A flip that didn't need much work
Single-family residence fix & flip investment in East Stroudsburg.
Purchase price: $190,000
Cash invested: $10,000
Sale price: $304,900
This was a successful flip involving a partner who put up 100% of the money while I did 100% of the work. We split the profit 50-50. The house was newly built. The motivated sellers sold it for a low cash price, and we didn't have to do much work. I staged the home and tried to auction it. Unfortunately, the auction failed. Then I listed it with a great agent, who sold it for a great price even as the market was falling.
How did you find this deal and how did you negotiate it?
I sent direct mail to people facing foreclosure. We were able to buy this one from motivated sellers who wanted to walk away and avoid foreclosure.
How did you finance this deal?
A busy business owner agreed to invest 100% of the money if I did 100% of the work. We split the profit 50-50. It was a great partnership.
What was the outcome?
We tried to sell via an auction, yet that didn't elicit a big enough bid. It was in a gated community, which deterred some potential bidders. We then listed with an agent, who got us a great price.
Lessons learned? Challenges?
A gated community can be a deterrent to people who want to drive by to check out the neighborhood. An auction in a gated community can result in people not getting into the community due to overzealous guards at the gate.