I found a deal on the MLS and made my client a ton of dough.

4 Replies

Investment Info:

Single-family residence fix & flip investment in Oak Park.

Purchase price: $90,000
Cash invested: $70,000
Sale price: $240,000

I represented the investor on the acquisition and listing on rehabbed property.

How did you find this deal and how did you negotiate it?

On market (MLS) deal. It was listed at $130k and negotiated it down to $90k.

How did you add value to the deal?

Marketed the property and received multiple offers.

What was the outcome?

Relisted and sold for $240K

Lessons learned? Challenges?

When list price is lower than area median, the buyers typically ask for seller credits.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am an agent.

Originally posted by @Aaron Mitchell :

Investment Info:

Single-family residence fix & flip investment in Oak Park.

Purchase price: $90,000

Cash invested: $70,000

Sale price: $240,000

I represented the investor on the acquisition and listing on rehabbed property.

How did you find this deal and how did you negotiate it?

On market (MLS) deal. It was listed at $130k and negotiated it down to $90k.

How did you add value to the deal?

Marketed the property and received multiple offers.

What was the outcome?

Relisted and sold for $240K

Lessons learned? Challenges?

When list price is lower than area median, the buyers typically ask for seller credits.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am an agent.

 Now, that's the kind of story I like to hear about. Congratulations!

@Aaron Mitchell

Great story.  I'm a little slow, in re-reading your comment, "When list price is lower than area median, the buyers typically ask for seller credits".  I'm not understanding it, can you elaborate please.  

Meaning that when the list/contract price is lower relative to median sale prices, the buyers often don’t have a ton of savings for closing costs and frequently  ask the seller to contribute. 

In other words, if a buyer is cash poor they may ask the seller to pay for transactional things like closing costs.

Copy.  So having a big profit margin, you will need to be flexible and possibly willing to help with these requests ultimately cutting into your margins.  Let's just hope then that the l margins still make sense.  Thank you

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