WHOLETAIL - 846 W Thomas L Parkway Lansing MICHIGAN

[David Hall]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $118,000
Cash invested: $27,000
Sale price: $168,500

This was meant to be a quick wholetail deal. In this market, taking longer than expected only helps!

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

The reasons I took the risk: The property is in a desirable location and the house across the street had just sold for $180k. The cost of renovations was low as I only planned to fix a basement water issue, deep clean the home and swap a few fixtures. My Plan B was sold in if it didn't sell I could rent it for at least 1% of the purchase price.

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

A wholesaler brought me this deal and it had pretty thin margins. I thought the ARV would be around $150k and the asking price was $120k.

How did you finance this deal?

I buy all my deals with a hard money lender who only requires 10% down and I had just sold another flip property so I had the money to do this without a partner (which is my typical model).

How did you add value to the deal?

A light flip, $11,000 total. Fixing the main issues with the house which was grading, water in the basement and the basement being unfinished.

What was the outcome?

Conclusion: This is not a home run project. This was more of a "Wholetail" deal where I put in minimal effort and minimal capital and made a profit. I ended up putting in $23,000 of my own money and made $18,000. The appeal to this deal is it was close to home, a good area, minimal work, no partners needed, and easy to manage while I had other things going on.

Lessons learned? Challenges?

Always use a title company you trust, would have saved me $2500

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

I am a realtor and ran the project myself