how I made $10,000 on one wholesale deal (Deal Recap)

Another deal recap on 324 E. 3rd North St. In Morristown. This is a massive historic home. I want you guys to take a look at this. It is over 4,000 square feet. It is actually really beautiful. And it's like old Victorian style, but it was just absurd. It was listed for sub owner too, which is crazy. We were able to actually negotiate a massive discount because it was listed at 225, which we're going to get into that in a moment. But this was a novation listed on the market to an assignment. And then we ended up making $10,000 on this deal. But you're gonna hear about this deal and you're gonna be like, wow, that's actually insane. Took three months on market, like I think it took. Yeah, it took almost three months on market and then months of negotiation. Actually, I might have just might have been three months total. Let me check. So it started on. Yeah, look, she listed it for sale for 916 on 9 16, 20, 24 for 225. Right. And it ended up. We ended up getting under contract like 10. She ended up removing it on 10 11. So we ended up getting under contract then. So 10. October, November, December, January. Took almost four months of negotiating with buyers and trying to find something. That's actually insane. So she was asking. It was a for sale by owner lead on a beautiful historic home. She was asking 225,000. The rehab was going to be massive, something we definitely couldn't take on. So we structured it as an ovation and we brought it to the open market to try and find a specific sort of buyer because it wasn't going to be like a standard investor because this was going to be a massive restoration, not a rehab. We ended up having to do a $45,000 retrade to make the deal work. And if you don't know what a retrade is, it means I told her I was going to pay her a certain price. And then I figured out that that price was way too high based on the repair. So I had to retrade her $45,000. And then after a long process, we found a local buyer who literally just loved the history. And we made $10,000 on the on market assignment. We actually ended up assigning this deal on the market, which is not. We end up assigning this deal on the market, which is not standard at all. Usually we do like a double closing on market, but there wasn't that much spread on it at the end of this because of the retrade. And then the whole deal took literally like four months in total with negotiations plus marketing and all that. It was a really, really tough deal to get done, but we ended up doing it. So what innovation means, basically instead of closing and taking title, we just put the property under contract. We position to sell it on the end to an end buyer on the MLS and on the open market. We just used a structure that allows us to sell it like a listing while not being a listing agent, still getting paid and you don't need a license to do this. What made it attractive? So the seller, it was a beautiful home, it was historic and there definitely was a buyer for it because it wasn't that, it wasn't that expensive. The property had character. What made it so difficult was the rehab amount. The rehab amount was intensive. Probably upwards of 150, probably 200,000. And the spread is only going to work for some like a very specific kind of buyer. Like it had to be someone who wanted to restore the property and it was going to require a lot of patience and a lot of time and a lot of effort and someone who truly valued the home. So like I was telling you guys earlier, for sub owners, we spent $0 on this lead. It wasn't a one call close type of deal. It took multiple months of negotiations that actually get to a number that worked. But the key here was the $45,000 retrade which the only way we were going to get the deal done is if we could sell it to somebody at one. I believe I'll pull up the documents here. What did they say? I had to sell it to them to. Here we go. So we ended up, let's see, we ended up selling it at 145 and we had the property under contract initially, which you'll see here for 180,000. I already retraded her 30 grand that then I had to retrade her even more which honestly sucked. But it is what it is. And then we ended up finally getting a retrace down and then we still had to wait three months on market looking for a real buyer, like a really good buyer for this. And like I said, we ultimately sold it to a local buyer who loved the history of the property and that's was a novation that we assigned on the market and we put under contract 480,000. We ended up retrading to 150, realizing that still didn't work and then retrading the 135 and then we sold it at 145 for a $10,000 profit. The one thing about this lesson is, like, the biggest lessons I learned here was one, the deal is not always quick. Like, wholesaling is not always super fast, especially when it comes. It is wholesaling, but not novations. Novations are not always super fast. Some deals also, like this one, require a lot of time, patience, and strategy. Like, you have to be willing to be open with the seller and, like, being transparent with her and, like, figuring out a strategy to actually get this thing sold to where you can make money, too. And then, like, historic heavy rehab homes like this, they need a very specific kind of buyer. It's not as simple as they make it seem. It's, like, not as simple. It's like a standard flip property. So you have to make sure you have the right kind of buyer for that. And then sometimes, you know, the win is just staying with the property long enough. Keep trying long enough until you finally get paid. So key takeaways here. Even if it's a really cool house, even if the number's pencil, sometimes the rehab is so intense that people don't want to take it on. Retreads are not evil because literally, we didn't make that much money on this deal. We weren't even squeezing her. We literally just needed to make some cash. It was the only way to keep the deal alive when reality hits, because, like, you don't know what the property's worth until someone makes an offer. And then the last thing is novation on our strategies can solve deals that won't work as a simple assignment, because there was no way we're getting this deal done without having that specific kind of buyer. And we were able to find him through the market. So that was 324 E. Third North St. In Morristown, and that was a $10,000 profit deal.