Investing in a short sale condo

[Joyce Woods]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $92,000
Cash invested: $15,000

This 2bedroom 2 bath condo was a short sale. It was listed at $82,000 after 6 months in a bidding war with 5 contenders our bid was accepted. The possession was immediate. The upgrades included new hardwood floors, painted throughout, (previous owner had begun upgrades which included new doors, new bathroom sinks, decorative trim, mirrored closet doors). Windows replaced after residing for one year

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

The neighborhood is in a prime area, near transportation, well maintained building

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

This property was listed MLS, my agent Sharon Wharton suggested I take a look. Upon first impression I was determined to close on this deal. After 6 months of negotiating with the bank and outbidding 5 other investors the condo was purchased all cash

How did you finance this deal?

All cash

How did you add value to the deal?

By upgrading floors, updating kitchen cabinets

What was the outcome?

Added value and eye appeal

Lessons learned? Challenges?

Short sales are difficult to negotiate. Make sure the foreclosing bank agrees to the short sale up front

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

Yes, Mrs Sharon Wharton was a diligent agent