Quick Hanahan Purchase and Resale

[William Weaver Jr]

Investment Info:

Single-family residence fix & flip investment in Hanahan.

Purchase price: $190,000
Cash invested: $33,780
Sale price: $251,000

Quick purchase and resale in Hanahan, SC. With this deal, we were able to help the seller avoid foreclosure, HOA liens, tax liens, payoff massive debt such as law school student loans, and most importantly, move forward with their life. It doesn't hurt that we made a nice $17K+ net profit in the process.

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

This type of deal seemed interesting because the seller was very motivated and the property required very little work. The seller owned this property outright and owed no mortgage.

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

This deal was a lead that I received from one of my Google Adwords PPC campaigns. The keyword searched was "sell my house fast charleston." This property took some creative negotiation as the seller had offer from Jeff Cook Real Estate and Matt O'Neal Realty. I was able to gain an edge and lower the seller's asking price by offering to cover late taxes, HOA fees, and take care of any and all repairs. I also built a stronger sense of rapport with this seller compared to the other agents.

How did you finance this deal?

I choose to work with Rehab Wallet, a local Charleston hard money lender, on this deal. They required 2 points originations, 5% down, and 12% interest due monthly.

How did you add value to the deal?

This deal did not require much work. To get this property market-ready, I contracted a variety of cleaning services such as move-in/move-out house cleaning, carpet shampoo/detailing, power washing, landscaping, and junk removal services.

What was the outcome?

Outcome - We were able to get the property contracted in 1.5 months and closed in less than 3 months. We made a net profit of $17,043 on this quick purchase and resale.

Lessons learned? Challenges?

There weren't many challenges with this property. There were a lot of showings but many potential buyers turned down this property due to the amount of updating/work that needed to be done. Fortunately, Charleston is still a hot market so we were able to lock in a buyer even without making major updates. One challenge deal with the 90-day flip rule which unqualified the buyers for FHA financing. Fortunately, the buyers were able to obtain last-minute 5% down conventional financing.

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

We used US Realty (www.usrealty.com) to list our property on the MLS. This service requires a small, upfront flat-fee ranging between $99-250 and 0.5% at closing.