Buy and Sell to Reinvest

[Jonathan Pavkov]

Investment Info:

Small multi-family (2-4 units) fix & flip investment.

Purchase price: $145,000
Sale price: $195,000

I purchased this property by calling the buyer and asking if he'd be willing to sell off-market. We agreed to the price and we closed in 2 weeks. I came across another great off market opportunity and decided to sell this to invest the proceeds from selling this into the new property. I was in contract to sell and closed less than 3 weeks after purchasing.

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

I was initially going to invest ~$75k and rent for market rents, but decided to instead sell upon finding a different property to invest in with more potential.

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

I called from a list I pulled off of Franklin County Auditor.

How did you finance this deal?

I paid cash.

How did you add value to the deal?

I simply found an undervalued property and resold it quickly.

What was the outcome?

I made ~$45k after fees, etc. in 3 weeks.

Lessons learned? Challenges?

If I had more time, I would have held onto this property and done the work myself. However, I was pleased with the outcome. My primary strategy is to buy and hold, so this went against that.

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

I purchased this property for cash, and did not use any other realtors for my side of the transaction.