651 Wedge Way, Warrington, PA, 18976

[Joseph Guckavan]

Investment Info:

Single-family residence other investment.

Purchase price: $25,000
Cash invested: $125,000
Sale price: $239,000

Found a lot that the developer didn't believe could be built because it was near a flood plane. Performed H&H study to show part of the lot is not in a flood zone and got approved to build a brand new house.

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

The price--too good to pass up.

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

Driving through neighborhoods--noticed an undeveloped lot and looked up the owner and called. He actually financed the lot until I obtained a construction loan.

How did you finance this deal?

Owner finance of the lot, construction loan to build then converted to a conventional loan

How did you add value to the deal?

Convinced the town and DEP the property was not in a flood zone. Then built a new house

Lessons learned? Challenges?

Need to move quicker. Money tied up for years holds back the momentum...