Bought this short sale and was lucky to sell for a profit

[Tai DeSa]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $210,000
Cash invested: $40,000
Sale price: $306,340

We bought this as a short sale at the height of the housing bubble. We fixed it up and sold it via an auction as the market was shifting downward. We're lucky to have sold it for what we did.

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

We mailed out letters to people facing foreclosure. The seller contacted us.

How did you finance this deal?

We obtained a mortgage loan.

How did you add value to the deal?

We performed cosmetic improvements.

What was the outcome?

We luckily sold it for a profit at an auction just as the real estate bubble burst.