Investor's Special: Wholesale Deal

Real Estate Deal Analysis & Advice
6yFollow

Investor's Special: Wholesale Deal

Keith Washington
Wholesaler 路 Los Angeles 路 Member since 2020 路 6 posts 路 7 votes

Investment Info:

Single-family residence wholesale investment in San Diego.

Purchase price: $417,000
Cash invested: $1,000
Sale price: $575,000

3/2, 1400 square feet in San Diego California. Technically it was a 2/2, but my cash buyer converted the den to a third bedroom. The repairs were cosmetic. And his wife is a real estate agent. After my wholesale fee of 20K, and roughly 17K in repairs, they walked away with just over 100K. Life is good. I'll continue to wholesale until I can start buying multi-families.

3Reply
26 views

10 Replies

Jump to latestLatest
  • Gabriel Chham
    New to Real Estate 路 San Diego, CA 路 Member since 2020 路 23 posts 路 7 votes
    6y

    Hi @Keith Washington, congratulations on a successful deal.

    If you don't mind sharing what are some of the things you learned from this deal.

    0Reply
  • John Draper
    Member since 2020 路 1 post 路 0 votes
    6y

    Exactly what is wholesaling?

    0Reply
  • Keith Washington
    OP
    Wholesaler 路 Los Angeles 路 Member since 2020 路 6 posts 路 7 votes
    6y

    Hi @vannachham

    Here are my top 3 take aways from that experience...

    1. Patience is truly a virtue. The escrow process can be brutal sometimes. 

    [...or maybe I was just anxious to get emails and signatures. Lol]

    2. Leave your emotions at the door. I fell in love with the project which isnt a bad thing, but it took my focus off of other deals.

    Sooner or later, you'll just start calling them doors. 

    3. Reinvest into your business. Outsource. Teach others to run your acquisition and disposition roles while you just oversee the operation. 

    If you have more questions, or you'd like to connect on future projects, feel free to shoot me a message. 

    Thanks

    2Reply
  • Demarcus Crump
    Financial Advisor 路 Atlanta, GA 路 Member since 2020 路 97 posts 路 24 votes
    6y

    @Keith Washington did you place it under contract for the $417k and how did the lead come in?

    0Reply
  • Keith Washington
    OP
    Wholesaler 路 Los Angeles 路 Member since 2020 路 6 posts 路 7 votes
    6y

    Hi @johndraper -

    Wholesaling is securing the rights to purchase a piece of property with a contract, or...purchase agreement.

    You can either purchase the house yourself, OR, you can assign the contract to another buyer. 

    In doing so, you can collect a wholesaling fee. 

    Do a search on youtu.be for biggerpockets wholesailing. 

    If there's any questions you have along the way, feel free to reach out. I'd be happy to help. 

    Thanks

    1Reply
  • Keith Washington
    OP
    Wholesaler 路 Los Angeles 路 Member since 2020 路 6 posts 路 7 votes
    6y

    Hi @demarcuscrump -

    Yes. $417K was the purchase price and the lead came from a realtor friend. 

    Along with the acquisition help as mentioned in the previous message, its also good to have a few real estate agents working with you. 

    They can email you hundreds of properties that match your buying criteria. 

    That's money in your email every morning.

    馃槉

    1Reply
  • Rod Crawford
    New to Real Estate 路 Winter Garden, FL 路 Member since 2013 路 4 posts 路 0 votes
    6y

    @Keith Washington was the 1K invested used to secure the contract?

    0Reply
  • Keith Washington
    OP
    Wholesaler 路 Los Angeles 路 Member since 2020 路 6 posts 路 7 votes
    6y

    Hi Rod Crawford - Yes, the $1,000 was used to secure the contract which is referred to as an EMD (Earnest Money Deposit)

    This amount varies from deal to deal. 

    When working with a most sellers, the earnest money deposit can range from $100 to $500. In some cases, I've heard the EMD being as low as $10.

    But when working with an agent, you could expect to pay a little more...just to make sure that you're serious about the deal. 

    I hope this helps. If you have any more questions, I'm happy to assist. 

    Thanks

    Keith 

    0Reply
  • Rod Crawford
    New to Real Estate 路 Winter Garden, FL 路 Member since 2013 路 4 posts 路 0 votes
    6y

    @Keith Washington Got it. Thanks for the knowledge!

    0Reply
  • Gabriel Chham
    New to Real Estate 路 San Diego, CA 路 Member since 2020 路 23 posts 路 7 votes
    6y

    @Keith Washington, I highly appreciate your take aways.

    Treat your business like a business.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free