Michael Aldridge Rehab Deal

 

Michael Aldridge Rehab Deal

Pinnacle Properties in Phoenix, AZ

We found this deal via our constant, keyword MLS search. The house had been on the market 3 months as a short sale and listed at $174,900. The house was a disaster. We viewed the property, discovered the problems, sized up the listing agent and gave him a call. Asking him questions regarding the bank holding the short sale, whether there was just a 1st mortgage or a 1st & 2nd. The listing agent outlined the reasons why the house hadn’t sold yet. The most important fact he gave me was that it just fell out of contract at a price of $165,000. Once we completed our conversation, I quickly wrote a cash offer of $165,000 and we had the home under contract. We proceeded with our inspection and submitted our BINSR and contractor bids for the repairs and was able to get a $4000 reduction in price. Our 1st offer was made in January 26th, 2018, we ended up having to write 2 more offers, essentially tying it up from January to August 31, 2018, when we closed for a net price of $161,000. We had to hang in there with the listing agent and keep him involved. We funded this deal with our commercial line of credit. We did a complete remodel: framed in a 4th bedroom, flooring, removed popcorn ceilings, re-configuring the kitchen, windows, doors, bathrooms, framed in the carport to make a 2-car garage. Some of you may remember walking through this house on the Scottsdale Boot Camp rehab tour in September 2018. I pre-marketed the home on our website and the social media channels. An agent that I had done business with prior follows our company on social media and checks out our projects on the website. BOOM! I had a FULL PRICE CASH contract on the house before it was complete. On 12/6/18 I listed the house MLS to accommodate the buyers’ Realtor and the buyer closed on 12/18/18.

Rehab Details

Property City: Phoenix
Property State: AZ
Purchase Price: $161,000
Repair Costs $46,320
Sale Price: $250,000

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Case Study

How did the FortuneBuilders team and resources help you to accomplish this deal?

I learned from the FB team that adding tenacity and Real Estate knowledge is more powerful than cash. Presenting our case to a selling agent and his/her sellers with undisputable documentation makes the process of lowering the price much easier. Sometimes these deals take time to close. I learned a lesson from a previous Short Sale I didn’t get due to my impatience. This time I had the patience for the job.




Before & After Photos