Wholetail in Chattanooga

[John Stewart]

Investment Info:

Single-family residence fix & flip investment in Chattanooga.

Purchase price: $90,000
Cash invested: $1,700
Sale price: $97,000

Wholetail!

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

We are not all that interested in this strategy, but it came up and we jumped at the opportunity.

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

Handwritten letter

How did you finance this deal?

Private money!

How did you add value to the deal?

We did not!

What was the outcome?

walked with a decent amount of money, could have done better, but not with only 2 months and no work done.

Lessons learned? Challenges?

I sold it to a friend and because of that was not a vigilant with my negotiations as I should have been. The deal was losing money because the rent was not covering the interest I was paying to an investor. Because of that, I needed to sell it quickly. I was talked below my bottom dollar because I knew that I was not going to be able to spend much more time finding a new buyer.

The deal worked out in our favor, but I can see how it may have been a big headache if it had gone differently.

[Michael Leeson]

@John Stewart Did you close on the property yourself before re-selling?

How did tax implications work out?