Buying a property from another investor

4 Replies

Investment Info:

Other buy & hold investment in Manassas Park.

Purchase price: $205,000
Cash invested: $21,000
Sale price: $234,900

3 bedroom 2.5 bath townhome that has a spacious kitchen lots of cabinets and gorgeous granite. The property has a fence and a patio with plenty of room for a barbecue party. It is located in the Manassas Park Village and only 10 minutes away from Downtown Old Manassas.

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

I got interested in this deal because the location of the property is ideal for rentals.

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

My previous real estate agent had an investor who is flipping this property and would like to find a buyer before the property gets completed. I guess the investor wanted an assurance of a quick turn around, so he could move-on to his next project. We looked at the property while it was still under renovation and told my real estate agent that I am interested of buying it.

How did you finance this deal?

Personal financing.

How did you add value to the deal?

Since the property was completely renovated when I purchased it, I just added the regular cosmetic updates with granite, new paint, and carpet.The investor whom I purchased the property from had already changed the value of the home by creating a third bedroom and a half bath on the first floor.

What was the outcome?

When we sold the property, we placed it a little above the average comps and we got an offer in a week. Another investor purchased the property to hold as a rental.

nope, you are not missing anything. since i am new to this, i guess for me any positive return is a good turn-around. My capital invested in the property was 21k, and I had positive monthly rental; held the property for 2 yrs. Decided to sell it after 2 yrs because i saw another opportunity. the real estate broker offered me a reduced commission fee since I decided to work with her for another possible property. So I received a few additional couple of thousands extra; for me, it's not a bad place to start. I know others have returns that are in multiple digits. Hopefully someday I'll get there too. Any advice on how to get there? thanks! :)

 

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you