1182 S Perkins- A Deal That Went Wrong Within a Day of Closing

[Keith Dawson]

Investment Info:

Single-family residence wholesale investment.

Purchase price: $81,000
Cash invested: $100
Sale price: $90,000

This is a partial brick 3 Bed 1 Bath home in the Colonial Acres Neighborhood of Memphis,TN. Colonial Acres is one of the most sought out neighborhoods in East Memphis.

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

What made me interested in this deal was the location and the structure of the house. Like I said before, Colonial Acres is one of the most sought out areas in Memphis.

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

I recently wholesaled a home on the same street that the same owner owned. I wholesaled the first one, so he told me he had another property that he was interested in selling on the same street. So after go back and forth with the seller to strike a deal that made sense for the both of us, I secured a buyer that was instantly ready to buy my contract and we just closed escrow 4/26/2019.

How did you finance this deal?

I wholesaled the deal

How did you add value to the deal?

I connect a motivated seller with a buyer who was looking for a great deal

What was the outcome?

The deal fell apart from how I first envision the deal should have gone. I went from about to cash a $9,000 check to cashing a $1,000 check.

Lessons learned? Challenges?

So my biggest lesson I learned was that I need to be in total control of my deal no matter what. I closed with the buyer's closing attorney which whom did not know jack swat about closing an assignment deal(#1st & 1st &1/2 mistake LOL) (#2nd mistake) I didn't instruct the title company to do a blind closing(#3rd mistake) I only had a week window to close. I should have had the title work already started so we could close within a week. (#4th mistake ) waiting for a higher offer from other buyers

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

I am an agent, so was the buyer but this was a normal wholesale transaction