Thank you, Mr Ron LeGrand, for sharing your knowledge and systems. Because of what I learned from you, I was able to close my very first wholesale deal—overcoming title issues, multiple heirs, and delays. I walked away with a $31.5K check on December 20, 2024. Your training truly works!
On November 6, 2024, I received a call from a seller who saw my bandit sign. From what she told me, I recognized it as a potential deal. When I asked her, “What is the least you can accept?” She mentioned that she had received offers between $50K and $100K. I then asked, “If I pay cash and close quickly, what’s the best price you can do?” She responded with “around $75K.” At that moment, I felt it was a great deal.
I asked if she would be available the next day to show me the property so we could proceed further. She agreed but mentioned she had to take her sister to the hospital for a procedure and would text me the exact time the following day.
After our call, I quickly ran property comps and saw that the area was hot. Several houses had sold within 1-3 months, with an average ARV of $215K.
Property Visit and Negotiation
We met the next day. The property looked decent—she had already done a cleanup and paid for a dumpster. The only issues were a slight dog urine smell, a minor floor issue in the kitchen, and a few small (non-structural) cracks in the exterior walls.
During our negotiation, I asked the same pricing question again, and this time, she came down to $62.5K. I knew it was a solid deal. We signed a purchase agreement with a closing date set for December 6, 2024, just to be safe (though I expected it to close much sooner, assuming no title issues).
The seller explained that the property was owned by her mother (who had passed away) and sister (who was now sick). She had moved her sister into her apartment and was taking care of her. Everything seemed smooth, and I expected a fast closing.
That same day, I started looking for cash buyers, calling realtors who had recently sold properties in the area.
Finding a Buyer
After calculating the numbers:
· ARV: $215K
· Repairs: $40K–$50K
· MAO Formula: (215K * 0.7) – 50K = $100.5K
· Potential Profit: 100.5K – 62.5K = $38K
One of the realtors I called said she had a buyer and asked for my price. I told her $110K. She asked if we could do $100K. I countered, agreeing only if the buyer could close within 10 days, and she agreed.
The next day, I met with the realtor at the property. She inspected it, called her buyer, and after some discussion, we agreed on $95K with a 10-day closing. We immediately signed an assignment agreement, and I sent everything to my title company, expecting to close within 10 days.
Unexpected Title Issues
Within 3-4 days, the title company reported that the house had two owners, one of whom had passed away. This meant they needed more time to verify the heirs.
I extended the assignment agreement to December 3rd, thinking it was more than enough time to close. Even though my original plan was to close in 10 days, collect $32.5K, and fly to Argentina to see my girlfriend (whom I hadn’t seen in nearly 8 months), things didn’t go as planned.
Since this was my first wholesale deal, I didn’t want to push the title company too hard. Instead, I just emailed them once a week asking for updates. Meanwhile, I kept the seller and buyer informed, assuring them that things were progressing, just taking a little more time.
More Heirs Discovered
The title company later informed me that there were four heirs:
1. The seller (sister)
2. The sick sister (who was the legal co-owner)
3. Two brothers
The two brothers needed to sign an addendum approving the sales price and updating the heirs in the contract. I informed the seller, and she handled it. However, she then told me one of her brothers had also passed away, leaving behind a wife and a son.
I asked the title company, and they confirmed that the wife’s signature would be enough. I collected all the required documents and submitted them to the title company, expecting it to be resolved soon.
Delays Leading Up to Closing
As Thanksgiving approached, I knew things would slow down. Then, the title company told me they also needed the son’s signature. I got that taken care of, thinking everything would be done right after Thanksgiving. I was wrong.
As the December 3rd deadline approached, I had to extend the assignment agreement again to December 6th. By this time, the buyer was getting frustrated. Since it was her first time buying from a wholesaler, she was uneasy about the delays.
When December 6th arrived and we still weren’t ready to close, I had to ask both the seller and the buyer to extend to December 20th.
· The seller agreed but was concerned.
· The buyer was not happy at all. She called me, asking for a discount since I had originally told her we only needed 10 days.
I explained that I hadn’t known about the heir situation when we started and that if I had known, I would have bought it myself and sold it in spring for $120K. I reminded her that the reason I had initially offered her a $15K discount was to close fast.
I told her she could either extend the agreement or exit the deal. Later, she signed the DocuSign extension agreement.
Final Closing Hurdles
By this point, I was super anxious. Fortunately, both deceased parties (the mother and brother) had passed away over two years ago, avoiding probate and saving us 3–6 months of extra delays.
The seller wasn’t happy about having to involve the entire family, but I reassured her that this was the only legal way to get a clean title.
On closing day, she got everyone to sign:
· Her sister (the real co-owner, 50% share)
· Her brother (who signed remotely with his wife via a notary and overnighted the documents)
· The widow and her son (who took a break from their 12-hour hospital shift to sign)
Additionally, all heirs had to sign an acknowledgment letter confirming the sales price.
Wire Transfer Delay
The buyer wired the money the same day, and we were all waiting for the happy ending… but the wire didn’t arrive by the end of the day!
The title company told me it should arrive the next morning. However, the next day, the money still hadn’t arrived. The seller was furious, feeling she had signed everything for nothing.
I asked the buyer to call her bank, and they told her the funds were held at the Federal Reserve for a routine check but should be released by 2 PM.
At 2:30 PM, the title company confirmed the money had arrived. I celebrated—until I got an email saying they were missing one last document.
The brother who had signed remotely had not signed the acknowledgement letter with his wife. I was in shock.
