Single-family residence other investment in Oakland.
Purchase price: $300,000
Sale price: $375,000
We went to arbitration with the seller after they had sellers remorse. Judge helped rule in our favor to earn a buyout from the seller to us.
What made you interested in investing in this type of deal?
It was initially to be a flip or wholesale opportunity. When the date came for the seller to close, they sent over a letter of cancellation through the realtor. ( we used and paid for a realtor to handle the contracts. Also should note that I have held a real estate license over 15 years.) We had 3 people interested to either money partner or wholesale off to.
How did you find this deal and how did you negotiate it?
Referred to us by a realtor who knew that we had experience in flipping and wholesaling. Also knew we were willing to pay his FULL commission to close the deal.
How did you finance this deal?
We just needed the earnest money deposit, which we did get back. We also needed to show up to the arbitration. No other money down.
How did you add value to the deal?
WE offered to loan money to seller initially to fix and flip. We offered to show them how they could do it on their own. When we entered into contract it was understood that they could have done it on their own and we offered transparency throughout the deal.
Our profit was the buyout that they paid US , to cancel the contract.
What was the outcome?
When they canceled, we went to arbitration, as per the residential purchase agreement. they wanted to pay us nothing and at the end of the day we made a profit.
Lessons learned? Challenges?
Focus on the goal that we are in it for profit. Focus on the follow up. As a partnership, we need to have a common goal of when we need to walk away and when to refer back to each other during tense moments.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, the realtor is an experienced broker. Experienced in investors. Experienced with wholesaling. Experienced in flipping. Always know who your partners are going to be. Those who are strong in their skillset.
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