Libery Missouri Flip

[Brock Thomas]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $150,000
Cash invested: $25,000
Sale price: $210,000

Purchased this property subject to the existing financing. It was a simple rehab of just paint, flooring and a handyman scope. I used the prior owners insurance to get a new roof with no money out of pocket. This was a win-win-win deal. I stopped a foreclosure from going on the owners record and gave them walking money, made money on a flip and gave a buyer a nice house.

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

It was in a high demand price range and great school district. The seller was willing to let me buy this property subject to their financing.

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

SEO/ PPC marketing. This was a divorce situation so it was difficult to get them both on the same page. It took a little patience but being direct and honest got this one done.

How did you finance this deal?

Subject to the existing mortgage.

How did you add value to the deal?

Cosmetic updates including paint (inside & out), flooring throughout, some updated light fixtures and hardware.

What was the outcome?

Net profits were around $25,000 with only a few trips to the property. There were 6 offers in the first few days it was on the market. We were under contract for $215,000. Covid-19 scared the buyer and back ups had moved on. Once it relisted it sold quickly to a strong buyer.

Lessons learned? Challenges?

I want more subject to deals. The challenge was working with the husband who didn't want to communicate unless he needed something from me.

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

I am the agent. I worked with a friend to create a very profitable marketing program. The profit is in the people/ connections