Flip This House Redemption Rights

I received a phone call a few months ago from someone  who found my name and phone number on the internet.  He wanted to know home prices in a subdivision in Rio Rancho.  As we talked more, he knew of a home that had been sold at the auction at the county courthouse.  He told me how much the home sold for and I told him it could be a good investment depending on the home and the condition of the home.

The big problem was he did not have the money to buy the home and was not sure how to proceed.  I explained that I had money and there were many ways we could both make money on the property.

I have flipped many homes for sale in Albuquerque and Rio Rancho.  At the right price, every home is a great deal.

About a week later I received a call from his brother.  They knew of this home and said they could get in touch with the seller and purchase the redemption rights.

I met the owner of the home and it looked like a good investment.  I was interested in purchasing the redemption rights, however, I had no clue how to purchase redemption rights.  To complicate things a bit more, the home was purchased by a large investor at the courthouse steps.  To make it more complicated, we only had one day to redeem the rights.

I found an attorney that claimed she could get this all done in one day.  I was skeptical but met with her.  The large investor that purchased the home would not return our phone call.  Ultimately she filed several documents at the county courthouse and I took a cashiers check to the courts.  The cashiers check was for their purchase price, and estimate of the interest owed to them by state law, then a few thousand more just to make sure.

The original investor that purchased the home at the auction was not very cooperative.  However, my attorney had filed all the proper paper work and after a few months of wrangling with the large investor, I ended up with the home.

There are several lessons learned here.

I did not know what I was doing and realized it.  It is always best to hire the right people when you are over your head.  But I knew it was a good deal and I made the commitment to purchase this home and said to myself, I will figure this out as I go.  

The large investor made a huge mistake by not purchasing the redemption rights after buying the home at the county steps.

I was not greedy and worked with the owner of the home to settle on a fair price for the redemption rights.

I have a new tool in my arsenal to help buy distressed properties

I purchased the home as a flip property and the home is now on the market.  The flip consisted of interior paint, carpet, appliances, light fixtures, door hardware, garage door, roof repairs, exterior paint, and the exterior wood needed some love.  The time to flip the home as 13 days.  

Below are some pictures of this flip.  Looking forward to selling this home, making a profit, and buying more flippers.  It is getting harder to buy foreclosed homes for sale in Rio Rancho at a price that allows a profit on flips.

We buy homes for cash in Albuquerque NM at Myers & Myers Real Estate.

Good Luck and Good Investing