Flipped this bank-owned house with none of my own money

[Tai DeSa]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $70,000
Cash invested: $1
Sale price: $84,000

I saw this bank-owned house listed on the MLS for $59,900. I knew the ARV was $150,000+. Since there were multiple offers, I offered $70,000. I didn't have the money at the time to pay $70,000. I found a cash investor who wanted a house to fix up for his parents to live in. He agreed to pay $84,000. He paid me $84,000, and I used $70,000 of it to buy it. He signed the paperwork an hour later to become the owner. I bought it with none of my own money.

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

It was on the MLS. The asking price is largely irrelevant. It was worth far more than the $59,900 list price. Even though I didn't have the money, I offered $70,000 for it. I found a cash investor who was willing to pay me $84,000. He and I both knew the After Repair Value was around $150,000+.

How did you finance this deal?

I used the investor's money to buy the property and then sell it to him an hour later.