Making a "no-fear" offer

[Travis Clyburn]

Investment Info:

Single-family residence fix & flip investment in Park Hills.

This is a bank owned foreclosed property that I purchased which will be receiving a full rehab from full interior and appliances to landscaping. Projected completion date March 2019. Quiet street 3 BR, 1 BA and Galley kitchen , large dining room, and large lot with detached garage.

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

I enjoy working on projects and knew that with me and some friends, this house would be a real show place with some work. I figured if I could buy it worth the money, there was a potential for profit.

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

I found this property while driving around looking for properties that looked like they needed improvement. I recognized a city sticker on the door as being not approved for residence due to condition. I discovered it was foreclosed and bank owned. I made an offer that I knew would NOT be accepted, but it was.

How did you finance this deal?

I paid out of pocket. This was from the proceeds from me selling an extra car I had.

How did you add value to the deal?

Projected: New furnace, A/C, wiring, all new flooring, new windows, total kitchen replacement and move walls, total bathroom replacement and change the doorway direction to maximize room, Lift porch (mud jack) to level and cover with outdoor tile, landscaping and terrace the back lawn, new roof for the garage.

What was the outcome?

Projected March 2019 completion date! Real estate agent recommends an asking price that will help me realize a good profit based on the selling price of comparable properties on this street.

Lessons learned? Challenges?

I may take on a partner to stay on schedule. It will also put a little more pressure on me to push through knowing that there is more that just my money invested.

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

I have 2 agents that I have been dealing with on this property. I called one to show me the house the day I saw it and she wrote the offer and submitted it. I had never worked with this agent but she helped a lot because there were competing offers. Although I did not change my offer, I still got it. (I believe the asset manager at the bank wanted to scare me into making a bigger offer- I did not alter my offer). I used my regular agent for projected sales price and listing when completed.