Partner and Renovate to Sell at a Higher Price

[Shiela R.]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $10
Cash invested: $52,000
Sale price: $800,000

Bought this house using a land trust and JV agreement.

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

I wanted to help the sellers who are out of the country and I saw an opportunity to get a signaificant price increase for simple upgrades loke flooring and paint.

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

Friends and passed clients. They reached out bc they wanted to sell. I knew they could get a significantly higher price if they did simple cosmetic things like flooring and paint. They agreed but had relocated out of the country and didn't want to pay for or manage a remodel. I suggested the following: I'd put my own money in for some updates and they would keep the loan in their name but transfer the property (deed) to a land trust where we were all owners.

How did you finance this deal?

Know how on buying with terms ;)

How did you add value to the deal?

My creativity and experience as an investor and knowledge of the market conditions - not just values but construction.

What was the outcome?

The sellers made more than if we listed "as-is". I made more than a commission and the buyers got a much cleaner, better house.

Lessons learned? Challenges?

Always check if a company has been bought when hiring. Had a horrible experience with a flooring company that I had used in the past but had been bought so new ownership. I pulled the attorney card and made them sign and notarize a lien waiver in exchange for final payment.