My $52,996.25 wholesale deal complete!

My $52,996.25 wholesale deal complete!

Wholesaler · Atlanta, GA · Member since 2012 · 243 posts · 103 votes

Hello all,

I finally have my own success story. 

I guess this year alone has been a bit of a success story but Ill spare you and only discuss my most recent success, a 50k wholesale deal. 

I have been working on this deal for about 3 months (mainly waiting on probate to finish). My attorney, who is awesome, had to find 12 people to sign off on the probate documents. We actually got this sone pretty quickly to my surprise, especially since none of them were receiving any of the proceeds form the sale. 

Probate finally finished and my buyer was already prepared to close. 

We ended up pushing the closing back 1 week because the current owners had not found a new home yet. Eventually I convinced the owners that it would be best to go ahead and close so that taxes wouldn't continue to eat away their profits. 

Once they agreed, I tried to make the process a very smooth transition. I paid for professional packers to help pack the house, I paid for movers to transport the items to storage, and I even paid for 1 month of storage. Oh and not to mention $250 so that their disabled brother could live with a friend for the month until they found a new home. 

I thought this was worth getting the deal done since they had no money and I was ready to get this deal done. 

The day before closing, which is when the movers came to pick up the items of the house, the owner calls me at 6pm, several hours after the movers have left and delivered the stuff to storage, and says the movers didn't get everything so they were in the house trying to pack all of these big items in to a car smh. 

I got really frustrated and decided to get off the phone and call my buyer, who I have a really solid relationship with. She said she would help with whatever I needed and immediately got a contractor out there to turn the gas off and unhook the gas line from the heater (one of the things the owner failed to mention she wanted until the last minute). Th contractor came the next morning on time and got it done quickly. 

Now for the next problem. I decided the best way to handle all of the large items that were left in the house was to call another moving company. I decided to go to the property myself and place tape on all items that would need to be placed on the truck, at this point there was no room for mistakes. 

Luckily for me, the week prior to this happening, I attended a commercial RE networking event and just so happened to meet the owner of a small moving company. I decided to call him at around 8pm. Surprisingly he answered and said he would be able to have a crew out to the house in the morning. This was really a life saver on such short notice. 

Fast forward to the next day (closing day) everything is going as planned, but the rain is slowing traffic down which made the movers a bit late. No worries, still keeping a cool head. They finally arrived and got the items out of the house pretty quickly. This time I made sure that I checked the entire house before the truck was cleared to head to storage. The owner confirmed that everything that was tagged had been taken. 

Sounds like its over right? Nope lol. 

We get to the storage unit and when I opened the unit, it was backed very unprofessionally by the movers from the day before, it was a huge until and the movers did not use the space to its highest capacity. 

The movers quickly let me know that rearranging was not in their job description. I agreed and ask them how much would they charge to rearrange the storage just enough to fit the new items in there. They answered $25/piece for the two of them. I replied "hows $50/piece" they said that will work and immediately got to work. They finished pretty quickly which I was happy about. The only thing I wasn't happy about was the fact that the guy tried to play me by asking for $75 a pice instead of $50. I immediately said no because 50 was more than fair. He agreed and that was the end of that. 

Without boring you with details, we successfully closed on the deal and I got my largest wholesale check to date for $52,996.25.

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Rental Property Investor · Arlington, TX · Member since 2012 · 788 posts · 640 votes
10y

@James Wise Why so negative?  Sellers always have a choice.  I don't think a gun was held to their head telling them to sign docs.  They could have easily called a Realtor but for some reason did not or maybe they did and did not want to go that route.  I applaude @Fitzgerald Hall for solving these folks real estate problem.

FYI - This is coming for a Realtor/Investor/Landlord 

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  • Brian ChadwickPro Member
    Investor · Richmond, VA · Member since 2015 · 26 posts · 3 votes
    10y

    Enjoyed the debate! Congratz @Fitzgerald Hall.

  • Wholesaler · Atlanta, GA · Member since 2012 · 243 posts · 103 votes
    10y

    @Rick Baggenstoss Yes, I have the amazing opportunity to build a real relationship with a builder who is bringing me in on the new construction and teach me the ropes, which is priceless to me. 

  • Wholesaler · Atlanta, GA · Member since 2012 · 243 posts · 103 votes
    10y

    Thanks everyone I really appreciate the support!

  • Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    10y
    Originally posted by @Rick Baggenstoss:

    @Fitzgerald Hall great deal and great work!  I think you should be very proud of what you were able to do for this family.  You seem to have great skills, urgency, and determination.  They were put to good use on this one.  

    Did you sell this property or do you still own some of it?  You know the other side of this story is that you sold the property for $50k+ less than retail value.  Were you a victim?  Of course not.  You too needed to get it done.  

    Well done!  

    This point gets lost or forgotten when we focus only on the "poor seller".  A wholesaler with transaction engineering skills but not enough cash to buy outright is in the same boat as the sellers with no cash to save the property from tax sale. When there is urgency to sell they have to work with the buyers that are willing to work with them.

    Back in the day I needed my buyers to bring cash to a double closing or pay an assignment fee in order to get paid.  I left tons of money on the table.  My buyers loved me back then.  Eventually I had enough cash to close and re-sell.  More orderly, more value add.  No fire sale.  That's when I started doing flat fee listings or using an agent, selling for max value. I don't leave the money on the table.....because I don't have to.  

  • Pelham, NC · Member since 2015 · 160 posts · 54 votes
    10y

    That's a great opportunity! I would love to learn the ropes of rehabbing/building from an experienced rehabber/builder. Watching on YouTube is okay, but it's not like being on site in-person learning the everyday ins-an-outs of the whole process.

    Fitz, you keep putting yourself in some great positions. Don't stop! It's inspiration and motivation to a lot of us. Keep making it happen!

  • Rental Property Investor · San Diego, CA · Member since 2015 · 9 posts · 1 vote
    10y

    Amazing job helping that family, you did bend over backwards and got them a little under 200k dollars for their property when they we're in fact going to get it taken and left with nothing but broken hopes and dreams. You're a good man for that and i'm glad you made 50k. In my opinion, that investor should have given you more than 50k for a deal like that, given that you went above and beyond what a normal broker would have done that was going to possibly net him 500k. Great job!!!

  • Specialist · Austin, TX · Member since 2014 · 109 posts · 95 votes
    10y

    I agree with @Rick H. solved their problems.

  • Investor · Redondo Beach, CA · Member since 2015 · 43 posts · 14 votes
    10y

    Thanks for posting your experience. I actually appreciate the detail. The ups and downs demonstrate that investing regardless of the vehicle (like wholesaling) used requires work and persistence.

    You could have stopped at several points in the process...you didn't.

    You prove the necessity of quality team...attorney pursuing all the necessary approvals.

    You show the need for planning and follow through.

    Many lessons learned and shared with this experience.  Congratulations.

  • Investor · hampton, VA · Member since 2009 · 428 posts · 249 votes
    10y

    Congratulations  brother. I believe there might be some hate on some of these threads however . Keep it up. .....  as a matter of fact go ahead and post a copy of the check when you get it.

  • Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    10y

    Were the sellers happy to give you 53K? If you told all 12 people that you were keeping 4K for getting their signature would they have been happy with that? I am not in the "great job" camp on this one. I also don't believe in kicking someone while they are down. I am a believer in making a profit and believe there is a balance between the two. This thread reminds me of another BP thread with the word "checkmate" used. I do wonder if the previous owners were informed of the net result would they be happy with the transaction or feel taken advantage of?

  • Louisville, KY · Member since 2015 · 15 posts · 1 vote
    10y
    Originally posted by @Fitzgerald Hall:

    The only thing I wasn't happy about was the fact that the guy tried to play me by asking for $75 a pice instead of $50. I immediately said no because 50 was more than fair. He agreed and that was the end of that. 

    Thanks for sharing and really glad to hear you've been so successful. This is the part that infuriated me. Besides posting on yelp or Angie's list, is there anyway to let potential future customers to know that these people are unscrupulous?

  • Jerry PuckettPro Member
    Wholesaler · Fort Worth, TX · Member since 2010 · 1k+ posts · 1k+ votes
    10y
    Originally posted by @John Thedford:

    Were the sellers happy to give you 53K? If you told all 12 people that you were keeping 4K for getting their signature would they have been happy with that? I am not in the "great job" camp on this one. I also don't believe in kicking someone while they are down. I am a believer in making a profit and believe there is a balance between the two. This thread reminds me of another BP thread with the word "checkmate" used. I do wonder if the previous owners were informed of the net result would they be happy with the transaction or feel taken advantage of?

     Sounds like they were happy to get the 175k that they ASKED for, to have their taxes paid, junk moved, property probated etc. 

    The choice here was not some money or more money, the choice was some money or NO money. That's what those in the haters camp can't seem to grasp for whatever reason. 

    If someone is selling anything, why is it the buyers duty to say " I'm sorry, that's just not enough, let me pay you more." ???  It's not, pretending otherwise is pure hypocrisy and a misguided attempt to stick to an untenable position in this circumstance.

    The fact of the matter is, the seller is happy and got exactly what they asked for. Further, if they had gotten what they deserved, they'd have nothing right now. 

  • John HornerPro Member
    Flipper/Rehabber · Columbus, OH · Member since 2013 · 1k+ posts · 655 votes
    10y

    Congrats, sounds like value add to me!

  • Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    10y
    Originally posted by @Chad Benedict:

    I agree with @Rick H. solved their problems.

    I think you nailed it.  Not all sellers need the best price as much as they need something else.  Sellers do know what agents do and how they do what they do.  And yet sometimes they still don't call them.  Like the woman who had never let anyone into her house and sold to me because I made the offer and sent the contract without ever seeing the interior.  All email, no phone calls.  Or the woman who sold to me for half of what I offered in order to "keep her hands clean".  She wanted only the money she had fronted for taxes and code compliance liens.  Her sister had deeded her the property for safekeeping from her own children. 10 years later, after giving her nieces and nephews every chance to buy her out for only the taxes, she was done. I bought it, no inspections, no contingencies, fast close.

    It's the rare agent that can listen to customer needs and do things outside the box.  The rare agent who will evaluate and list your property without seeing the interior or the ability to show it. 

  • Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    10y
    Originally posted by @John Thedford:

    Were the sellers happy to give you 53K? If you told all 12 people that you were keeping 4K for getting their signature would they have been happy with that? I am not in the "great job" camp on this one. I also don't believe in kicking someone while they are down. I am a believer in making a profit and believe there is a balance between the two. This thread reminds me of another BP thread with the word "checkmate" used. I do wonder if the previous owners were informed of the net result would they be happy with the transaction or feel taken advantage of?

    Your question doesn't sound like a question. Sounds like an accusation and that you already somehow know the answer. See my post above. I once had a seller sell to me for half of my opening offer. If you're not in the business of working directly with sellers, if you haven't listened to their stories and understand their issues, you can't accurately comment on what motivated sellers need and want. It's rarely the purchase price that's the number 1 issue with my sellers. Price is often the last thing we deal with. The bulk of BP members do not work directly with sellers and have very little to no experience with anything that's sold FSBO.

  • Real Estate Broker · Naples, FL · Member since 2013 · 9k+ posts · 6k+ votes
    10y

    It is a simple question. Would the seller be happy if they knew the net result? 

  • Rental Property Investor · Cleveland, OH · Member since 2015 · 1k+ posts · 880 votes
    10y
    Originally posted by @John Thedford:

    It is a simple question. Would the seller be happy if they knew the net result? 

     I'm sure the seller thought they were smarter than all the real estate agents and that's why they didn't need one. I don't have sympathy for people that choose to do business without professional help in industries that typically have professionals assisting clients. 

    It would be like someone going to court without an attorney and then everyone rallying around them coddling them for ending up in jail or getting screwed. What did you think was going to happen? This is why you hire professional help, so the professional can sit you down and tell you what you're doing wrong or that you're headed down the wrong path. 

  • Rental Property Investor · Atlanta, GA · Member since 2014 · 807 posts · 274 votes
    10y

    @Fitzgerald Hall that is fantastic! I am so happy for you. CONGRATULATIONS!!!

  • Lender · Greater LA/Orange County area, CA · Member since 2012 · 3k+ posts · 3k+ votes
    10y
    Originally posted by @John Thedford:

    It is a simple question. Would the seller be happy if they knew the net result? 

     Yes, a simple question. 

    Can you predict your own future? That of others? 

    You are telling others what's good for them. 

    So, guy with terminal disease X has four weeks to live. You say, 'I can get you a better price if we go with an FHA buyer'.

    The problem with giving people what you think they need is that we impose our ideas on those who must pay the burden of our shortsightedness. 

    I've never learned anything while I telling a principal something, only when listening.

  • Real Estate Investor · Lansdowne, PA · Member since 2013 · 1k+ posts · 656 votes
    10y

    @Fitzgerald Hall That was a spectacular mother of a wholesale deal, IMO. Anything to do with wholesaling there will certainly be naysayers if only for the mere case of being jealous - especially of a $50,000 profit! Yet you haven't achieved much success without haters. I look forward to hearing more from you on BP in your future REI business endeavors on whichever niche you choose to concur. You certainly can check wholesaling a probate tax sale off of the list of 'niches to Own'. Superbly done and wholesale proceeds well earned. Godspeed.

    1M Kudos,

    Mary 

  • Belleville, IL · Member since 2015 · 48 posts · 5 votes
    10y

    congrats @Fitzgerald Hall keep up the good work!! Wish you even more success!!

  • Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    10y
    Originally posted by @Mary B.:

    @Fitzgerald Hall That was a spectacular mother of a wholesale deal, IMO. Anything to do with wholesaling there will certainly be naysayers if only for the mere case of being jealous - especially of a $50,000 profit! Yet you haven't achieved much success without haters. I look forward to hearing more from you on BP in your future REI business endeavors on whichever niche you choose to concur. You certainly can check wholesaling a probate tax sale off of the list of 'niches to Own'. Superbly done and wholesale proceeds well earned. Godspeed.

    1M Kudos,

    Mary 

    It's too bad that the OP called this a wholesale deal.  Just because he lined up an end buyer hardly makes this a wholesale flip.   Probate lawyers, purchase agreements with heirs, tax sale redemption and arranging for storage and housing for the occupants is so far from a wholesale deal listed on the mls. He worked it with his time and cash.

    I wonder what the response would be if he had said he closed and resold and profited $50K.  Would there be the same concern for the sellers getting ripped off? Earlier this year I posted about a "title rehab" deal where I profited $30K+.  The seller got $4500.  On a property I sold for  $72K.  Where were all the haters on that one?  

  • Gerald JordanPro Member
    Investor · Columbia, MD · Member since 2014 · 35 posts · 7 votes
    10y

    Good job Fitz, win win ending is great and I appreciate how you helped them out with transitioning too. What if I may ask was you total expense in order to get probate out of the way, pay the tax obligation and assist the move. Were you able to clear a profit to your expectations?

  • Investor · Germantown, WI · Member since 2015 · 8 posts · 1 vote
    10y

    Great deal - good jobs on the hard work.  Now on your comment '

    Realtors only care about one thing; getting the highest price possible so that their check is as large as possible.

      I am not sure what Realtors you work with but we are not all like that.  I have a probate system I work as a Realtor and Investor giving the seller more options to get the most money - ITS ALWAYS ABOUT THE FAMILY not just money.  A little taken back by your comment.  There are Realtors that have heart!!!!!!!!!!
  • Real Estate Investor · Lansdowne, PA · Member since 2013 · 1k+ posts · 656 votes
    10y
    Originally posted by @Account Closed:
    Originally posted by @Mary B.:

    @Fitzgerald Hall That was a spectacular mother of a wholesale deal, IMO. Anything to do with wholesaling there will certainly be naysayers if only for the mere case of being jealous - especially of a $50,000 profit! Yet you haven't achieved much success without haters. I look forward to hearing more from you on BP in your future REI business endeavors on whichever niche you choose to concur. You certainly can check wholesaling a probate tax sale off of the list of 'niches to Own'. Superbly done and wholesale proceeds well earned. Godspeed.

    1M Kudos,

    Mary 

    It's too bad that the OP called this a wholesale deal.  Just because he lined up an end buyer hardly makes this a wholesale flip.   Probate lawyers, purchase agreements with heirs, tax sale redemption and arranging for storage and housing for the occupants is so far from a wholesale deal listed on the mls. He worked it with his time and cash.

    I wonder what the response would be if he had said he closed and resold and profited $50K.  Would there be the same concern for the sellers getting ripped off? Earlier this year I posted about a "title rehab" deal where I profited $30K+.  The seller got $4500.  On a property I sold for  $72K.  Where were all the haters on that one?  

    Excellent points, K. I always admire your thought process as it generally coincides with mine, whether I comment on a thread or not. You inspire me and countless others, I'm certained of it.

    This deal was so much more then a wholesale double close with all of the multitude of elements and trials the OP had to face and overcome... it should definitely go down in the hall of fame BP threads. Yet the fact that the OP called it that gave it somewhat of a tarnished image in many BP minds like a vice grip on creative thinking. Such a shame really. I'd long since found it wasteful to try bring them to see the light. Ques sera sera.  Again mucho congrats to the Fitz.  Thank you, K. 

    @Fitzgerald Hall - This needs to be transformed into a BP blog btw. 

    Kudos,

    Mary

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