Iske Drive Wholetail in Bellevue, NE

[Owen Dashner]

Investment Info:

Single-family residence wholesale investment in Bellevue.

Purchase price: $166,000
Cash invested: $1,000
Sale price: $215,000

This unique older property on a new foundation with a well, septic and propane furnace. Cosmetically distressed with a lot of room for upside, but good margin selling as-is.

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

We love these kind of deals. Cosmetically distressed houses in great areas that we can price below the cost of new home construction, and have multiple exit strategies.

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

Direct mail, we offered a quick close with delayed possession (which was the key factor for the sellers of the house). We got a good price, they were able to take their time in finding a new house and getting everything moved.

How did you finance this deal?

Line of credit

How did you add value to the deal?

Minor repairs to deck and a good cleaning

What was the outcome?

Good profit, not much expense other than holding costs, which were offset by renting it back to the previous owners.

Within 2 days of listing, we had 24 showings and 2 offers. One was at asking price, and one ended up coming in $5K over asking price. We are still in escrow and working through the pre-closing process, but this ended up being a really good deal (knock on wood).

Lessons learned? Challenges?

I messed up on not getting the well checked out before we bought it. It turns out that it used to be a community well, and is actually not even located on the property. It is on a neighboring property that happens to be a cemetery. The challenge is, the previous owner did not have much of any info on it, so now we are in the process of getting an easement so the new owners can access the property. This is a new one for me.

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

As always, we worked with Angie Thiel at Berkshire as our selling agent, 5 Points Bank as our lender, and Missouri River Title handled the closings.