Flip This Wholesaler

10/30/2007

I went out first thing to look at the property that I got a counter on yesterday. The property is in pristine condition. The only thing it needs is flooring, although you could rent it, as-is, with the terrazo it has now. The roof, ac, electric, plumbing, appliances, bathroom, and kitchen cabinets are all new. The only thing I'm a little concerned about is the size of the 3rd bedroom. It's teeny tiny. I would think it would be best used as an office. Or a closet. It also has a half bath in it, which is kind of wierd. The other thing I'm concerned about is the length of time it has been on the market- about 1 year. I'm not really sure why- it's a nice solid house, and priced right. The most recent comps are 160k, 147k, 146, and 141k.

On the way home, I called one of my wholesaler buddies to tell him about the property and ask his opinion. Half way through my description, he interrupts me ands asks me if this house is just east of Highway 301. Well, it is, and as it turns out, he got a call from another wholesaler right before he talked to me who was telling him about the same property- and, as it turns out, he's the investor who put the other offer in. Small world-huh? Also wierd that this property has been on the market for a year, and we both put in an offer for 90k within 1 day of each other. Spooky. Anyway, the realtor asked for highest and best, so I offered 94k. I have insider information that the other guy is not going higher than 93k, so I think I might be getting this one under contract. I put the offer in around 5pm, so I should be hearing something back tomorrow, hopefully. My plan for this would be to wholesale for 99k. Also, my realtor friend who is my agent on this bet me half of his commissions that I couldn't wholesale any properties off of the mls. There is a 1k bonus to the buyers agent on this property, plus the 3% commission, so that's about 4k in commissions, divided by 2, which is an extra 2k in my pocket. (that doesn't violate any realtor laws, does it?). If so, then I'm just kidding.