Sundown Wholesale Deal Review

We just closed a wholesale deal that has been a long time coming! I first got a call in March off of our website, and the seller wanted us to come look at her mother-in-law's house who had recently passed away. They were just starting the process of getting the estate in order, but I went to go see the house and give them a bid on what we could buy it for. At the time, they were trying to figure out how much they needed to get out of the house to pay claims against the estate. Ended up keeping in contact, checking in once a month or so, and finally at the beginning of September, the seller was fed up with dealing with the property and was ready to sell! 

The closing took awhile as there were tax suits to pay off, as well as a Medicaid claim that had to be resolved. In the meantime, I partnered with a local wholesaler who has an extensive buyers list and specializes in finding non-investor buyers (i.e. owner occupants willing to pay cash and fix up themselves). I think it took all of 2 days to get an assignment contract signed, and then a long 4 weeks to close.

Here are the numbers:

3/1/1, 1008 sqft, brick ranch, slab foundation, built 1955

Contract Sales Price - $40,000
Estimated Repairs - $30-40,000 (needed extensive foundation repairs)
Estimated ARV - $115,000
Assignment Price - $63,000 (would have been low-$50's if it had been an investor buyer)

Total Deal Profit - $23,000
Other Wholesaler's Fee - $8,000

My Profit - $15,000

The deal may have taken a long time, but for $15,000 and maybe 10 actual hours of work, I call that a great return - and the first deal from our website!