Ive already done a few buy and holds, but today I took a wholesaler that I have bought a property with before to look at a potential birddog deal. He liked it and we put in an offer. Its an off the market home in an estate so i think we have a real shot at getting it. Im pretty stoked about it because I wouldn't be able to swing financing this project being that I have recently used my capitol on my last 2 deals. This is a way for me to keep a working relationship moving with a local wholesaler, expand into birddogging, and build my capitol for my next investment. I know being around investors on BiggerPockets for the past year played a role in helping me get this offer in today.
Fingers crossed that we get the deal!
@Blake C. - Nice job. Hopefully it comes together. How come you did not just put the property under contract yourself? Why bring in the other wholesaler and have him write the offer when you can just do it yourself and collect a bigger fee?
Im sure there is a better way to handle it, but I have pretty limited experience. Also, it was a friend oriented deal on bother sides. The wholesaler and flipper that I offered it to is a friend of mine from church. There is pretty of trust to not need to protect myself. Ive been on the other end of deals with him and I expect to do more.
I don't even know who the seller is. The seller (one who inherited the house) knows another very good friend of mine is a realtor. This realtor friend actually helped get me started investing and set me my first property. In the past she has had friends come to her ready to list a property thats pretty distressed and she will pitch it to investors like me for no commission before she lists it. Thats how I got my first deal. She called about this one to see if I wanted it. Ordinarily I would, but the timing was bad for me with respect to being able to finance it. I my eyes, the best option to me was just to make a few dollars birddogging and expanding my partnership with the wholesaler.
What i did was bring the wholesaler by to show the property. He gave me a number he wanted to offer. I added in my birddog fee and made a verbal offer through the realtor friend. If they accept, we will write up a contract. Ill get paid after closing. I might even buy it back from the buyer once he finishes the rehab. At this point, the deal might be sweeter because I wont have to oversee the rehab and theoretically, Ill be able to finance the rehab into the cost of the loan easier.
This deal won't work if it wasn't built on large amounts of trust. Im open to hearing about more professional ways to do this.
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