Case Study #3: Wholesaling Houses with Ginger Macias

Case Study #3: Wholesaling Houses with Ginger Macias

A Note from Justin:

Today’s case study is brought to us from Ginger Macias owner of OC Wholesalers and Real Estate Insiders.

A lot of folks realize that House Flipping is a great way to create financial abundance but don’t know how to get started. Or they think that you need a large chunk of capital to get going.

Well, this wholesale deal is proof positive that you don’t need any money to get started in House Flipping. All you need is passion, drive, education and massive action.

Take it away Ginger!

*  *  *

The case study I want to share today is from a deal I did earlier this year that required NO money to complete.

That’s right! ZERO. ZILCH.

The great thing about wholesaling is that you can really create money “out of thin air” and create systems to bring these types of deals in on a consistent basis.

I’m constantly telling my students to go out and make friends. Real estate is all about creating those relationships where we can help each other.

In this case one of my real estate associates (friend) had someone who had inherited a property and was looking for a quick all cash deal. She called me, made the connection and we negotiated and closed the deal with her friend.

House Flipping Case Study #3

The outside of the house.


Here are the numbers:

  • Contract Price: $390,000
  • Repairs: $40,000
  • After Repair Value (ARV): $580,000
  • Wholesale Fee: $20,000 (note: average wholesale fees range between $5k-$7k/deal)

Some important things to keep in mind:

Be aware of the difference between the profit “spread” and the projected “Net profit“. I see this mistake a lot so let me clarify: the “spread” is the ARV minus the contract price; the projected “net profit” also includes all the costs to buy, hold, and sell the property.


  • $580,000 (ARV)
  • – $390,000 (Contract Price)
  • – $20,000 (Assignment Fee)
  • = $170,000

As you can see the profit is not $170,000. After taking the costs into consideration the projected profit is $70,000.

Once we had our contract signed with our seller, we submitted that contract to escrow where they ran a preliminary title report and drew up escrow instructions. During this time I called some of my VIP buyers to let them know I had a property under contract and ready for them to close.

House Flipping Case Study #3

Inside the house. Why no ‘after’ photos? Because this was a wholesale deal! 🙂

Immediately one of my buyers went to look at the inside of the property and decided he wanted it. We completed an agreement that assigned him the rights to my contract and he deposited the non-refundable earnest money deposit into escrow and paid $4,000 of the assignment fee upfront.

Once he got his funds ready we closed in a couple of days and I got the rest of my assignment fee of $16,000 wired to my bank account!

That’s $20,000 without using a penny of my own money on the deal.

House Flipping Case Study #3

Not a penny of my own money went in to this deal!

To recap, here are some of the key lessons you can learn from this case study:

  • Make friends and let everyone know you’re looking for distressed properties
  • You don’t need a lot (or any) cash to find a deal
  • Have your cash buyers lined up and ready to buy
  • Create a system that helps you create a sustainable business so you can do it over and over again!

Now go out and close some deals! You can check out some more tips and free videos at

From Justin: Thanks Ginger!  In a few weeks I will be writing a more detailed post on wholesaling so look out for that, in the meantime if you have any specific questions on wholesaling please put them in the comments section below and either myself or Ginger will be more than happy to answer those for you.

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