Vacant house impacting sellers marriage

[Kim Martorana]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $75,000

Zillow listing. Seller wanted home gone it was causing marital strife; vacant and an expense. Realtor knew I could find a way to offer at sellers price.

ARV $125,000. Buying with a Land Contract agreement with no down payment and I just cover the current mortgage payment; $512/month. Rehab is 10-12k, less than a month and list to sell at $145,000. Under Land Contract I must sell or refi within 6 months of listing date; I have 7-8 mos now.

OPTION A - profit from flip around $30,000.

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

Low rehab, hot area and seller was flexible with structuring a winning deal so long as they got $75,000

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

Realtor who works with investors and I have already bought one other great deal from her.

How did you finance this deal?

Land Contract with my only obligation being to pay the mortgage of $512. Using my own $15k or less to cover the cosmetic rehab.

How did you add value to the deal?

House is a generous size with a nice yard and detached 2 car garage; great family house. Value added is going to all updates from kitchen, bath, paint, flooring and lighting fixtures.

What was the outcome?

Attorney drafting the Land Contact and I hope to have it signed by all on August 17, 2020 and to take ownership on that date, too.

Lessons learned? Challenges?

Found a new financing method for my “tool kit”.
Challenge was finding the seller’s real reason for the sale and then solving for “X”. In this case, the negative cash flow was causing marital issues, so I just offered to pay the mortgage which frees them up money monthly.

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

Noel Hall, realtor with Keller Williams Citywide, Cleveland OH.