First real estate purchase.
Investment Info:
Single-family residence other investment.
Purchase price: $3,000
Cash invested: $3,250
Sale price: $8,000
This house in Charleston, WV was a complete disaster. Deeds of trust/ Liens on the house. City involved. Homeless camp. Complete gut that we didn't renovate. Some call it wholetailing, but in my area we call it deed flipping.
What made you interested in investing in this type of deal?
The young man who is my mentor messaged me and said "its a 3000 dollar house you can't lose, if you want to pull the rip cord call me and I will buy it for whatever you have in it.
How did you find this deal and how did you negotiate it?
It was was listed on FB marketplace and sent to me by my mentor. Really wasn't much negotiation it was a 3000 dollar house. I paid asking.
How did you finance this deal?
My own cash.
How did you add value to the deal?
I cleaned it out. A homeless guy was using it as storage. There was about 4 dump trailer loads of belongings in it. I negotiated with the city to get it off the demo list and also negotiated with the bank to get the deeds of trust satisfied/removed.
What was the outcome?
I sold it for 4000 down and 334/mo for 1 year for a total of 8008 dollars.
Lessons learned? Challenges?
I honestly think this was more valuable than paying for a coach. I had no clue what I was doing. The previous owner quit claimed it to me and I didn't have my own attorney verify anything. I asked his attorney if they had done a title search and they assured me it had. Come to find out it was used as some of the collateral in a 240k loan that was in default and the bank held a deed of trust. There were also city liens on it. I had to get the bank and the city to release their claims.