Flip to Hold in Zion, IL

[Chris Varsek]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $95,000

Helped a local investor group find this off-market property via an estate of the late owner. Bought for $95,000, and helped the investors to source reliable tradespeople. ARV is @ $235k after renovations are complete, however the group has held onto this one for cash flow.

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

This was found for an investor group that was looking to source a local off-market deal to add a cash flowing property to their portfolio.

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

This was purchased from an estate, one of my clients notified me of the opportunity and I presented to the investor group.

How did you finance this deal?

The investor group used cash on hand for the entire thing, then leveraged cash back out after renting it.

How did you add value to the deal?

The group replaced an actively leaking roof, and many, many other significant issues.

What was the outcome?

It was a great outcome - it is now cash-flowing north of $500/mo and they retain equity over $65,000.

Lessons learned? Challenges?

Have your electrician come and check out the wiring before doing the deal!

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

I was the real estate professional working in an advisory role on this one