I ran the comps and the wholesale property seemed to worth about $240,000 and my price was $162,00. Just around 68% LTV. Which in today's market would be a hard sell. When most of what I'm listing now is 40-50% LTV.
With a 14 day closing I had to get my butt in gear and go find a buyer. At the time I had a small email list of about 20-30 people that I had met at the local REIA. Then I had another 10 peoples business cards who told me they were actively buying. In my mind I'm thinking this a slam dunk and put in out at $189,000. A few days past and I got a couple calls but no offers. A week went by and I showed to a couple more people but again no offers. Basically I have 7 days to close this deal or I lose my $1000 and I have no money to pay my bills!
Fast forward a couple more days and I finally got an offer. It was for $165k. Not exactly going to make me rich but would help pay the bills. I told him, I would let him know tomorrow.
A couple hours later I received a call from a well known hard money lender asking if the property was still available. I said that it was. He asked if I would take $186,000? ...and I asked who the buyer was? Because, I had learned in this business just being a bird dog for others just because someone makes you offer dosen't mean it will close. He said that he would be the buyer. Well! That changes everything! Of course I will except that offer. Wouldn't You?!?!?
Because it was a cash offer we where able to close on time and I walked away with a check for $14,000.
Sometimes it's good to look back on days like that to remember your beginnings and how you grown since then. If your just starting out maybe you should remember this day. Maybe it gave a little hope or inspired you to take one more step to financial freedom.
Just remember, winning the wholesale Real Estate game is about taking some risk. Without it you will never win! Risk can be managed but never completely gone.
Best Wishes!!!
Ken Spohn More Articles on Investors Classifieds
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