A real estate investor buys a $350,000 property with zero personal cash by securing an 80% hard-money loan and sourcing the remaining 20% down payment elsewhere. He chose buying and holding over wholesaling to earn $80-90k instead of $70-90k, despite a $47,000 solar lien complicating the deal.
It's you buy a house, you own it, you put it back on the market after you clean it, you do carpet and paint if you need to. That's wholesaling. That's what we said, hey, let's see if this will make sense. So we ran the numbers and if we wholesaled it, we were going to make around $70,000 to $85,000, $90,000. So we're like, okay, take $30,000 now wholesaling it or buy it and run the risk and make $80,000 to $90,000. And on top of that, the solar lien was in play there, right? Obviously, if we take it down and we put it on the market, we sell it and the lien doesn't go away, we make half of that because the solar lien was $47,000. We'd have to pay that off if wanted to sell the house to someone else. So we took that gamble and I got in this deal with $0. I didn't spend any of my own money. What I did is I got a hard money lender. The hard money lender offered 80%. He gave 80% of the value of the home. So $350,000, he gave 80% of that and I had to go find the rest of the money for a down payment.
Why Traditional Wholesaling Keeps Failing You (Use This Pre-Flip Method Instead)
