My Second Wholesale Deal!

[Kyle Geoghagan]

Investment Info:

Single-family residence wholesale investment in Tallahassee.

Purchase price: $53,000
Sale price: $70,000

After graduating from FSU in 2022, I found my second deal using BatchLeads. A California investor had bought the property at a tax auction but couldn’t take on the rehab. We went under contract at $53,000. After failed buyers, I secured a family loan, closed, and became the owner. I sold it to a woman with a renovation loan and closed in November 2022.

What made you interested in investing in this type of deal?

It was all I knew how to do at the time. It was only my second deal and I did not really know anything about real estate. I am the kind of person to jump right into things and learn as I go.

How did you find this deal and how did you negotiate it?

I found it texting using BatchLeads. I negotiated over the phone, text, and email with the seller who lived in California.

How did you finance this deal?

It was originally supposed to be a wholesale deal where I never take ownership and only have my $100 EMD invested. Instead, I had to get a loan from a family member to purchase the property after my buyer flaked on me.

How did you add value to the deal?

First, I found the property which was going to rot away for the next few years while the guy from California worked on other projects. Secondly, I had to (literally) chop away literal trees in the driveway! That is how overgrown it had become. There way no way to bring a car into the property as there was no driveway! Surely just chopping some trees is not worth $12k. The real (and biggest) value I brought was connecting a seller in need with a willing flipper to bring life back to this property

What was the outcome?

The flipper got a cash flowing rental!

Lessons learned? Challenges?

Learn to do your numbers first. I almost got stuck with this thing because I knew nothing at the time and it was going to cost way more to fix up than I had initially anticipated.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

N/A