My partner and I have now officially wholesaled our second property!! The timing of this deal is another reason why having a partner is worth it’s wait in gold. I couldn’t imagine trying to work this deal while my life was changing with the birth of my son (that still gives me goose bumps saying it, my son!).
While this deal closed on schedule, we did have some ‘oh shit’ moments as we approached the closing date. …
First the title company took 2 weeks to get everything completed and that wouldn’t have happened if my partner didn’t discover that the person/company we were dealing with was actually farming out the title work to another company. When we found this out, we went directly to this other company to push it along. After doing a little research, we found that the lady who we were using (who ran her own title company) had recently needed to take a second job and only was doing title work on the side (read: not first priority anymore). We will be using another title company in the future.
Second issue was even more fun (at least for my partner). This deal mainly involved 2 people, the executrix (who was the wife of the deceased son) who lived in Wisconsin and a son who lived in Pennsylvania. As part of the agreement, the son had until March 19th to remove any thing from the house that he wanted. After the 19th, our buyer was allowed to pick through the left over stuff and take what she wanted. She was going to use some of the furniture for her staging business. We would then close on the 26th. Here is what happened…
March 19th – Son never showed up to remove items, executrix gave our buyer the go ahead to take what we wanted.
March 21st – Our buyer brought in some u-hauls and took quite a bit of furniture and other things.
March 23rd – Son shows up at the house. Freaks out because all the stuff is gone and starts phone bombing my partner. He threatens to call the cops saying we stole the stuff even though we got permission from the executrix. After speaking with the executrix (who can’t stand the son by the way) and our buyer, we all decided it was best to return the items. Thank god we had a great buyer!!
Only problem was that the stuff was all over the place by now (in a few houses for staging and in a storage facility) Our buyer refused to meet this guy at any of the houses so she gathered the items and trucked them back to the house for the crazy son. However the items in the storage facility she was not going to truck back and the son had to go pick it up. Our buyer said that if all the items are not gotten by closing, she was not going to release the money to buy the property!! and closing was in 2 days.
Luckily the son showed up 2 minutes before the storage facility was locking up for the night on Saturday and got all the items. Our buyer released the funds and we closed on schedule the day after.
March 26th – Closed!
Needless to say we learned a few lessons in this deal…
Lesson #1: Never remove anything from the house before closing. Even if you agree to it with the seller.
Lesson #2: Stay ontop of your closing company, call them every day until it’s completed. It’s our job as wholesalers to keep the deal moving along.
Lesson #3: Every deal has it’s own crazy!
Deal Final Info & Numbers
Additionally we estimated Repair Costs, Arv and Rents as…
- Repair Costs: $35k
- ARV: $160k
- Rents: $1,400 to $1,500
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