Update from an Ignorant Wisconsin Man: “My Last 4 Wholesale Deals!”

I stumbled upon a great little post in the forum today, and wanted to share it with anyone in the blogosphere who may have missed it. 

We actually get a lot of success stories in there pretty regularly, most of which never find their way to the “success stories” section of our humble little website. 

But they really probably should.  I need to be better about that.

Anyway this one’s from Nate Andree, or Nate (WI) in the forum.

You may remember Nate from his “Ignorant Wisconsin Man Captures 3 REO Flips” case study a little over a year ago.  Since then he’s been blowing and going, and it’s a pleasure to be along for the ride.

So here’s the lastest inquiring minds want to know about 4 quick wholesale flips Nate just bagged…..

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Hi gang,I wanted to share with you what we have been up to the last month or so. Its been busy to say the least!  I’ll try and give you some solid details.

Deal #1: The quick numbers….

• Purchase Price: 46.5K
• Repairs: 10K
• Sold for: 55K
• ARV (after repair value): 80-85K
• Profit: 7K

Deal #1: The story…

This was an offer I had accepted offer on a HUD property. I started the marketing machine the VERY next day (don’t wait folks).

Within 2 weeks we had it sold to owner occupants. We did a double close with them and their local bank. I bought it at 1pm and sold it at 2pm.

Homeowners were super happy. 1st time homebuyers. The buyers tried to get me down to 52.5K. I told them that this was a deal at 55K and I had other buyers who wanted but I was giving them first crack (which is true).

From this home I got 2 more buyers who want me to find them something. My buyers agreed to the 55K. Good choice

Deal #2: The quick numbers…

• Purchase Price: 42K
• Repairs: 1K to make “rent ready”
• Sold for: 46K
• ARV: 75K
• Rents in the 650-675 range a month
• Profit: 2.7K

Deal #2: The story…

While deal #1 was working towards closing I got an accepted offer on a REO. Started to market the house and……oh-oh…….no buyers! Had to close and then was going to put a rent to own in there.

But wait……A lady from my REIA called me to talk about one of her houses when I simply mentioned out of the blue about this home. She said that her brother would probably want to buy something like that and he was a cash buyer. Sure enough he came in and closed in 10 days.

For a landlord this was an ideal property. For me I really disliked this property. Some basement movement was evident but I didn’t like the city nor really the house.

Then why buy it, right?  Well….I got over confident and thought it would be an easy sell and it took me a bit longer to sell it. I was EXTREMELY happy to sell this one. Bought and sold within 3 weeks. Quick numbers.

Deal #3: The quick numbers…

• Purchase Price: 43.5K
• Repairs: 10K
• Sold for: 56K
• ARV: 90K
• Profit: 10.5K

Deal #3: The story…

During deal #2 I saw a very big ranch REO that took a 30K price drop. It went from 79.9K to 49.9K.

Now this was in a city that I had never bought anything in and really had no idea what the market was like nor what was moving in that city.

Here is what I knew…….that no where could you buy this kinda ranch, in this good of shape (just looking to the pics on the listing), for the price they were asking. The price drop hit in the early am and my agent and I were out there right away. Literally dropped everything and took off. We liked what we saw and decided to go after it.

We started marketing right away and had quite a bit of interest. We found a couple who had ZERO credit but absolutely loved the house and our price (heard this one before guys and gals? :-). They wanted to do a rent to own and I said we had too much interest in the property and that we were looking to sell only.

Then…….good ol’ Mom stepped in. She decided to buy the home for them. Gotta love Mom’s

When the price hit 49.9K we offered them 43.5K with a 1.5K deposit. They didn’t even counter us! They just took it. My kinda bank

Mom used a local bank for financing. We bought it and sold it within 10 days.

Deal #4: The quick numbers…

• Purchase Price: 51K
• Repairs: 20K
• Sold for: 60K
• ARV: 90-96K
• Profit: 6K

Deal #4: The story…

Very interesting story on this one.

I worked with these buyers on a Short Sale about a year ago. Wells Fargo wouldn’t budge on their price. I was offering 60K for it and they told me no can do with their balance of 79K.

So I watched for it as an REO and it came out at 79.9K. Then it went down to 73.9K. Then it went to 51.8K. We put an offer in of 51K and it was immediately accepted.

Go figure! Got a better deal with it as a REO than a short sale!

We bought this home at the end of December. We had a TON of interest but the repairs were pretty extensive, nothing structural wise but LOTS of cosmetics.

We found a lady who had a Mr. Fix It type boyfriend who really liked the area and the home itself.  We are closing tomorrow at 4:30pm.

I have the preliminary HUD-1 and it looks like I will net (after all my expenses) about 6K. Not a homerun its 6K that I didn’t have

Quick Summary…

So all together over the past 5 weeks or so were in the 26K range for profit.

I know there are many others on this board making way more than us and doing much better profit for deal margins.  My point of the post is for folks who try and hit the home run all the time whether they are just starting out or even a seasoned investor.

Wer’e just a small Ma and Pa shop with Jenni and I. And these little deals will add up folks.  So if you have the chance to make some quick money take and live to fight another day.

Out of all these deals my best deal was #2. I got out of a house I didn’t like, a city that I really don’t like, and I didn’t LOSE any money.  If you have any questions fire away and I will try and answer them as best as possible.

Hope this helps some others on this board to stay motivated and focused that flipping homes really does really work if you apply yourself, take action, and reap the rewards,

Nate-WI

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