Wholesaling Real Estate Case Study // Quick Real Estate Sale in Colorado Springs

Lindsey Jensen:
I’m over here on the West side of Colorado Springs today, where I recently purchased a house. I’m going to introduce you to Jason and Phillip. They sold their house to me because they got into trouble doing a flip. They decided to move into their downtown flip and sell their current residence. I’m going to let Phillip tell you his story and show us his new house and how beautifully they’ve remodeled.I am here with Phillip Jody, and how long ago did I buy your house from you?

Phillip Jody:
Oh, it was just before the holidays, right? It was October, maybe?

Lindsey Jensen:
Yeah, was it October? End of October. And then, we’re in your new house now, which I’m super excited to see. You got it all up and done. Do you remember how you found me?

Phillip Jody:
Honestly, I think I was just doing Google searches of some sort, and it was a Google search that specifically trying to find investors who buy houses. I called a couple of people. I think, as you know, I talked to someone else who promised a cash deal.

Lindsey Jensen:
Yes. I was going to ask you about that. Explain what happened there because there was another person who was offering something on your house at the same time that I was, and I think, possibly a little bit more. And what happened with that that made you go with me?

Phillip Jody:
He came in, and essentially promised us, I think it was about 10,000 more than where you came in at. Again, really fast closing, you’re not going to have to pay closing costs, et cetera, et cetera, and it’ll be a cash deal. Days later, I think, you even sent me something saying, “Hey, your house is showing up as listed or whatever. Are you looking for investors,” which was shocking because that was not how it was described to me. It was, we have someone. It’s our owner who’s going to buy it for cash. And then, the reality is that they try to wholesale it to people. And if they don’t find someone by the time of their inspection date, then they just say, “Oh, I’m sorry, we can’t move forward-“

Lindsey Jensen:
They back out.

Phillip Jody:
And they back out. Yeah, and there’s no-

Lindsey Jensen:
What would’ve happened if you had another month or two of payments on the other house?

Phillip Jody:
We were to the point, carrying two mortgages and trying to renovate a gutted house to where we likely would’ve either defaulted on one of the loans or… Honestly, I was strongly considering whether or not I needed to, either the business or myself, file for bankruptcy because we just couldn’t get out of it.

Lindsey Jensen:
After we did that, do you feel like I followed through on everything? Was there any hiccups when we went to closing?

Phillip Jody:
Mm-mm (negative). No. It all was pretty smooth and quick.

Lindsey Jensen:
We did it pretty quick too, huh?

Phillip Jody:
Yeah, again, you told us that there wouldn’t be closing costs and all that, which, for anyone looking, no closing costs… I have my real estate license, so I don’t necessarily have to pay 6%, but the average seller is, so when you take into account the 6% realtor charge, plus closing cost, plus, plus, plus…

Lindsey Jensen:
Plus the $15,000 deck that needed to be done.

Phillip Jody:
Right. No, maybe a seller is not going to get quite as much, but when you take all that stuff into account and you can get out right away, for a lot of people, that would make a lot of sense.

Lindsey Jensen:
Yeah. And would you do the same decision again?

Phillip Jody:
With you guys?

Lindsey Jensen:
Yeah.

Phillip Jody:
Yeah.

Lindsey Jensen:
Yeah. Because we actually bought your house. Right?

Phillip Jody:
Right.

Lindsey Jensen:
Right? So, okay. Good. Awesome. Philip has an eye for beautiful homes and how to decorate them, but please remember, I buy houses whether they’re beautiful or if they need a little bit of work. It doesn’t matter to me. Let’s have a conversation. Give me a call today.