Updated about 2 months ago on .
Sub-to deal in Mishawaka, IN
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $55,000
Cash invested: $8,500
Sale price: $88,000
Purchased this property subject-to seller's mortgage. Seller was out of state and retained legal ownership of the property upon the loss of her mother. We negotiated to take over mortgage payment while property was to be renovated. Cleaned and renovated property and sold for profit.
What made you interested in investing in this type of deal?
I have negotiated many creative financing options. This was the best option for the seller and for profit.
How did you find this deal and how did you negotiate it?
I was referred to the seller by an associate that I had assisted with their investment years prior.
How did you finance this deal?
Subject-to and personal funds
How did you add value to the deal?
We cleaned the house out, scrubbed down nicotine walls, replaced flooring, repainted house and kitchen cabinets, replaced countertop and light fixtures throughout.
What was the outcome?
Sold the property for a profit.
Lessons learned? Challenges?
Learned that you need to review contractors work is complete before paying, and that sometimes taking a risk is the next best step.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am a realtor, and have years of construction experience. I was able to oversee and complete most of this property rehab with few hands involved.