CAIQ Signed Made Easy

Caiq signed

in today's video i want to walk you through how virtual wholesaling works we just closed a property on december 22nd that we made 60 873 on now my goal with running this channel is to put out the content that i was looking for just a couple months ago or a couple years ago as i was learning kind of these new skills virtual wholesaling for us wasn't necessarily a business model it was something we thought we'd kind of try as an experiment and it's really paying off like the video subscribe to the channel if you find this helpful let's dive right in virtual wholesaling is when you're wholesaling a property but in a market that you've never necessarily been to and it's typically a house that you've never seen this particular deal was in louisville kentucky i think i've driven through a few times on my way to nashville i used to own some rentals there but i don't anymore and i now live in pensacola florida so this particular seller filled out a form on our website they'd googled we buy houses we do kind of some seo stuff so we come up for search terms like that on google if you're watching this though and you don't have that kind of stuff you could totally just run like pay-per-click ads for terms like we buy houses sell my house fast to get leads just like this now i think one of the important things with walking you through this deal a lot of investors will get leads on properties that aren't necessarily in their farm area maybe somebody didn't read the website very closely they see a facebook ad somebody tells them you buy houses something like that and you might get leads that are an hour two hours four hours outside of your market the point of this video is not to just throw them away on the flip side a lot of you guys live in expensive markets where you're not really wanting to jump into those shark infested waters and you're looking to invest somewhere wholesale somewhere a little bit easier so virtual wholesaling is going to be for you in those instances this house was kind of an interesting one because it breaks a lot of the rules for what wholesalers are typically told they should be looking for the property was only built back in 1995 it was in what i would call an a-class area um i don't know that it was a gated community but it backs up to a golf course we had drone footage done if that tells you anything about how nice of an area it is and the homeowner wasn't really distressed the gentleman had money but was moving for work so he was relocating from nashville down to georgia and didn't want to necessarily deal with kind of the typical listing process this actually made it pretty easy for us and that he had already had a whole bunch of local realtors out and through the home this particular property they told him he could sell for somewhere between 385 000 to 400 grand in its current condition if he remodeled the deck which we'll throw up a picture of it had a massive deck that just really needed some tlc they thought he could get upwards of 425 grand when he reached out to us he told us he didn't want to deal with any of that drama after the broker started pushing him on doing things like staging and touch-up paint and cleanup this is somebody who knew he was going to be moving in about a month wasn't necessarily distressed the market's hot but didn't want to deal with staging and kind of all of these things that the realtors were recommending that he well should do this is kind of a classic case of somebody who is maybe a little bit more affluent and just wanted to kind of hit the easy button and be done with this thing so when he initially filled out the form on our site it got put into my crm which is resimply i'll link to that above it's a tool that i use and absolutely love the guy initially wanted three hundred and thirty thousand dollars was what he would was what he told us he would take for cash now that's not a bad price but we do use the 75 rule so if we're going off of that like 385 ish range 25 brings us to right at about 300 grand minus repairs kind of down from there right so we basically decided our max we wanted to be out on this deal was going to be probably about 300 grand assuming the deck needed to be done assuming we could sell for 400 but we also didn't want to tie up all of that cash so we did what's known as a lease option so how a lease option works we basically signed a rental agreement with the guy like we were his tenants that covered his mortgage his taxes his insurance with the option or the ability for us to buy the house at a later date i'm not a fan of typical lease options but i do like using them kind of in this flipping scenario to help lower our risk it's also if we're putting money into the house a really good deal for the seller because if for some reason we don't execute the option he gets his house back but it's in better shape so we ended up taking over the guy's payments we ended up having the property deep cleaned there was like a gas leak some other tlc we had it had some pictures taken and i'll throw up all of the numbers as i go through them here on my phone in a second but we were basically under contract for 305 306 grand now when any time we're doing one of these virtual deals we try to look for like a local expert i mentioned earlier in this video i used to have some rentals in louisville that a local realtor would help us sell so we pulled on him for some of our contacts now we should have talked to him sooner because we ended up hiring an inspector anytime we're doing a virtual deal we do get a full-blown inspection done i want to know really what's going on with this place and the gentleman that we ended up hiring was um how do i put this nobody in town likes to use him because he's dramatic so inspectors are paid to find problems with a property and if they can't find any they tend to get a wee bit creative so this guy basically came back and said this a-class house was caving into the ground nobody should ever buy it it was horrible and needed all kinds of work the roof was installed wrong all kinds of stuff we talked to our realtor about it and he was like yeah nobody uses this guy because this is what he does um take it with a grain of salt so it was super helpful that we had somebody else to kind of bounce that off of he was like most realtors that i know in town won't even use this guy if the seller wants to use them they'll just say no or if the buyer wants to use them they'll just say no so we kind of took the information we got back with a grain of salt we presented it to the seller we were under contract for like 306 grand and we ended up reducing down to 300 000 even kind of retraded right hey the condition was worse than what we were expecting so we're under contract effectively at this point for 300 grand we put five thousand dollars down and to kind of show you the structure of this and how it works um in the comments i'll link to a redacted you know i'm going to cut out the guy's name and the property address and everything but i'll literally just give you guys the document so you can see what the terms were how we filled it out in case you want to do something like this we then turned around and listed the property on the market with a flat fee broker for 364 000 bucks double check my math here uh 364 900 bucks now the market was pretty hot um this was back in october november-ish that we ended up listing the property and we had a pretty serious bidding war so we'd listed for 364.9 which was below what the seller had told us realtors had told him he could sell it for and the house actually got bid all the way up to 392 grand i'm not upset right that's that's an ideal situation as a real estate investor when it was all said and done we ended up netting like back to us actual profit after everything right at sixty thousand eight hundred and fifty three dollars so not your typical like hgtv deal where it sold for 392 we were into it for 300 so we made 92 grand there's actual costs and fees that come out of that that i'll walk you through now so one thing that i do have to mention we were hoping that a title company would effectively let us like double close the transactions where we'd never have to actually buy the guy's house from him but that didn't end up working so we did have to bring three hundred thousand dollars to the closing table to get this thing closed out it was from one of our private lenders that we pay eight percent interest to so they funded our like purchase of the property for like it was about a week i think we had to wait for the documents to record so purchase price of 300 grand we spent a little under 12 000 bucks in commission on the buyers agents broker our closing costs for the purchase as well as the resale was around 10 000 bucks spent 300 on pictures 500 on house cleaning another 800 on carpet cleaning we covered right at 4 000 worth of monthly costs for the gentleman kind of in that lease option agreement we spent 1250 bucks with our initial broker who we'd worked with there to kind of get his advice um we spent 500 to get the property listed on the mls 250 bucks to fix a gas leak 600 bucks in utilities and a little bit of change there for insurance when it was all said and done so our total on this transaction uh was 60 873 bucks back to us now i do have to give credit where it is due i did barely anything on this deal a girl on our team angelique absolutely busted her ass to get this thing across the finish line it's actually one of those deals where i think had she not been working with us on this transaction it probably wouldn't have happened so definitely one of those instances where we've got the right person in the right seat somebody who's very good at kind of building rapport in that relationship i am gonna do more of a deep dive on virtual wholesaling and i'm hoping to get her to join me on this kind of on how we find these local contacts and kind of connect these pieces some of the negotiations and things of that nature i mean on this deal the guy wanted 330 we got him down 30 grand right there's some skill some effort some back and forth that goes in there like i said when it was all said and done the deal initially came in around august didn't close till december so there was definitely some back and forth there that we want to highlight for you be sure to subscribe to the channel so you don't miss kind of that deep dive on virtual wholesaling hopefully you found this helpful talk to you soon