Investment Info:
Single-family residence fix & flip investment.
Purchase price: $43,000
Cash invested: $159,000
Sale price: $245,000
This was a 1850 sq foot house in downtown Detroit; needed everything, including dropping some big trees in the back. The garage was falling in on itself, and we had to take the house down to the studs and run an HVAC system, new electrical, plumbing (even a new sewer line)
What made you interested in investing in this type of deal?
I always wanted to bring some of the old beauty back to the city of Detroit, the architecture from the 1920's is incredible
How did you find this deal and how did you negotiate it?
I met the seller at a seminar, and she had met 4 other realtors that day and said she had a house to sell. I called her the next day, and she said I was the only agent that actually called her so I was able to list the house for her. Once I had it listed actively, we were not getting what she had wanted, so I offered her the maximum that I could afford for the house, and we had a deal!
How did you finance this deal?
Cash
How did you add value to the deal?
The seller did not have to leave it on the market, and she got more than anyone else had offered
What was the outcome?
The house turned out beautifully, great buyers purchased it and seem to really be taking good care of it.
Lessons learned? Challenges?
We put drywall up on one of the walls in the basement...should have just left the brick exposed because we had a leak before we poured some concrete, and it ended up having mold so it cost $$ to have it remediated.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Transnation title agency did an awesome job with the titlework. There were 2 full pages of conditions to get fulfilled before we could close, including a tax lien on the property for; someone that never lived there, who likely was using someone else's SS#, and had also passed away. I can't give them enough credit!
