Updated almost 3 years ago on . Most recent reply
Trashy to Flashy
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $147,757
Sale price: $315,000
This house was filled with trash and discarded personal items. There was a lot of deferred maintenance and deep cleaning needed. This could have very easily been converted into a duplex, but my client chose to create a formal dining room and use the other space as a family room / wet bar. It paid off and they got better than expected return.
What made you interested in investing in this type of deal?
It had a ton of potential! It was in an rural area, making it less viable to other investors which meant for less competitive. The condition was undesirable to home buyers/owner occupants because it's difficult to picture yourself living in a place that was previously so, well, smelly and dirty.
How did you find this deal and how did you negotiate it?
It was a foreclosure listed on the MLS. It was a cash or conventional only, as-is sale. The home sat on the market for 140 days, because the inside was not viewable until the occupants were out. So, we had to wait it out. Also, the cooperating buyer commission was very discounted for our area, so it probably didn't hit as many agent searches as it should have.
How did you finance this deal?
I procured a 3rd Party Private Financier
How did you add value to the deal?
Purchase and Selling Strategy! As their real estate agent I help assess the home prior to the purchase and negotiate the best deal possible. They figure out what the potential resale will be. This wasn't an easy one because it was rural and not too many comps to choose from, but I know this client's work very well and was able to gather enough data to make this a profitable and success investment for them!
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, I am the real estate agent on this deal! I love being a part of the real estate investment team for my clients!
Most Popular Reply
You did a great job for your clients! I love how you helped them handle every aspect-including the financing. This client will probably lead to several good referrals becuase of how well you handled this transaction. Keep up the good work!