First Wholesale Deal! Great experience learned a lot.
Investment Info:
Townhouse wholesale investment in Baltimore.
Purchase price: $10,000
Cash invested: $5,000
Sale price: $45,000
This was our first wholesale deal!
What made you interested in investing in this type of deal?
We had other properties that we owned as rentals in the area.
How did you find this deal and how did you negotiate it?
We would drive for dollars in the area where we currently had rentals. This house had lots of deferred maintenance on the outside, so we stopped and starting looking. My wife, who loves talking to strangers, struck up a conversation with a neighbor on the block. He told her that no one has been in that house for 6 years and that the neighborhood did what it could by mowing the grass.
How did you finance this deal?
We used a family friend's money and paid him interest each month.
How did you add value to the deal?
We sold the house as-is to a flipper.
What was the outcome?
We made $30K on the property after paying interest on the loan and carrying cost.
Lessons learned? Challenges?
I read an article on negotiation, and it said never reveal what you are willing to pay for a property first. I asked the seller what she was willing to sell the property for, and I was shocked! She gave me her number, and we got that house under contract the next day!