Light Flip for an Inherited Property

[Mark Ferron]

Investment Info:

Single-family residence fix & flip investment.

Cash invested: $10,000
Sale price: $156,000

I worked with an out of state family in an estate situation. The home had a lot of deferred maintenance and was dated. I sourced and managed local contractors to complete the work for the family. The property sold for above asking price.

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

Helping a family maximize the value of the estate. Gaining flipping experience without using my own money.

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

I go to the courthouse every month and look for people that have could use my assistance. I contact them, set a meeting, and we discuss what their friction points are and how I can help. We discuss EVERY strategy they can use with the inherited real estate. I let them chose the option that best suits them and I facilitate that option.

How did you finance this deal?

From the money in the estate.

How did you add value to the deal?

I provided management, quality control, local contacts, and real estate experience. I was also a contact they could use locally instead of flying out here for every issue that may come up with the estate.

What was the outcome?

For a small investment we were able to maximize the value of the real estate in the estate.

Lessons learned? Challenges?

If the home has been vacant and the sellers don't have a clear knowledge of the homes defects have a very thorough home inspector or General Contractor go through the home with them first to build your Scope of Work. Do your due diligence inspections at this time also (termite, septic, etc.). This would have prevented the surprises that came up during the repairs and the buyer's home inspection. When you select a GC, find out their project schedule and hold them to it.