5 Real Estate Deal Scenarios and the Lessons They Teach
Five example deals, a wholesale, two flips, a BRRRR, and a near miss, with the numbers, what went wrong, and the lessons each one teaches Texas investors.
Most deals don't go exactly as planned. Repairs run over, buyers back out, and timelines slip. The investors who do well are the ones who plan for that.
Below are five example deals, one for each common strategy, with the numbers and the lessons each one teaches. These are illustrative scenarios, not real investors or specific transactions. The situations are typical of what Texas investors run into.
1. The wholesale deal that needed a better repair estimate (Sherman)
Strategy: wholesale Property: 3 bed, 2 bath, 1,600 sq ft, an inherited house, dated but structurally sound
| Item | Amount |
|---|---|
| Seller asking | $140,000 |
| ARV | $245,000 |
| Wholesaler's repair estimate | $35,000 |
| Buyer's repair estimate after walkthrough | $45,000 |
| Contract price | $125,000 |
| Planned assignment fee | $18,000 |
| Final assignment fee | $15,000 |
What went right: the lead came from a relationship with a probate attorney, the heirs wanted a quick, simple sale, and the wholesaler had several buyers lined up before signing.
What went wrong: the repair estimate was based on photos. The buyer's contractor found older plumbing and some foundation work, priced repairs $10,000 higher, and asked for a lower price. The wholesaler cut the fee by $3,000 to keep the deal together.
Lesson: walk the property with a contractor before you set your price. Accurate repair numbers prevent renegotiations.
2. The flip that took twice as long (Dallas)
Strategy: fix and flip Property: 4 bed, 2.5 bath, 2,100 sq ft, bought at a foreclosure auction
| Item | Amount |
|---|---|
| Purchase price | $185,000 |
| Planned rehab | $40,000 |
| Actual rehab | $58,000 |
| Holding costs (6 months instead of 3) | $14,000 |
| Selling costs | $20,000 |
| Expected sale price | $310,000 |
| Actual sale price | $298,000 |
| Profit | $21,000 |
What went right: a good purchase price in an improving neighborhood, and solid buyer interest once it was listed.
What went wrong: the contractor ran far behind schedule, a foundation crack turned up during demolition, the HVAC system failed mid-project, and the market softened enough to require a price cut. Each problem cost money, and the delay made all of them worse.
Lesson: budget a 15 to 20 percent contingency, assume the timeline will slip, and include carrying costs for the extra months. The profit was still positive, but it was a fraction of the plan.
3. The BRRRR that worked (Fort Worth)
Strategy: BRRRR (buy, rehab, rent, refinance, repeat) Property: 3 bed, 2 bath, 1,350 sq ft, found through direct mail, needing a heavy rehab
| Item | Amount |
|---|---|
| Purchase price (cash) | $95,000 |
| Rehab | $38,000 |
| Total in | $133,000 |
| Appraised value after rehab | $185,000 |
| Refinance at 75% | $138,750 |
| Cash back (before refinance costs) | about $5,750 |
| Monthly rent | $1,650 |
What went right: the purchase price was about half of the after-repair value, so there was room to pull all the money back out. A tenant was placed quickly.
What went wrong: not much, aside from a short delay waiting on the appraisal.
Lesson: BRRRR depends on buying right. A deal like this usually comes after passing on many that don't fit. The money is made on the purchase, not the rehab.
4. The MLS flip in the Austin suburbs (Round Rock)
Strategy: fix and flip Property: 4 bed, 3 bath, 2,800 sq ft, an MLS listing that sat for 90 days with poor photos and a high price
| Item | Amount |
|---|---|
| Purchase price | $420,000 |
| Rehab (including an unplanned roof) | $65,000 |
| Holding costs (4 months) | $18,000 |
| Selling costs | $38,000 |
| Sale price | $625,000 |
| Profit | $84,000 |
What went right: the listing was stale, so the seller accepted well under asking. The cosmetic rehab moved quickly and the house sold fast.
What went wrong: an old insurance claim delayed closing on the purchase, and the roof needed replacing, which wasn't in the original budget.
Lesson: MLS deals exist. Look for long days on market, price cuts, and bad listing photos. But a bigger price tag means bigger risk if something goes wrong.
5. The wholesale deal that almost fell apart (Houston)
Strategy: wholesale Property: 3 bed, 2 bath, 1,500 sq ft, a for-sale-by-owner listing needing a full renovation
| Item | Amount |
|---|---|
| Seller asking | $110,000 |
| ARV | $220,000 |
| Estimated repairs | $55,000 |
| Contract price | $95,000 |
| Planned assignment fee | $12,000 |
| Final assignment fee | $10,000 |
What went right: a motivated seller, a contract with a clear assignment clause, and a fast close once a buyer was in place.
What went wrong: the first buyer backed out two days before closing, and the seller grew nervous. The wholesaler found a backup buyer, but only by lowering the fee to close quickly.
Lesson: never rely on a single buyer. Send each deal to every buyer whose criteria it fits, and keep a backup ready. Our cash buyer list playbook covers how.
What these deals have in common
Accurate numbers matter most. Every deal that struggled had underestimated repairs or time.
Contingency saves deals. Budget 15 to 20 percent over your repair estimate and plan for delays.
Relationships bring deals. Probate attorneys, direct mail, and buyer lists all came into play.
Speed and certainty win sellers. Cash buyers who close when they say they will get the best deals.
No deal is perfect. Even the profitable ones had problems. What matters is having room in the numbers to absorb them.
Put the lessons to work
Before your next deal, run it through our due diligence checklist, check the ARV with sold comps using our ARV guide, and get real repair bids.
Looking for your next deal? Browse Texas wholesale deals on PropPipeline. It's free for investors and wholesalers.