Property swap and wholetail

[Ryan MacDonald]

Investment Info:

Single-family residence other investment in San Antonio.

Purchase price: $75,000
Cash invested: $5,000
Sale price: $175,000

Contributors:
Logan Fullmer

Fix and Flip property in extreme distress where we ended up swapping properties with the seller as they didn't want the cash, they wanted rent ready property that could bring in income right away. We found a property they wanted, purchased it, deeded the properties over to each other and then rehabbed the new property for them so that it could be rented.

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

It was my very first deal and I knew based on the asking price from the seller and the area the home was in, it was a grand slam deal.

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

I found it via driving for dollars and sending out yellow letters. At first the owner asked for his price, then said that instead of receiving the money, he wanted a different property that was in rentable shape where he could collect income right away. We went out and found a property that he liked and bought and closed on it ourselves. Then we swapped properties by deeding them over to each other and the managed his rehab on the new property for him.

How did you finance this deal?

I connected with Logan Fullmer who is a local investor in the area and brought him the property as payment for his mentorship and coaching. He used his personal funds to buy and close on the deal.

How did you add value to the deal?

I found the deal in a super hot area of town and helped my mentor Logan with any and all communication and execution items needed to get the deal across the finish line. I stayed involved in the deal the entire time and made sure I contributed to show my value and desire to learn the industry.

What was the outcome?

We swapped properties with the seller and managed the rehab of his newer property so he could have a rent ready property. Once we closed, we listed the property and MLS and sold it to an investor. I ended up gaining a mentor and eventual business partner on the deal along with making a $10K finders fee on the deal.

Lessons learned? Challenges?

I learned how to manage a light rehab and foundation repair on a house. It was very challenging to coordinate the deal between the owner, his son (who was on house arrest in a halfway house in another city) and granddaughter and convince them we were there to help them get what they wanted and do it efficiently.