Single-family residence wholesale investment in Burien.
Purchase price: $350,000
Cash invested: $50,000
Sale price: $535,000
Wholesaler Joint Venture Deal with Wholesaler
Scope of work:
• Interior/exterior paint
• Like for like kitchen and bath upgrades
• Siding repair
• Removed converted garage
• Minor electrical work
• Upgraded main bathroom.
• Electrical/plumbing trim out/finish trim
How did you find this deal and how did you negotiate it?
We sourced this property through a local real estate wholesaler. He brought us the deal and we looked at purchasing off if for an assignment fee or we offered to purchase the property for a $20k fee or put the capital up, run the project and split the profit with them. We don’t do this on every deal but ones that are systematic we offer to wholesalers that want learn. Our partner @jccambria did an amazing job negotiating this deal during march of 2020 when the market was shaky.
How did you add value to the deal?
We kept it cosmetic to keep it affordable for our end buyer, we wanted our list price to appeal to the masses for affordability. Items like expanding the kitchen and opening walls and doing a full upgrade would have got us about $50k more in list price but would have taken 2x as long and another $30k in work.
What was the outcome?
This property was a win/win for all, the wholesaler made double then his assignment fee!
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Justin Cambra - RE Investor, @jccambra
@James Dainard nice looking house, thanks for sharing!
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