They saw a beast, we saw the beauty!

[William Bratrud]

Investment Info:

Mobile home fix & flip investment in Wildomar.

Purchase price: $110,500
Cash invested: $72,000
Sale price: $288,000

This was a highly neglected and undermanaged rental property in need of full rehab and then some. This was an all cash deal due to condition and non permanent foundation. We purchased directly through the listing agent offering her a double commission plus the listing once completed. There were Lots of surprises once acquired, ( Rat infestation in AC ducts, bad galvanized plumbing, No permits, leaky roof, foundation issues, stray cat infestation, windows falling out, opossum infestation.

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

It was disgusting and everyone else was afraid of it, like usual we saw the potential while others saw only the problems.

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

We Found this junker on Zillow and made an all cash offer directly through the listing agent. I also Sweetened the deal by offering the agent the contract to sell it once we completed the rehab.

How did you finance this deal?

100% Financing for this monster and it’s rehab was provided by Cash from a private investor who trusts us and has done many deals with us over the past couple of years.

How did you add value to the deal?

What I brought to the table..... I found the deal, created the rehab budget and profit analysis, negotiated the acquisition, then provided and managed the rehab crew and sub contractors for the duration of the project.

What was the outcome?

We ended up netting just over $75K when it was all said and done. Our private investor received 25% of those profits as his ROI.

Lessons learned? Challenges?

Our HVAC contractor ran off with $2500 that we paid him upfront before he completed the work. Be careful with the lowest bids and don’t trust everything people say even if you know them and have used them several times in the past. never pay a contractor in full before the job has been completed, don’t make things personal.....remember it’s just business

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

We worked with Jessica Woldanga from reliable realty as our agent in this deal. She did a great job helping us negotiate with the potential buyers for the highest price. I would recommend her to anyone looking to sell their home for max value in Southern California specifically in Southwest Riverside County.