Council Bluffs Wholetail

[Owen Dashner]

Investment Info:

Single-family residence wholesale investment in Council Bluffs.

Purchase price: $67,500
Cash invested: $1,500
Sale price: $103,500

Off market (PPC) lead from a seller who did not want to deal with being a landlord anymore. The house was in Council Bluffs, Iowa and needed quite a bit of work, but we were able to buy it with a decent amount of equity. We ended up wholetailing it on the MLS for $103,500, minus about $4K in closing costs and concessions. We ended up netting about $25K on the deal after all costs were taken out. On to the next!

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

Love wholetails in a hot market. We could have made probably $15-20K more by rehabbing this property, but it would have taken 3-4 months from key to key, so we took the quick $25K profit and moved on.

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

The seller owed about $60K on his mortgage and needed enough to pay it off plus a few bucks. It was a good deal at that price, so we took it.

How did you finance this deal?

Line of credit with 5 Points Bank.

How did you add value to the deal?

We replaced the fuse box with an electric panel for $1500.

What was the outcome?

$25K profit, sold it as-is to a DIY homeowner.

Lessons learned? Challenges?

I had told our electrician to replace the fuse box when we first bought it and thought we were going to rehab it. I then forgot to tell him to not do it when we decided to sell it as is. $1500 forgetfulness tax. Whoops.

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

Jay Kathol with Berkshire