The Warehouse - Council Bluffs Wholetail

[Owen Dashner]

Investment Info:

Single-family residence wholesale investment in Council Bluffs.

Purchase price: $136,750
Cash invested: $2,200
Sale price: $170,000

Contributors:
Brandon Tauber

"The Warehouse". This was a PPC lead that came in from an owner who had a new home under contract and was out of time and money to get this one ready for a retail sale. We called it "The Warehouse" because it is gigantic and has a weird layout, with kind of another unit, a huge garage and some mystery tunnels/storm shelters as an added bonus. Not a bad house, just a really bizarre layout.

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

This was an off market deal from a very motivated seller. We offered cash with a fast closing and delayed possession, which made them very happy.

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

This was a PPC lead, we were able to quickly reach an agreement on price and timing that worked for both sides.

How did you finance this deal?

LOC

How did you add value to the deal?

All we really did was clean it out and clean it up. But the cleanout was LARGE. It took $2,000 to get everything cleared out.

What was the outcome?

We listed it as an as-is fixer, and we got a cash offer over asking price of $170,000 with a 2 week closing. Done!

Our net profit will be right around $25,000 on this one.

Lessons learned? Challenges?

Honestly, we kind of took a flyer on this one, not really knowing how to price it when we went to sell, and knowing that we were taking a bit of a risk since it was such a unique house. Fortunately, the hot market prevailed.

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

Jay Kathol with Berkshire listed it for us and helped us get it sold for over asking price.