Updated almost 6 years ago on .
Apartment Wholetail Flip
Investment Info:
Large multi-family (5+ units) wholesale investment.
Purchase price: $25,000
Cash invested: $1,000
Sale price: $62,000
Me and a partner bought a 6 unit apartment and a duplex next to it. Both were dangerous spots known for drugs and prostitution.
What made you interested in investing in this type of deal?
My partner got them for a dirt cheap price. I wasn't completely sure about the area, but for the price, worst we could do was break even.
How did you find this deal and how did you negotiate it?
Partner brought it to me from someone he met at a networking event that wanted to sell as quick as possible.
How did you finance this deal?
50/50 cash investment between me and my partner.
How did you add value to the deal?
Nothing done other than cleaning out all the trash.
What was the outcome?
More than doubled our money on it.
Lessons learned? Challenges?
Don't think too long on deals or they will be gone! Challenges included the danger of the area. The apartments were full of drug paraphernalia and condoms. Before we got them sold, someone was murdered right in front of the apartments.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Ellecia Hayes with Hayes Homes and Realty got them sold for us in a little over a month.
