Foreclosure fix and flip

[Melissa Murphy]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $80,000
Cash invested: $135,000
Sale price: $172,500

Opportunity to add value after distressed seller. Purchased at auction owner occupied.

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

Watching the auction, we found this opportunity and found it valuable because of the huge two car garage.

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

Purchase for cash at the auction.

How did you finance this deal?

Cash for the acquisition and cash for the renovations.

How did you add value to the deal?

When purchased at the auction, the owner was still residing in the property. Water and power had been shut off to the property for over a year, so we were fearful of the condition. After contacting the owner, we discussed cash for keys. He was open to discussing versus a formal eviction. Our crew helped him move to his next spot.

What was the outcome?

After helping the previous owner move, our crew completely renovated the space top to bottom. The extensive work was impressive from new electical, sheet rock, plumbing, windows, etc.

Lessons learned? Challenges?

Our crew has a hard time cutting corners. We need to focus on a higher price point, because our crew creates a superior product for the price point.