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March 2018

JV With an Out of state wholesaler

A Niche List Buyer Brings Me a "Smoking" Deal


My buddy Elijah contacted me about a potential deal in the Los Angeles area. Elijah lives in Arizona. He had spoken about his niche, fire damaged properties, and an accountant remembered Elijah's name when one of his client's homes was damaged by a structural fire. The accountant called Elijah, told him the situation, then Elijah called me because we met when I spoke for Bigger Pockets at an event they put on many years ago in Colorado. Networking.


This house was severely damaged. Apparently the blame rested on SoCal Edison, but that is really not relevant to the deal. I know a few high end rehab buyers in the L.A. market. Two of which are brothers and long term "friends" of mine. We don't hang out, but when we do run into each other at seminars every few years, it's like reconnecting with an old friend. I reached out to them and asked them to take a look at the deal.


They liked the house, loved the area, and had recently done a rehab not far from here so they were very well informed on what the market wanted. They made us a fantastic offer. Just over $93K from what we had it under contract for. I was stoked... Then I found out the guy who brought my buddy the deal wanted 1/3. Ouch. I thought we could pay him a referral fee, but he insisted he could have done the deal himself. Not looking to cut anyone out of a deal and certainly not interested in not cashing a $31,044.78 check, I agreed to the three-way split. Everyone made out great. It was a fantastic deal all around, and I highly encourage you to reach out to Elijah if you have a fire damaged deal you're working, but are not quite sure how to proceed. He knows all the hidden profit opportunities in such deals and can get both you and your seller more.


Please leave any questions or comments below.


Credits:


The text under the link to this post on the Projects page is the first line of The Talking Heads song "Burning Down The House."


The picture was taken by an unknown photographer. It is a Garden Communities apartment project in La Jolla that was burned by eco-terrorists back in the early 2000's. I was a subcontractor on that job. I got paid twice since you burned up all my materials, and we still built the project so fuck you you pieces of shit. All you accomplished was polluting the atmosphere with more smoke, and the killing of hundreds if not thousands of more trees when we rebuilt the entire building.