Whole-tail flip on a mobile home

[Gavin Welch]

Investment Info:

Mobile home fix & flip investment in Lake Wales.

Purchase price: $18,000
Cash invested: $700
Sale price: $34,500

My friend Adrian Smood (also a BP member) called me about a distressed homeowner he met that had a couple of properties he wanted to sell. I purchased this property out of my self-directed IRA and then relisted it on the MLS. The property had marginal tenants and the septic system was overflowing on the ground. I had the septic system pumped and inspected, it was over-flowing from a leaking faucet they never bothered to fix and sold the property in little over a month.

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

Huge margin.

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

My friend Adrian called me with the information.

How did you finance this deal?

self-directed IRA.

How did you add value to the deal?

Just fixed a couple minor things and slapped it back on the mls

What was the outcome?

I made $15,800 profit in 30 days.

Lessons learned? Challenges?

The tenants were difficult to deal with. They had gotten away with murder with the previous owner. Instead of evicting them I left them in place for the new owner to deal with.

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

I am a real estate broker.