This is a continuation of “The Great Escape” audio podcast reality show with Eric Thiele. Eric has been given assignments each week to help him get his wholesaling business started. In this episode, Eric catches us up on the challenges he has faced and the successes he has achieved over the last few months.
Eric: And I’ve made a command decision on part. One of the properties that I owned back in Chicago is actually a house I inherited from my parents, which is free and clear. I got to thinking about, “Well I never rent it out, and it’s free and clear. I have a better use for that money than having it locked up in that house.”
Eric: So I made the decision to go ahead and go after basically getting a hard money loan against that house because I’m going to use those funds to buy other properties. And hard money is expensive money. I’ve decided that I’m going to make more faster, by turning those properties. So my strategy is a modification of what you teach, Sean. Everything I’ve done so far is HUD properties, off the HUD website.
Eric: I get them under contract. Here in Texas I only have 30 days with contract block of time.
Sean: Contract close. Right.
Eric: And if I want more, I can get it in 15 day chunks for another $350, basically for every two weeks.
And they do credit that back on the closing, but I don’t know how many extensions they will grant. Basically if I extend it out to a total of sixty days, I’m sort of thinking that I better just buy this darn thing and do my own fix and flip on it, if I haven’t succeeded at getting a wholesale buyer. So far that’s the strategy that I followed. I have done marketing to find wholesale buyers. I get interest, I show the properties. So far I have not succeeded at getting anyone to actually belly up to the bar and buy a wholesale deal. So what I’m doing as my fall back to this, is if I like the property, I go ahead and buy it. I have two where I’m getting the repairs, which is the cosmetic stuff, carpet and paint, and I’ll put them back on the market. I’m hoping to net out maybe $20,000 or $30,000 a piece. I’ll just be doing that.
Sean: So, how many properties is that now? You did the one for 70 something and sold it for 90 something, right?
Sean: So there’s that one in the pipeline that is pretty much set to go.
Eric: Right. I have two more closed that I’m working on. And a third that I have under contract that, at this point, I’m going through looking for a wholesale buyer or someone to partner, because I can’t quite afford to close on it myself. I definitely need to wholesale it now or walk away from the deal; which I don’t want to do. So that’s keeping me busy.
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