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How I Profited Despite Issues by Thinking Outside the Box

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We came across this lead in 2013 from a tired landlord who wanted it. He told us to come out and see it. He looked at the house and took a picture. He was happy to pay back. That was $ 70,000 in his estimate. The house was in a small pocket outside the desired neighborhood. I offered him $ 40,000 to $ 45,000. Obviously, he couldn’t do anything with it because of the fact that he owe more to his property. He kept calling us and tried other investors. And no one was able to make his number work. Earlier that year, I knew how the market was changing and prices were rising. I called the person I worked with in the deal. And I told them to call the seller.

The seller was still interested in selling. But I started to think the house was more valuable than I initially thought. I think fate was on my side. I found one equivalent sale in the neighborhood of $ 180,000 on 2/2 at 936 square feet. We have decided that we can do the job.

We called the first lender Lend to a transaction.. He didn’t like the fact that there was only one good sale in the neighborhood and the rest were okay. He said he would pass by because of the pocket where the house was. We called the second lender, and he said he wouldn’t lend it because he didn’t like the metal roof. In other words, he said, “I’m reluctant to make this deal in a single sale, so I choose something that can’t be changed and say I don’t like it.” I called the third lender and after averaging all the comparisons in the neighborhood, he said he didn’t like the average selling price and passed. He got stuck like Chuck. We were struggling to close the deal.

Related: How to buy, rehabilitate, rent and refinance 14 properties at once

Make transactions work

I had to call the wholesaler I worked with and make another offer. I had to ask her to ask her seller about taking over her home.subject, “And we will give him $ 3000 at the closing. I also had to pay $ 3k to another wholesaler. Fortunately, the seller accepted. At that point, we needed to find an investor to fund the rehab — and we secured it within a few days. I finished it. The house was 3/1 of 1,000 square feet. After paying everyone at the closing, we were about $ 77,000. The budget was $ 60,000 for rehabilitation. And I wanted to sell it for $ 180,000. The owner recently changed the roof of the house to a metal roof. I personally don’t like it, but it’s long-lasting and maintenance-free. We ended up keeping it and it came out beautifully.

Corridor IMG_5071 kitchen Living room Outer front 1

The house is in a trendy little pocket in the neighborhood. It had to go from 3/1 to 2/2. I decided to use the bedroom to add a master suite. I also wanted to build a deck outdoors and basically update the rest of the house. The rehab took four months, but it should have been done sooner. I had to hire an exterior decorator to find a color that would match Burgundy’s metal roof. After all, I was able to get a full $ 199k offer the first week on the market. We staged the house because we needed to give sellers a vision of what they could do in 2/2, not the peak sales season right now.

Related: A simple step-by-step guide to rehabilitating your first rental

Conclusion

In conclusion, remember that we are real estate investors, and we are here to solve the problem. The problem can be not only the seller’s problem, but also a problem within our business, such as securing funds. In this case, the seller was tired of checking this rental property and driving for 3 hours to deal with the problematic tenant. Also, keep in mind that not everyone can see your vision. For hard money lenders, they simply make the best decisions for their business model. They made their money, and they can choose to do it as they like. I am still a lender and friend who rejected me today and will use them in the future. Remember to always follow up even if you are rejected, as you don’t know which route will lead to the deal.

What was the last deal you had to try different ways to make it work?

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