Nathan Payne closed a $30k wholesale deal on a Utah property that looked dead when 7% interest rates killed cash flow for traditional buyers. The original buyer introduced him to someone needing a 1031-exchange property, and that connection made the deal work.
interest rates shot up even higher during the time we were doing this, especially for investment properties. So it was like 7% or 7.5%. It was a lot, which made it difficult to cash flow on this property. So I was like, "Dang." And the guy's like, "I'm out. We're not going to make any money on this." And in Utah, in expensive areas, it's like an equity play, but sometimes you don't even want to get into equity plays, especially right now. You don't know if it's going to go down. So he was out and I was like, "Dang. Well, I don't have any other buyers that would want this because it doesn't cash flow." But he was like, "Dude, I actually think I have somebody." So he did my strategy that I'm telling people to do. He did it with me and he's like, "I got somebody that needs to put their cash somewhere for 1031 exchange." So he gave it to one of his buddies and it was a $30,000 deal on a deal that doesn't really make sense. But we got it done because of relationships.
Why Traditional Wholesaling Keeps Failing You (Use This Pre-Flip Method Instead)
