Flip - Residential to Commercial

[Brandon Michael]

Investment Info:

Single-family residence other investment in Nashville.

Purchase price: $250,000
Cash invested: $5,000
Sale price: $350,000

Closing at a Closing! Made a deal with the property owner that I would change the property from residential to commercial and buy when that was executed. I was able to line up a buyer to purchase it from me for $100,000 more than my purchase price. It was the easiest money and the deal was a win for every party involved. The property was 5 acres that had a small house on it in an area that was located by a school and a state park.

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

The deal itself. Just wanted to prove to myself that I could get in and get out with minimal liability and investment.. not to mention minimal time applied to make the deal happen from start to finish.

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

Just driving in the area one day and saw a for sale sign. After speaking to the owner, I knew that she was flexible on making a deal. She wasn't hurting for the money, yet she wanted to cash out soon.

How did you finance this deal?

Zero financing!!! Closing at a closing!

How did you add value to the deal?

I was the deal maker (connector) in this equation.

What was the outcome?

After 6 months of waiting and minimal paperwork, I showed up at my closing attorney's office with $1 in my pocket and walked out an hour later with $100,001 in my pocket.

Lessons learned? Challenges?

When people are flexible on terms and there are reasonable terms agreed upon, everyone can win!

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

Jake Brooks helped me throughout this deal and used his expertise to help me navigate to process of turning a residential property to commercial.