The Real Estate Deal Management System: REDMS

[Michael Evans]

Investment Info:

Single-family residence fix & flip investment in Warrington.

Purchase price: $38,000
Cash invested: $46,000

Managed deal for a client. Purchased a distressed property in Detroit (2+1, 744 sf, built in 1954) with a non-performing tenant. Tenant vacated property on 5/7 and now we are preparing the property to be rented by 7/1.

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

This is our first time using the to manage acquiring a property in Detroit. We were able to identify risks, and then manage and shift them, which is exactly what The is designed to do.

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

A wholesaler emailed me about the deal. I negotiated thr purchase price down as well as the EMD ($100) due to the amount of risk my client was taking. It paid off for my client.

How did you finance this deal?

My client paid all cash.

How did you add value to the deal?

I am managing all of the aspects of this deal: acquisition, rehabilitation, rental and sale.

What was the outcome?

We are still in the middle of turning the property into a turnkey rental. We got the non-performing tenant out on 5/7 and are now securing the property so that we can complete any repairs and then market the property to get a Section 8 tenant.

Lessons learned? Challenges?

Perform your due diligence when buying a property with an existing tenant.

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

No.