Off market contract of sale, held for 6 mo, then rehabbed & sold

[Robert Adams]

Investment Info:

Single-family residence buy & hold investment in Henderson.

Purchase price: $159,000
Cash invested: $10,000
Sale price: $205,000

We bought this off market property through contract of sale/AITD. the owner was behind on HOA and mortgage payments. My partner and I took over, caught them up on the payment and they agreed to the contract of sale for 18 months. We held it with a tenant in place for 6 months. They wanted to vacate so we rehabbed it and sold it.

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

very little out of pocket...no liability as we didn't get the loan

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

my partner knew the owners and we came up with a creative solution. Keep in mind I was 22 years old and my partner was 21 years old.

How did you finance this deal?

The owner did a contract of sale with use. No loan in our names

How did you add value to the deal?

held it while it appreciated, then rehabbed: paint and flooring

What was the outcome?

We sold for a profit

Lessons learned? Challenges?

How to buy off market homes. How to do creative deals with owner financing. and another rehab and flip