My First Wholesale Deal

My First Wholesale Deal

Published: 11/30/2009 by Octavius Mosley

Hey guys,
I'm back again with another deal. This one is my first wholesale deal. I found this deal down in south Florida near Fort Lauderdale. I didn't know much about the area but the numbers made sense. I spoke with the owner and she informed me that she had a contract on the house but the "investor" is dragging his feet. Their contract was ending and he wanted to extend. I informed the seller i could close in two weeks and that it would be all cash. She went with me! On paper the deal went like this:
205k ARV
20k Repairs ( plumbing, electrical, windows, painting, some drywall)
5k Closing cost
95k purchase price

85k profit (on paper site unseen)


I went to the home ( 3 hour drive form my home) and I was floored by the condition. Please share with me in my experience

For some silly reason i thought the house was in decent shape. I also thought the house was bigger. This house needed to be rehabbed in the worse way and I was not up for that challenge. Well, with that being said, i totally changed my strategy. I began to look for investors to wholesale to. I found one and after severally days of bickering about price ( negotiating ), we came to an agreement. This is how the deal end up:

108k Wholesale Price ( Assigned contract )
95k Original contract (With Seller)
3k Seller Cosing cost
10,ooo Profit


This is not what i set out to make but it worked out. I still made a good check for minimal efforts. I spent about 10 hours and 10 mins on this deal. 3 hours there 3 hours back 2 hours searching for an investor and 2 hours doing contracts and reviewing paper work. Of yeah...the 10 mins. I spent 10 mins going to the bank and cashing the check. Until next time. ...

The Motivated Seller