Getting Creative with a 1 Bed 1 Bath
Investment Info:
Single-family residence fix & flip investment in Belleville.
Purchase price: $6,000
Cash invested: $6,000
Sale price: $17,000
I went into the property with the intention of wholesaling it. After talking with the sellers, they had been burned 3 times by wholesalers so I had to change my strategy. I knew I had to purchase this property outright to be able to get it. The sellers were asking 20K for this property and I knew they were looking to move this property quickly.
What made you interested in investing in this type of deal?
I knew that if I could negotiate the property down, I could make money on the deal.
How did you find this deal and how did you negotiate it?
I found this property on Facebook Marketplace. I was able to negotiate the price from their asking price of 20K down to 6K cash.
How did you finance this deal?
I took a loan out for 7000 from Lending Club. I have decent credit and was able to get a rate of 7%.
How did you add value to the deal?
The property still had furniture and items still in it, which I sold on marketplace for roughly 1k. I also cleaned some things up and did some landscaping.
What was the outcome?
I ended up selling the property two times. I advertised the property for 15K and had many people interested in owner financing. I had one guy willing to give me 7K down and pay the rest over the course of 2 years. About 7 months into our deal the buyer said he was moving down to Florida because his mom had passed. I was able to get the house back with about 8K in my pocket. I sold the house a second time to a fix and flipper for 12K.
Lessons learned? Challenges?
I learned a lot with this deal. I wrote my own Purchase contract and figured out all the paperwork for the owner financing deal.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Not on this deal.
