Mary Derman

Homes by MB LLC in Oak Forest, IL

Mary Derman with Brynn McNicholas

We found this deal through our wholesale connection. The wholesaler locked up the property via auction. The home was still occupied, so we waited to close until the occupants vacated. We were so excited to get in this project because it was in one of our favorite towns to develop and the rehab would be less extensive than our usual model. After getting into the property, there was A LOT of garbage to clean up...and poop. Literally, there was poop everywhere - carpet, floors, walls...everywhere. Once we cleaned the house up, did some minor upgrades - we were able to leave the kitchen and baths - we were ready to go on the market after a 30-day 'rehab'. We looked at the data and realized we were able to list for 15k more than we originally thought. Then after 3 days on the market, we got multiple offers! We could not be more excited! We had a conventional buyer and our projected profit was a little over 40k - a big jump from the 20k we originally thought! Then a week before closing we learn our buyers need to switch to FHA financing. No biggie - expect we have to adhere to the 90 Flip Rule. We decide to stick with our buyers, post-date a new contract, and wait for day 91. After new appraisal issues come up with FHA, an additional month delay from the new closing date, and a lot of holding costs later, we finally close the home! The home was under contract for 4 months before we closed. Biggest lessons learned here was patience is the key! We were still more than profitable from our original projection, but not as great as the 40k. Overall, major win and happy to have this one off the books!