I just turned a wholesale deal into $536 in cash flow and $70k in equity [Deal Breakdown]
Alright ya'll.
I want to break down this deal quickly.
This is basically our bread and butter and what we do over and over again and have built a pretty decently sized portfolio from this model.
So basically how these deals work is as follows.
And also, keep in mind, that there are different ways to structure these deals.
So, you can do the exact same thing with a Subject To property -- all day.
This one we bought from a wholesaler.
THE DEAL
📍 Purchase price: $144,000 - we used Hard Money (100% purchase & rehab)
🔨 Repairs:
• $2,500 for cleanup + light rehab
• $2,000 for a new furnace
📍 Total in: $4,500
We got it cleaned up in 2 days and immediately refinanced into a DSCR loan at 6.5%.
We then went and sold this property on seller financing to a family that doesn't qualify with the banks.
This family was from El Salvador and they had been looking for a property in this area for a while.
They brought $12k down, and are paying $1,865/month (after servicing fees)
What this created for us is $536/month cash flow
& ~$73,000 in equity created instantly.
We got all of our money out of the deal at refinance.
I do these types of deals over and over again.
We've done over 70 a this point.
The families we work with will pay over market prices for the properties because we provide them with in-house financing.