This property was acquired through pre-foreclosure marketing. I received a call from the previous owner who had let the home go due to her husband passing. She wanted nothing to do with it, so I offered her $1,000 cash plus buying out the remainder of her loan if she would be willing to sell it to me. She was happy because she didn't want it to go to auction and she got something for it. When I walked into the home after closing, I was in for a surprise. It required a good bit of work to turn it back into a safe and habitable condition. For 2 months I worked with very talented contractors to restore the property's former beauty. I listed it for rent and found a qualified tenant within 7 days. Shortly after that I listed it for sale.

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

I wanted to gain more experience in acquiring off-market deals. I sent out a letter campaign to a list of pre-foreclosures for the October 2019 auction. I connected with the owner of 1950 Battle Row and kept moving the ball forward.

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

I found this deal through a pre-foreclosure letter campaign. I negotiated a wrap loan (subject to) structure. I agreed to pay the owner $1,000 since all she wanted to do was walk away from the property. Her other option was to let it go to auction and have a severe ding to her credit.

How did you finance this deal?

I financed it as a wrap (subject to) deal. I had to reinstate the back charges to the loan which cost around $8,000.

How did you add value to the deal?

I restored the property to a safe and habitable space. I also placed a qualified tenant in the property for a 1 year lease.

What was the outcome?

We sold the property for a bit under the 1% rule- giving the investor a qualified tenant, a renovated property and a little more margin in the deal.

Lessons learned? Challenges?

I had to fire my general contractor the second week into the renovation. This forced me to step in as the GC- needless to say I had to burn through some inexperienced contractors to finally find good ones. In the end, the project came out very nice- and have a ton more experience for the next ones.

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

I am licensed agent and had my broker list the property. Everyone I worked with was extremely professional. I would be happy to recommend any appraisers, agents, and contractors in the Augusta, GA area whom I worked with on the project- just DM me if you want more information.