Quick do nothing flip

[William Amiteye]

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Amsterdam.

Purchase price: $30,000
Cash invested: $30,000

This was a wholesale deal that we purchase cash and immediately refinanced. Purchased at $30K and refinanced at an appraised value of $50K. No work done to it. Has tenants so this was an easy deal.

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

Someone came to us with the deal. The price being offered was below market and we knew this will be a quick flip without doing any work so we purchased it all cash and refinanced immediately to get our money out. We walked away with cash on this deal.

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

We advertised on facebook as buyers of properties. A wholesaler reached out to us with the deal. First time dealing with this wholesaler. But the deal looked good so we went for it.

How did you finance this deal?

We had just flipped another deal and used the proceeds to rinse on this one.

How did you add value to the deal?

We didnt. We knew we were being offered this deal at pretty good price. The property was already occupied by tenants. There is some work that will need to be done but nothing immediately.

Lessons learned? Challenges?

If the deal adds up don't hesitate. Go for it. If it is priced such that you can buy all cash and refinance immediately and recoup your cash, its a big win!

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

We mostly don't work with agents on the buy side unless an agent brought us the deal. Otherwise we go with the selling agent and usually we have them also represent us. This tends to give them an incentive as a dual agent. We sometimes get a great deal that way.