A Nasty quickie in down town Riverside

[Michael Nugent]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $140,000
Cash invested: $10,000
Sale price: $200,000

This 3 bedrooms, 1 bathroom home is ready to sell. This property measures around 1,006 sq. ft. but the title shows only 660 sq. ft. The lot is around 6,700 but it feels a lot bigger.

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

The property was the Nastiest on the block and the price very attractive

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

A good agent I know presented me with the deal. It was a pocket listing. The price was originally $120,000 but it was suddenly increase when a neighbor made an offer. Both of us offered the same thing. The only difference is that I was there first and when I met the seller directly we had good chemistry.

How did you finance this deal?

I used cash

How did you add value to the deal?

I hired a good friend to clean it up. This home use to be a homeless and druggie house invested with rats and bugs. We managed to fill up 10 large containers with trash. Cleaned the interior with about 20 gallons of bleach and water and taped it myself to only find out the square footage was more than what was listed on title.

What was the outcome?

I listed it for $190,000 and sold for $200,000. This was a Quickie. I only held on to it for a total of 44 days from acquisition and close and made $43,500.00 before tax.

Lessons learned? Challenges?

I learned not to jump right away on the 1st offers that arrive. Be patient and let it season for at least a week.

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

Yes, I worked with Realtor Brenda Martines with better homes and gardens. She is amazing to work with and made it a very smooth transaction.