Friend headed toward foreclosure and asked me to step in to help.

[Krista Goodrich]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $140,000
Cash invested: $20,000
Sale price: $255,700

A friend's son was over a year behind on payments and facing foreclosure. They came to me to see if I could help. I had the son add me to the deed, brought the property to current, moved him out in thirty days (we pre-agreed on that), did a minor renovation, sold the property for a great price for the buyer that still yielded me an exceptional return. Paid the son 10% of profit so he had some money in his pocket.

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

When my friend brought me the deal it was an obvious winner. I just needed to make sure my friend and her son were comfortable with how it would play out and not have resentment. It was a win-win. The son avoided foreclosure and had some money to get a restart and I made an excellent return in investment.

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

This deal was brought to me by a friend that knew I had the knowledge and means to help. This is why it's a great idea to put yourself out there. Facing foreclosure? Reach out, let's see if I can help so we both walk away with money.

How did you finance this deal?

HELOC and cash.

How did you add value to the deal?

We did a minor renovation of painting, repairing wall damage and a few doors. We replaced some appliances and fixtures. Nothing major.

What was the outcome?

We sold the house and closed in less than 60 days from listing date. The buyer got a great deal.

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

I was the agent and used my contractor and title professional.