Ryan Burk Rehab Deal

Rehab Details

Property City: Petaluma
Purchase Price: $381,000
Repair Costs $44,000
Holding Costs: $17,133
Sale Price: $478,000

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Case Study

How did you find and structure the financing of this deal?

We found this deal by making it a goal to create 10 new relationships with R.E. Agents per week, and making a minimum of 10 offers per week. The biggest key to this process is to be very persistent and continue to follow up on your offers even if they didn't get accepted the first time around. We used private money to finance this deal, and 24k of our own funds. We had two lenders. The lender in first position was paid out 12 percent interest and 2 points. The second lender was paid out 10 percent interest and 2 points as well.

Provide a summary of the repairs and improvements you made to the property.

New kitchen including appliances, granite, and a wet bar. Refinished original wood floors, combined the master closet with the second bedroom closet to make a huge walk in, and split the 3rd bedroom closet between the 2nd and 3rd room. New deck in the back, new windows, two new sliding glass doors, SOD in the front of the house with black mulch and flowers, split stone granite strips over the existing brick fireplace, new guest bathroom, and new master bathroom.

How did you find a buyer for the property if you sold it?

We found the buyer through a FSBO situation, and networking.

What are some of the major lessons learned that you would like to share with other students that they can learn from?

Our original offer didn't get accepted on this house. We continued to follow up with the agent to see if the offer that got accepted was going to fund. 3 weeks later the deal fell out of escrow and we were the first person the agent thought of because we were so persistent with our follow up. The biggest lesson is to FOLLOW UP, FOLLOW UP, FOLLOW UP, until the person who's offer got accepted buys, or the deal dies. If it dies, you will be right there to pick up the pieces.

Before & After Photos