Small CB Starter, Big Profit

[Owen Dashner]

Investment Info:

Single-family residence wholesale investment in Council Bluffs.

Purchase price: $83,000
Cash invested: $500
Sale price: $119,000

Contributors:
Brandon Tauber

This owner of this Council Bluffs house was referred to us by a friend of hers who owned a house that we offered on, but did not buy. This small starter house was in good shape, especially on the inside. Really the only thing we did to the house was add mulch to the landscaped areas to give it some curb appeal, then cleaned the inside. We listed it for sale 2 days after we bought it and received a full price offer after several showings.

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

The seller of the house was motivated and wanted to sell quickly. The house had good room for profit without a lot of rehab needed, a good wholetail candidate.

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

We offered on a different house in Papillion (but did not get it). The owner of that house really liked us and ended up referring us to her friend, who was the owner of this house. We paid out a $500 referral fee, which she was thrilled to receive. The asking price was $90,000. We offered $83K cash, and she accepted.

How did you finance this deal?

We bought it using our line of credit.

How did you add value to the deal?

Added mulch and did a little cleaning.

What was the outcome?

We sold the house for $119,000 after a couple days on the market and a bunch of showings, giving us about a $30K profit.

Lessons learned? Challenges?

This was a really smooth transaction, so not really much in the way of challenges. Lesson learned: Always do the right thing with sellers. The person who referred us this deal was so grateful for the advice we gave her about selling and moving, that she raved about us to her friend and we got this deal. Also, referral fees work!

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

Jay Kathol with BHHS was our agent, 5 Points Bank for the LOC.