Hoarder House - The Smell of Profit!

[Quillan Houser]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $50,000
Cash invested: $110,000

Off market hoarder house foreclosure in a highly sought after neighborhood near the schools. Purchase price $50,000.00, estimated rehab $110k, ARV of $275k. You could smell the nastiness from the street. I walked in, saw the major mess, took in the horrific smell and thought "that's the smell of profit". The only things hoarded are trash and eviction coming soon on the small critters hiding in the junk. Estimated profit - $95k.

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

I've never been afraid to take on big projects. Other people looked at it in disgust but I can look past the junk and see the finished project to determine profitability.

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

Our broker was going to be listing it but I negotiated the contract before he did.

How did you finance this deal?

I contacted someone I knew that had the cash for the purchase and rehab cost. I presented them the deal and was immediately told they were in.

How did you add value to the deal?

I found the deal, negotiated it, and I'm managing all aspects of the project. I make all decisions for the rehab and will be listing it when we're done.

What was the outcome?

No outcome yet since we're cleaning it out and will have demo done by this weekend. With a high estimate on the budget we should make about $95k.

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

I am a real estate agent and have experience with fix and flips.