#BEFORE pics of my latest acquisition 😃
Would you believe me if I told you that I found this deal on #FacebookMarketplace while on vacation to #LakeRedstone in #Wisconsin ?? 😎
Backstory: This was a #probate deal.
The previous owner passed away and his 2 daughters inherited the property.
They knew it needed some serious updates, but didn’t want to take on the work themselves.
The daughters decided to list it as FSBO after getting it appraised for $120,000. They listed it for $115,000.
A #wholesaler ended up getting the property under contract for $77,000 😳
I have no idea how he convinced them to come down THAT much... The wholesaler then started advertising the property on Facebook Marketplace for $85,000.
After some back and forth negotiations, I got the property under contract for $80,500.
At this point I hadn’t even been inside the house! I was in Wisconsin for a week just throwing out offers on houses that I thought were good deals.
This ends up being a #win win for everyone involved! 🙏🏼 The sellers walked away from the property with $77,000 cash in hand, no agent commissions, and a guaranteed close.
The wholesaler walked away from the property with $3500 in #profits just to be a middleman on the transaction.
And I walked away with a property that I bought 100% with other people’s money!! Of course, my #investors win too because they make #passiveincome off the interest payments of the money I borrowed to fund the deal.
The best part for me... I’m going to invest $25,000 into the #rehab and this house will be worth $150,000-$160,000+ 🤑
Aiming to finish the rehab by the end of October & then I’ll post it up for rent at $1300-$1400/m.
I’ll then go to the bank and #refinance the loan, pulling out 75% of the #equity .
The bank will give me #cash for 75% of the value ($112,500 if it appraises for $150k). That will pay off the $80,500 purchase price, the $25,000 that I spent on the rehab, the interest to my investors, all other expenses, AND it should leave a couple thousand leftover for me to enjoy TAX FREE 😴
#RealEstate is fun once you learn how to play the game! - 9 minutes ago