Buy fix a bit and sell.

1 Reply

Investment Info:

Large multi-family (5+ units) other investment.

Purchase price: $560,000
Cash invested: $30,000 after purchase. 
Sale price: $895,000

Bought a heavily distressed illegal
Occupancy mixed use 11 unit.  It was a drug house/ with prostitution in full effect.  I put about 5% of purchase price in basic fixes and made a boatload.

What made you interested in investing in this type of deal?

Banks local RE experts, cops, city officials and just about everyone that heard about the deal said don’t do it.

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

Beating pavement.

How did you finance this deal?

My Cash and hard money...check out rock east group   Michael Haberman   He loves the risky stuff   

How did you add value to the deal?

Got rid of all the drug dealers and prostitutes kept the toilets working.

Made the loiterers move on   Rented alL the vacant spaces....7k of 18k was vacant when I bought it.  I even rented parking spaces in my dirt lot for $30. a month and DIY cleaning and snow removal   

What was the outcome?

Good. Could have been better.

Lessons learned? Challenges?

Got a lien from an partner. Learned I should have better systems   More money in reserve   I put down..

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

@sarah hoof @michael Haberman 

@John Hickey reading that I now I see I should have put in my down payment. A little complicated because it was a package deal but I put down around 50% so total

Invested was 310k

On the section where it says lessons learned I was going to add that I put down too much money on the deal and didn’t have enough in reserve.  

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