyers called from the ad in the paper though. The ad had the general location in town, beds baths, 55k cash only, needs work and the address.
It’s crazy. I’m sure they had the cash in the car while we were signing the contract.
Awesome post Danny. Seems that since your original intention was to rehab your last 2 wholesale deals, your profits have been pretty good.
Yes they have. I hope to do some more of these of course. 🙂
Quite a story and I love every minute of it. Keep up the good work!
Thanks.
Danny
You weren’t kidding about beating last week’s wholesale profit. Congrats! Nice story.
Con
Thanks. I’m really enjoying these wholesales lately.
LOVE IT!!!LOL
They said they couldn’t do that because it wasn’t in a bank. ???
Hilarious! Great job on another slam dunk! Thanks for sharing this great info with us all!
Thanks, Ed.
My guess is that they don’t want any trouble with the source of the cash. Someone has to show where it came from (was not drug money, etc.).
what a great story! I love stuff like this, makes life interesting. I remember reading about that incident in the news last summer.
I had the same cash problem with a home/title company once. they dont like cash – BIZZARRE
Thanks, John. The stories really do show just how interesting this business really is. Never a dull day!
Do you ever wholesale deals you get off the MLS? Do you ever purchase anything from the MLS?
Yes and yes. Not as much as I used to. About 2 years ago I was buying mostly REOs from the MLS. As other investors became more confident that it was still safe to flip houses, the competition increased to the point where it took too much effort to get a deal. Deals can still be had, but it now requires more work than marketing directly to homeowners. At least here in San Antonio.
Wow. That’s quite the story. Makes me leary about entering pawn shops from here on out. But great deal none-the-less
[…] You can read all about it here (very interesting story) and see the wholesale flip numbers. […]