Being a sticky deal this gave them the reason to go to a wholesaler or someone who can pay cash quickly.
This property has a lot of family issues. The father is the owner of the house, the daughter lives in that house but hasn’t been paying any rent as the father’s claim. And of course, the daughter has her own side of the story as well.
Fernando tries his best to be professional by not taking sides. He still provided his services even though the property is in really rough shape. There are also a lot of things that were done to the house that was not up to code.
This could be a problem in selling this house to a retail buyer because it’s going to get an inspection.
If you are interested in hearing the story of this wholesale deal and how Fernando and his team handled this “sticky” deal, just continue watching this video.
Fernando O. Angelucci is Founder and President of Titan Wealth Group. He also leads the firm’s finance and acquisitions departments. Fernando Angelucci and Steven Wear founded Titan Wealth Group in 2015, and under his leadership, the firm’s revenue has grown over 100% year over year. Today,
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So, the property was in South Holland and this was another one of those situations where the seller was in a pretty sticky deal. And that sticky deal is the reason why they had to go with a wholesaler or with someone that can pay cash quickly because they had, just a ton of weird family dynamics. So, right off the bat, you had a father who was a estranged from his daughter. The father lives in the home. I'm sorry, the father owns the home, but the daughter lived in the home and hadn't been paying any rent. At least that's what he claimed. He hadn't been paying any rent. When I talked to the daughter, she had her whole side of the story as well. I didn't really take sides at all. I just was trying to provide a service to both of them.
It needed new bath and needed dry wall repairs, paint, carpeting, flooring, window repairs, landscaping, pretty much. The after repair value on this was about $230,000. So, pretty good spread there. It was a 2300 square foot home with a four bedroom and one and a half bath bathroom configuration. Now, this is very weird for the area because in this area, homes are very rarely this size. They're usually around 1800 to 1600 square feet, closer to the 1600 square foot range. But, what ended up happening was there was a pool in the backyard that needed to be sealed. So, what they ended up doing was they buried the pool. They poured a concrete slab over the pool, and then they put an addition on the house to make this beautiful looking great room. It was a, it almost looked like a lodge when you walked in, it was just a huge long addition, so that pumped the square footage.
But one of the things you always have to be careful about as a fix and flipper is, you never really want to be at the top of the market. I know a lot of investors that do, do that, but they have tons of experience. They really know how to push the sold comparables to get to the point where they need to be. But in general, when you're just starting off, or maybe you're an intermediate fix and flip investor, you really want to stay either like right in the middle of the pack or even better, if you can get a really good deal on the smallest home or the ugliest home in the neighborhood, so that all your comps are well above where you're trying to sell your home. So, this was a situation where we had an investor. Again, same story as the last one.
They said that the deal was good. Everything looked really great. Then, within three weeks of closing, they decided to back out. So, we went to one of our really solid investor and I said said, Hey, Chris, you know, I got to close in this in three weeks. I already sent the, all the details to your lender. He's basically saying it's ready to go. I just need a formal submission from Chris. If you can close on this thing in three weeks, I'll give you a pretty good deal on it. So, we ended up selling that one, I believe for, yep. So we ended up selling that one for a hundred thousand dollars. So, pretty great spread on it. The investor closed very quick. He closed with our preferred lender and the appraisal came back much higher than what it was sold for, the as-is appraisal, as well as the, as completed appraisal came in about $30,000 higher than what we said the ARV was.
They closed very quick. And I think his plan is to turn it into a buy and hold rental property. So, really good deal. Closed real quick, made it super easy. So now, because Chris, I know is a good pocket buyer, where if I need something close, quick, he can come in and close that fast. What do you think I'm going to do? Now, anytime I have a property that is in one of his areas, I'm going to send it to him first, because I said, Hey, Chris, I know you close quick. You don't put up a fuss. You do everything I asked for in an orderly fashion. So, he's going to get those deals immediately. So, that was one of the deals that we did on the wholesale side. I got another really great wholesale deal that we just did recently as well. These next two that I'm gonna talk about, they're actually in process, so they haven't closed yet, but the first half of the process has been taken care of here.
So, we have one in Calumet City. It's a great rental area, also very good fix and flip area. But, recently there's been a lot of changes to that area, where the city is now starting to no longer approve new rental applications or rental permits. They want to kind of raise the housing stock, if you will. And typically rental properties are not repaired to the level at which you would repair a retail sale or retail property that are going to sell to a homeowner. So, in this property, there were, there was an owner that was pretty easy to work with. We have it under contract, I believe at 55,000. And on this one, it didn't really make sense to send it to a real estate investor. Just because most of the investors in this area are looking to either buy and hold the property or fix and flip.
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