Single-family residence fix & flip investment in West Palm Beach.
Purchase price: $79,000
Cash invested: $42,000
Sale price: $209,900
SFH with a lien that was 3x the sale price of the property. After fixing code violation I negotiated lien reduction with the city to just 2% of the lien fine. This boosted my profit automatically.
What made you interested in investing in this type of deal?
The potential profit with a lien reduction
How did you find this deal and how did you negotiate it?
Wholeseller, negotiated a few bucks down
How did you finance this deal?
How did you add value to the deal?
Fixed the property, added color, improved landscaping, new roof.
Lessons learned? Challenges?
Taking action and calculated risks is the key to success
That’s awesome! Great job! Were you sure of getting a lien reduction when you purchased the property? Were you planning on doing buy and hold if the lien wasn’t reduced enough?
Thanks @Robert Darling ! while I wasn’t 100% sure, I knew there was a very high probability of reducing it to at least 5-10%. Worst case scenario, I would had hold for sure. Having prepared a speech with statistics and speaking honestly went a long way with the special magistrate in this case. I believe city officials appreciate when investors don’t try to bs them.
Congrats on the flip. When did you submit the application for the lien reduction and when were you scheduled for it? After the purchase was made or after all the rehab was completed?
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