Out of State Purchase Success Story

[William Bratrud]

Investment Info:

Single-family residence buy & hold investment in Oak Ridge.

Purchase price: $100,000
Cash invested: $65,000

Purchased from an out of state wholesaler. There was plenty of meat on the bone so we made it happen. so far it has proven to be a great performing asset and we have plenty of equity in this red hot market!

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

I was referred to this deal by a friend who knew the wholesaler that was offering it for sale. At the time i was living in another state so the price point was very attractive considering similar homes in my area were selling for 600K+ at the time.

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

This came by referral from a friend at a networking group i was attending. My friend heard i was moving to TN so he put me in touch with a wholesaler from Florida who had this property under contract in TN. I called the wholesaler and asked him what he was looking to get for the contract, he indicated 100K so I ran some numbers and called him back 20min later to lock it up.

How did you finance this deal?

We paid cash

How did you add value to the deal?

Main issue with this property is that the previous owner had died and was a hoarder so four 30 yard dumpsters later she was ready for some flooring and paint. We added a bedroom and a kitchenette in the basement as well as a complete remodel of 1 bathroom and pretty much just spiffied up the rest.

What was the outcome?

We have the place rented at $1800/mo. After all is said and done we got 100% of our cash out and she cashflows around $600/mo. after all expenses

Lessons learned? Challenges?

Hire the right contractor. I gave a new kid a shot at painting the interior, needless to say we had to paint it twice.....

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

Not on this one