Made 41K On House That Needed to Be Torn Down

[Melanie Hartmann]

Investment Info:

Other other investment in Baltimore.

Purchase price: $18,000
Cash invested: $21,000
Sale price: $65,100

The house needed to be torn down. I purchased this house for cash, did minimal work, and then listed it on the MLS and sold it to a builder.

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

The price I was able to purchase it at.

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

We found this deal via cold-calling. We reviewed the comps in the area and made an offer. Upon viewing the property with the owner, it was evident that it was in much worse condition than anticipated and we were able to renegotiate a price.

How did you finance this deal?

Cash

How did you add value to the deal?

We paid someone to board the front door and mow the grass while it was in our possession.

What was the outcome?

We made approximately 41K on this deal.

Lessons learned? Challenges?

That there is a lot of value in land, depending on the area.

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

Yes, a real estate agent did a flat rate listing fee for this property for us.

[Daniel M.]

This sounds like a spectacular success - congrats.  We moved to Maryland last year from Texas and I am now getting back into looking at real estate.  If I could just find a few deals like this ......... great.