Home with a lot of History

[Thomas Magill]

Investment Info:

Single-family residence fix & flip investment in Gastonia.

Purchase price: $90,000
Cash invested: $74,273
Sale price: $221,000

I purchased this property directly from the owner of the property, but was introduced to him from a wholesaler friend of mine who could not make the deal work for her, so she stepped aside and let me work with the owner directly. I eventually gave her $1000 for her helping out. One of the stipulations for the purchase was that the owner's son (who grew up in the house) could come back and look at the property when it was complete. He loved it, and walked me through a lot of memories.

What made you interested in investing in this type of deal?

This is a great area to invest in Gastonia. Large lots with a lot of great foliage.

How did you find this deal and how did you negotiate it?

I found this deal through a wholesaler, but once she realized she couldn't make the deal work for her, she put me in touch with the seller directly.

How did you finance this deal?

I financed this deal with private money

How did you add value to the deal?

This was a very large renovation project that covered almost every part of the project. New kitchen, bathroom, added an owner's suite to the home, new plumbing and electrical, the HVAC worked but I had to replace the coil and duct, refinished floors.

What was the outcome?

This property took a lot of time to sell and eventually received a less than favorable appraisal, so it was a triple. Good money

Lessons learned? Challenges?

I had the opportunity to make the owner's suite much larger but neglected to because I thought the size fit within the context of the home. I was wrong. I should have made it a couple feet wider so the walk in closet didn't impede on the space so much and make it look like an awkward layout. I eventually decreased the depth of the master closet by 18" to open up the space a little. I'm not sure if this is what led to the sale but the sale happened shortly there after.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Just the buyers broker