336 Nimitz Wholetail Final Update
Wholetail = buying a house that needs repairs and putting it on the MLS and selling as-is to a homeowner at a discounted price.
This house finally sold on Aug 26th. Here are the details and why I love to Wholetail instead of doing full blown HGTV rehabs. (No offense if that’s what you like to do)
I bought this property on June 6th for $60,000 plus closing and holding costs I was into this property for about $65,000. I spent $40 to mow the yard one time and gas money checking on the property maybe 6 times. I didn’t even clean it out like I usually do because the sellers really didn’t leave a big mess.
I put a for sale sign in the yard to gauge the interest and my phone blew up with buyers wanting me to owner finance. Owner financing is a great strategy but I had never done one and needed to look into it. I put the property on the MLS on June 27 and immediately expected a bidding war because of all the interest I had when I just had the sign in the yard. But I was completely wrong.
I got a few low cash offers from investors and a couple showings the first week. At that point I knew the market had slowed down tremendously and I thought I had priced it too high because I usually get 10-20 showings the first few days. I seriously thought about taking it off the market and rehabbing it and renting it out for while. But I decided to give it a month.
I finally got a full price cash offer on July 5th but I declined it because it was subject to selling another property. After a couple weeks I got a revised offer not subject to selling another property and I accepted. After a couple of hiccups and some back and forth with contract changes we finally closed with a sales price of $113,000 on Aug 26th. After closing costs and subtracting my expenses I netted about $42,000 on this Wholetail deal.
Compare that profit with a full blown rehab and it doesn’t make much sense to spend the time and money fully rehabbing a property to make the same profit.
$113,000 Sell Price
-$60,000 purchase price
-$11,000 closing and holding costs
=$42,000 Net Profit
Time from purchase to sell 11 weeks. Most importantly, no time or money spent on a rehab
Wholetailing is a great strategy for today’s market because the demand for housing is so high and money is cheap. I’m sure the market is going to change soon and at that point I’ll go back to rehabbing and picking up more rentals.
If you have a house you need to sell fast as-is give me a call. I can close very quick without any inspections or loan approvals. I buy with cash and I make all the buying decisions. 214-810-4289 www.iamcashbuyer.com
If you have money in an IRA or bank and you are not happy with the returns, reach out to me. There is money to be made in real estate.
What questions do you have???