Quick liquidation with value add benefits for all parties

[Ryan Cadwell]

Investment Info:

Single-family residence buy & hold investment in Shawboro.

Purchase price: $141,000
Cash invested: $32,000
Sale price: $220,000

In collaboration with our client, we expedited the liquidation of their property, which we had managed for years. Initially, the plan was to maintain the existing tenant. However, upon their departure, a window of opportunity opened. Our committed team seized this chance, diligently refurbishing the property before successfully selling it to an owner-occupant. This is a testament to our ability to adapt and deliver valuable outcomes in dynamic situations.

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

We are an integrated company providing investors with opportunities to Purchase, Hold, Renovate, Build, Develop, and Flip properties across all market cycles. This venture enables all parties to reach their objectives and deliver exceptional homes to future owners.

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

This deal was arranged for our management client who wished to sell their asset quickly without having to go through the hassle of the market and without having to deal with any more rental issues. This way, both parties benefited as the deal was within our network of clients.

How did you finance this deal?

Local lenders as it was maintained as a rental until we could flip the property to an owner-occupant product.

How did you add value to the deal?

We successfully addressed our client's need for a swift and seamless exit while keeping the property as a rental asset. Subsequently, we facilitated a connection with a buyer who leveraged the cash flow until the owner-occupant market yielded a positive return on investments. As the end buyers were local, we could provide housing solutions to local residents and keep home ownership a goal for local residents.

What was the outcome?

It positively influenced all parties, expediting the liquidation for our former client while reducing transactional hurdles. The sale yielded a net profit meeting the buyer's return expectations. Adhering to standards facilitated new homeowners' acquisition of renovated homes, fostering the growth of family ownership in the neighborhood.

Lessons learned? Challenges?

Standard lessons include the inevitability of interesting challenges. In this instance, the location posed creative obstacles due to the neighbor's frequent collection of vehicles near the driveway, encroaching on the property at times.

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

Yes, our team of Realtors, Management Professionals, and our contracting capabilities provided all parties with excellent service and endless options.