I bought this property from a wholesaler and used a hard/private money loan on the purchase. I partnered with one of my close friends who is a contractor. We did a light rehab which included paint, carpet, fixtures, turf in the backyard, and a new roof.

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

I own a few rentals and it has been hard to find a deal that will work, I help other investor clients do flips, so I thought it was time that I started with the strategy too.

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

I am on a bunch of wholesaler's lists and after analyzing hundreds of deals for myself and my clients I found one that was from a reputable licensed agent/wholesaler and I pulled the trigger. It actually sold to someone else within the first few hours, but the deal fell through and the wholesaler reached back out to me a few days later and I locked it up.

How did you finance this deal?

I financed this deal with a hard/private money loan that was at 90% of purchase and no points, no appraisal, no fees, with a 14% interest rate. The deal was funded in 2 days and I split the down payment and rehab costs with my partner who is one of my close friends and a licensed General Contractor.

How did you add value to the deal?

We cleaned the property up with new paint inside and out, new carpet, new plumbing fixtures, new light fixtures, new turf in the back yard, and a new roof.

What was the outcome?

The outcome was that the rehab cost more than we planned on, we held the property for a little longer than we wanted to, but we made money and are excited for our next deal.

Lessons learned? Challenges?

I learned that I was smart to be super conservative on underwriting the deal, I passed on hundreds of deals before I saw a great opportunity and was able to make a quick decision. We went a little over budget, but since I was so conservative on the underwriting we were still able to make money. I see a lot of deals that make sense if everything goes perfect, but I would not count on everything going perfect.

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

I was my own agent on this deal. I love helping my investor clients; and doing my own deals definitely makes me better at what I do.