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

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

      A little taken back by your comment.  There are Realtors that have heart!!!!!!!!!!

     Making money and having a heart are not mutually exclusive. You wouldn't do what you do if you didn't turn a profit. 

    Just curious, do you often sink your own money into these options of yours? For instance, would you pay the taxes on a home without clear title?

    And really Jeff,  that's not directed at you and certainly not meant as a springboard for you to tell us about your business. Just goes closer to the heart of the matter. 

    Agents who hate on wholesalers and cry predator don't seem to be willing to put their own skin in the game, yet they seem to expect wholesalers to be very altruistic and help a seller beyond what is reasonable.

    I don't believe any of the Agents I've heard from so far would have taken this on. They'd see that tax sale looming 5 days away and say Next!.

  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    10y
    Originally posted by @John Thedford:

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

    Again great rhetoric, Yes it is a simple question.  But the answer doesn't tell us whether what happened was fair, ethical or legal. 

    Maybe, but who cares? Just because they "Feel" that way doesn't mean they were taken advantage of.

  • La Vergne, TN · Member since 2015 · 8 posts · 4 votes
    10y

    congrates there Fitzgerald hall, awesome job, I don't care what the nay Sayer says. YOU did your due diligence, you went the extra mile to get THE DEAL DONE, BOOM Baby! And you reap the rewards. You made it a WIN WIN WIN for everyone, and win for us by inspiring the rest of us. Way to go....

  • Newark, NJ · Member since 2015 · 141 posts · 14 votes
    10y

    CONGRATULATIONS! Fitzgerald Hall," no good deed goes undone".

  • Fort Wayne, IN · Member since 2015 · 6 posts · 0 votes
    10y

    Congratulations Fitzgerald! Glad to see you went above and beyond. Keep up the good work!

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

     I don't have sympathy for people that choose to do business without professional help in industries that typically have professionals assisting clients. 

     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. 

     Because of course all of those professionals are ethical, altruistic and flawless.... Lawyers don't turn down cases, or try to convince people to take pleas so as to avoid time and expense. Having a license and regulation obviously ensures that said professionals will never do harm, and I suppose we should whatever they say because they know better.

    Curious....what is it that makes you think any sympathy on anyone's part would be required, expected or for that matter desired in this circumstance? Are you saying that Fitz because he is not licensed is not a professional and cannot assist? 

    And can we just lay to rest once and for all the comparison of lawyers to RE licensees? Let's see.....4 years of law school, bar exam.......to a few hours of classes and a couple grand in dues. Law books accessible to everyone at any law library to a closed system (MLS) that keeps the best information away from the public.....no comparison.

    I think a better analogy would be a stock broker. They don't care if you're buying or selling,  or if the market is up or down. Either way, they get paid. How many of you Investors have ever been sold a hog by your broker? Just sayin' 

    Before getting all smug, let's compare apples to apples. Better yet, why don't we just say great job Fitz! I sure would love to have a 50k payday!

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

     I don't have sympathy for people that choose to do business without professional help in industries that typically have professionals assisting clients. 

     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. 

     Because of course all of those professionals are ethical, altruistic and flawless.... Lawyers don't turn down cases, or try to convince people to take pleas so as to avoid time and expense. Having a license and regulation obviously ensures that said professionals will never do harm, and I suppose we should whatever they say because they know better.

    Curious....what is it that makes you think any sympathy on anyone's part would be required, expected or for that matter desired in this circumstance? Are you saying that Fitz because he is not licensed is not a professional and cannot assist? 

    And can we just lay to rest once and for all the comparison of lawyers to RE licensees? Let's see.....4 years of law school, bar exam.......to a few hours of classes and a couple grand in dues. Law books accessible to everyone at any law library to a closed system (MLS) that keeps the best information away from the public.....no comparison.

    I think a better analogy would be a stock broker. They don't care if you're buying or selling,  or if the market is up or down. Either way, they get paid. How many of you Investors have ever been sold a hog by your broker? Just sayin' 

    Before getting all smug, let's compare apples to apples. Better yet, why don't we just say great job Fitz! I sure would love to have a 50k payday!

     Not sure why you're singling me out, I believe I'm on the same side of the argument. My point, that you obviously missed while so wanting to be heard, was that licensed professionals have a duty to their clients. A seller or buyer has no duty to the other side to inform, so everyone attacking Fitz needs to get off their high horses. 

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

     Not sure why you're singling me out, I believe I'm on the same side of the argument. My point, that you obviously missed while so wanting to be heard, was that licensed professionals have a duty to their clients. A seller or buyer has no duty to the other side to inform, so everyone attacking Fitz needs to get off their high horses.  

    Sorry Matt, I had no intention of singling you out any more than I did Jeff or John when quoting their words earlier in this thread. I try not to get personal and appreciate other forum vets who do the same.  Yours was simply the most recent lawyer comparison, something I've wanted to address for some time now.

    Incidentally, since I do not know you from Adam I have no way of knowing for certain if the comment about being heard was intended to be snarky or if I'm simply missing your point (again?), but I would think as a matter of course those posting in a public forum would want to be heard, right? Otherwise why bother?

    So maybe we can all get down off our high horses, starting with me. 

  • Flipper/Rehabber · Williamsburg, VA · Member since 2008 · 143 posts · 105 votes
    10y
    Originally posted by @James Wise:

    This story is EXACTLY why there is a regulated real estate industry. It is to protect sellers from people stealing $50,000+ from them because they don't know any better. But hey I guess it's ok because you paid for the movers.......Gimme a break.

    I'm not sure how you jumped to the conclusion that the OP was "stealing" from the buyers, but I think your first response should have been in the form of a few questions. Maybe your judgement would have been different.

    I think what Fitzgerald accomplished was phenomenal, don't you? Paying the tax bill? Helping with moving expenses? These sellers had their backs up against the wall and Fitzgerald provided a way out. Regardless of the payday for our fellow investor, the sellers are currently and will be in a better position than if they had not found help in Fitzgerald.

    We want to bring up regulations... well, I'm pretty sure these "regulations" can't stop real people from losing a real house in real life. Do the regulations consider ALL transaction scenarios? The investor was the one in the trenches and had the better point of view to formulate a plan to make a soup-sandwich into a hero. I just got licensed and I can tell you that less than a few agents would have been useful in this situation.

  • Investor · Seattle, WA · Member since 2013 · 53 posts · 7 votes
    10y

    @Fitzgerald Hall Congratulations again and keep up the good work!

    Thanks to all others who commented and weighed in on this extended debate, I really learnt a lot from the diverse viewpoints that were shared. That's truly one of the added values that BP brings to us!

  • Investor · Pinellas Park, FL · Member since 2014 · 57 posts · 3 votes
    10y

    Congrats!!!...Love the motivation

  • Landlord, Wholesaler and Agent · Newton, NJ · Member since 2013 · 97 posts · 46 votes
    10y
    I've been glued to this thread since yesterday, through last night, waking up and opening it immediately haha. Great stuff, a lot of smart minds around here. Fitzgerald Hall , great work bud, this deal is the kind of deal that makes a new person look at REI & get a desire to pursue it.
  • Quality Technician in a CNC Machine Shop · Rapid City, MI · Member since 2015 · 159 posts · 35 votes
    10y

    I am truly impressed...would love to hear the "beginning" details...how you found the house?  How much?  why you chose that house over others in the area?  what the probate issues were?  etc...  Thanks for sharing the above!!  I love reading these!!

  • Investor · Detroit, MI · Member since 2014 · 755 posts · 462 votes
    10y
    Originally posted by @Christian Carson:
    Originally posted by @Account Closed:

    The state has decided that residents are particularly at risk of predatory activities when buying and selling real estate, which is why the licensing statutes exist.....

    It is nice the government is looking out for the little guy....

    Oh Wait! Just a minute!

    Was this the same government that was trying to take the house without compensation forcing @Fitzgerald Hall to step in and save the little guy from the gov?

  • Dana WhickerPro Member
    Investor · Fernandina Beach, FL · Member since 2014 · 557 posts · 374 votes
    10y
    Originally posted by @Clayton P.:

    I've been glued to this thread since yesterday, through last night, waking up and opening it immediately haha. Great stuff, a lot of smart minds around here.

    Fitzgerald Hall , great work bud, this deal is the kind of deal that makes a new person look at REI & get a desire to pursue it.

     Me too.  Great discussion.  One can see both sides of the argument. 

  • Investor · Columbus, OH · Member since 2015 · 29 posts · 5 votes
    10y
    Originally posted by @Fitzgerald Hall:

    @James Wise Thanks James for your reply, but maybe you should ask more questions instead of assuming. One thing I did forget to mention is that, without me they would have lost the house. When the owner first contacted me, they were days away from losing their house to a tax sale. In the city of Decatur it would have been gone in a heart beat. They wouldn't have gotten anything, zilch, zero, nadda. I took a huge chance and paid their tax bill. A number of things could have gone wrong that would have caused me to lose my 5k. On top of that I paid for the probate as well, which they would not have been able to pay for without me. What realtor do you know would have gone to such lengths to help a seller? I could have gotten much more on the back end from a buyer but I chose not to. Im not a greedy person and my buyer recognizes that. Also, I never even negotiated a price with the seller, they told me what they wanted and I agreed. I literally went above and beyond to help this seller, much more than any relator I know would have. Theres a lot that went on in this story that I didn't write about due to the length of my post. But overall my concusses is clear and I have a great relationship with the seller and It was truly a win win for everyone involved. 

     Don't let the negative people get you down, they are upset because they didn't do such a deal. Anytime you do a deal and don't need a realtor expect to get picked on. 

  • Investor · Valdosta, GA · Member since 2015 · 187 posts · 112 votes
    10y

    Congratulations! Anything less than a congratulations or genuine curiosity about how you got the deal done is just someone with some jealousy in his heart. You did that!  ;)

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

    @Mary B. transforming the story into a blog is a great idea! I think I will actually do that this week. I won't spare any details about the entire process. 

  • Littleton, CO · Member since 2014 · 195 posts · 72 votes
    10y

    Congrats Fitzgerald!  You solve problems for people and you got paid well to do so.    

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

    @Melody Everett-Neddo I found the house while driving for dollars. Its located in a very popular area and is one of the only houses on the street that hasn't been torn down or rehabbed. There weren't any probate "issues" so to speak, more so the process just needed to be started and completed before the heirs could legally sell. The parents actually left a will that stated only two of the 12 children would inherit the house and a few cars. This was because those two heirs were the only people to help the parents as they got up in age. 

    Initially I thought it would be very difficult to get all of the heirs to sign since they would not benefit from the sale. Surprisingly my attorney got it done pretty quickly with the help of the seller. There were tears and arguments amongst the heirs but we eventually got through it. We actually went to about 7 different houses around town to get the documents signed. It was quite the experience.

  • Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    10y
    Originally posted by @Jerry Puckett:
    Originally posted by @Jeff Cubinski:

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

      A little taken back by your comment.  There are Realtors that have heart!!!!!!!!!!

     Making money and having a heart are not mutually exclusive. You wouldn't do what you do if you didn't turn a profit. 

    Just curious, do you often sink your own money into these options of yours? For instance, would you pay the taxes on a home without clear title?

    And really Jeff,  that's not directed at you and certainly not meant as a springboard for you to tell us about your business. Just goes closer to the heart of the matter. 

    Agents who hate on wholesalers and cry predator don't seem to be willing to put their own skin in the game, yet they seem to expect wholesalers to be very altruistic and help a seller beyond what is reasonable.

    I don't believe any of the Agents I've heard from so far would have taken this on. They'd see that tax sale looming 5 days away and say Next!.

    This discussion would be greatly enhanced by agents with wholesaling complaints chiming in with exactly how they would do this deal....James said if he listed the property his buyer could do what the OP did.  Which really skims over how that would happen.  But most importantly totally ignores the price that buyer would be willing to pay.  Do agents really think that investor buyers who front cash and hire probate attorneys and deal with 12 heirs pay fair market value?  

  • Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    10y
    Originally posted by @Richard Dunlop:
    Originally posted by @Christian Carson:
    Originally posted by @Account Closed:

    The state has decided that residents are particularly at risk of predatory activities when buying and selling real estate, which is why the licensing statutes exist.....

    It is nice the government is looking out for the little guy....

    Oh Wait! Just a minute!

    Was this the same government that was trying to take the house without compensationforcing @Fitzgerald Hall to step in and save the little guy from the gov?

    It off topic but worth noting that that county tax collectors do not sell properties with no compensation to the owner or heirs.  County tax collectors are allowed to collect only back taxes, fees and interest, and the cost of the sale (legal fees, publication fees, auction fees, etc.)  Any overage goes to the owners of record at time of sale.  In this case, the overage probably would have gone to the the decedent's estate.  The heirs would then have had to file a claim with the county tax collector.  The big bad government is sometimes really unorganized and does things in expensive and inefficient ways.  However, county tax collectors don't get get to collect the sale price of $175K for selling a property with $5K past due taxes.

    I bring this up because there is a lot of commentary on BP about owners having no rights and losing everything to tax sale, which is hardly the case.  Tax sale isn't really a money grab from the county. Tax collectors have other games.  :)

  • Investor · Detroit, MI · Member since 2014 · 755 posts · 462 votes
    10y
    Originally posted by @Account Closed:
    Originally posted by @Richard Dunlop:
    Originally posted by @Christian Carson:
    Originally posted by @Account Closed:

    The state has decided that residents are particularly at risk of predatory activities when buying and selling real estate, which is why the licensing statutes exist.....

    It is nice the government is looking out for the little guy....

    Oh Wait! Just a minute!

    Was this the same government that was trying to take the house without compensationforcing @Fitzgerald Hall to step in and save the little guy from the gov?

    ....  Any overage goes to the owners of record at time of sale...

    Overages are NOT returned in all jurisdictions! Because Michigan goes through Judicial Foreclosure, The county owns the property out right or Fee Simple at the time of the sale and does not pay overages to a previous owner. 

  • Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    10y
    Originally posted by @Richard Dunlop:
    Originally posted by @Account Closed:
    Originally posted by @Richard Dunlop:
    Originally posted by @Christian Carson:
    Originally posted by @Account Closed:

    The state has decided that residents are particularly at risk of predatory activities when buying and selling real estate, which is why the licensing statutes exist.....

    It is nice the government is looking out for the little guy....

    Oh Wait! Just a minute!

    Was this the same government that was trying to take the house without compensationforcing @Fitzgerald Hall to step in and save the little guy from the gov?

    ....  Any overage goes to the owners of record at time of sale...

    Overages are NOT returned in all jurisdictions! Because Michigan goes through Judicial Foreclosure, The county owns the property out right or Fee Simple at the time of the sale and does not pay overages to a previous owner. 

    I get that there wouldn't be overages if the the county or state takes back property that they then sell. CA is non judicial tax deed sale and the county or state never takes title.  If the property doesn't sell at auction, it remains in the name of the owner of record, and will be offered again for sale if the taxes remain unpaid. 

    So, in MI you're saying the county tax collector can realize a windfall at tax sale? How is that ok with the tax payers?

  • Ned CareyPro Member
    Moderator
    Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
    10y
    Originally posted by @Account Closed:
    However, county tax collectors don't get get to collect the sale price of $175K for selling a property with $5K past due taxes.

    Although in many areas the owners never get the surplus. They don't know they are entitled to it and don't know how to claim it.  

    Similar to the thread here, radical  liberals who have never helped someone claim that money, have a hissy fit when someone charges a fee to help someone claim it. Though they are perfectly happy that the owner would otherwise never see the  money and the government keeps it. 

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