Flipped this 3-unit right before a Sheriff's auction

[Tai DeSa]

Investment Info:

Small multi-family (2-4 units) fix & flip investment.

Purchase price: $69,000
Cash invested: $1
Sale price: $95,000

My agent showed me this listed 3-unit property in need of work. I made an offer for $69,000. Unbeknownst to me, the seller owed about $60,000 to his mortgage lender and was facing imminent foreclosure. I found a landlord who wanted a fixer-upper multi-unit. He agreed to pay me $95,000. I bought the property days before a Sheriff's auction, and I sold it an hour later.

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

Even though I was a licensed agent, I was working with a great agent who knew the listing agent. My agent brought me the deal and helped negotiate a quick closing.

How did you add value to the deal?

I helped the seller avoid foreclosure and put about $5,000 in his pocket. I sold it to a landlord looking for a fixer-upper multi-unit.