Updated about 13 years ago on . Most recent reply
A Must Read Success Story of New Real Estate Investor
From time to time, another hard money lender that we know has a list of properties that he circulates to investors. These are properties that this lender has had to foreclose on due to non-payment on the loans. One of these properties that the lender circulated on his list was picked up by a new real estate investor I know. This real estate investor just starting doing real estate investing in 2012, and has one successful rehab flip under his belt.
The house he bought from the lender was a half completed rehab. Another real estate investor bought the house at auction and used the other hard money lender to make a loan on the purchase. The house ended up needing a lot more work than the investor originally budgeted for. After several missed payments and the house only halfway fixed up, the hard money lender foreclosed on the house.
The new real estate investor bought it from the other lender and used our company to obtain a rehab loan on it. The house still needed another $10,000 to finish the renovations. Within 2 weeks the new investor had the house finished and appraised. He decided to list it at below appraised value and within 1 week he had multiple offers on the home. Only 5 weeks after buying the property from the other hard money lender, the new real estate investor had finished the house and sold it making $16,000 in profit on it! This is only his second real estate deal, so not a bad profit for only having one other deal under his belt.