Investment Info:
Single-family residence fix & flip investment in Leland.
Purchase price: $169,500
Sale price: $245,000
SOLD!! Less than 2 months after I bought it!
Purchase: $169,500 + ~$4,000 paid to pay off a seller's debt
Rehab: $0
Sold: $245,000 minus $5,000 seller concessions
Whew, this one was crazy on the front side, but awesome on the selling side!
What made you interested in investing in this type of deal?
I called the owner of the house, who was living in Charlotte after separating from the wife, who was still occupying the house. Allegedly, the wife sadly got back into drugs and prostitution, and lost her job as a nurse. She then moved the pimp into the house with her, who pulled a gun on a repo man that tried to repossess a vehicle at the house. 😳 The husband tried to send realtors out to talk to her about selling the house, but she ignored them all. I was able to get through to her via text.
How did you find this deal and how did you negotiate it?
This was a word-of-mouth deal brought to me from a previous seller that I bought a home from last year, who has since become a friend. She reached out about a friend of hers that was facing foreclosure and asked if I could help. The wife agreed to let me come see the property after I explained how close to foreclosure they were, and how I could help. After I walked the property, I made her an offer that she accepted, so they both signed the contract.
How did you finance this deal?
I financed this deal through a private lender that loaned me 100% of the purchase and rehab budget.
How did you add value to the deal?
I planned to put around $25,000 into the house and resell it for $305,000, but a friend connected me with a friend of his that was interested in buying it as-is. So we were able to negotiate a price without realtors that made me comfortable selling it as-is, but also left some meat on the bone for them to be able to build some sweat equity. They even agreed to pay to fix the handful of items that were required for it to qualify for financing, so I had to do nothing to it once under contract.
What was the outcome?
I’m happy to report that the first time homebuyers are a wonderful, young, God-loving couple with their first child on the way! This is going to be such a great little house on a cul-de-sac in a great area of Leland to start your little family. Congrats!!
Lessons learned? Challenges?
Between the wife’s flakiness, and the husband being a trucker that was not local and was not tech savvy in the least, it took A LOT of leg work to get this deal across the finish line. Not to mention the fact that they both wanted nothing to do with each other and were nervous/skeptical about the whole situation. But it was worth it!
