Single-family residence wholesale investment in Seven Lakes.
Purchase price: $1
Cash invested: $1,028
Sale price: $40,000
Abandoned 4 bed/2 bath in HOA. Wholesale. Double closing. Home had 2 liens which we were able to get assistance from the lien holder to clear.
What made you interested in investing in this type of deal?
My family home is close by. we found it on a walk.
How did you find this deal and how did you negotiate it?
We found the home while going for a walk. I looked up the owner of the home, it was owned by the HOA we live in. I contacted HOA and they told me to make an offer. my initial offer was 10k. 2 days from closing I was notified of 30k worth of liens on the home. the home in its current condition was worth more than 30k so I told them I could pay them 1$ and I would assume the liens. I closed on the property with the liens. I then sold the home using facebook and cleared the liens at closing.
How did you finance this deal?
I received a 10k unsecured loan from my mentor.
How did you add value to the deal?
no value add was done.
What was the outcome?
Home was sold for 40k, after clearing liens we walked with just shy of 10k. Total ROI 986%
Lessons learned? Challenges?
Being able to negotiate the purchase price causes an astronomical jump in ROI on the back end.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Attorney, John Ritter in seven lakes NC
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