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$20,000 Profit on a Major Fixer

by Terry Campbell   

Well here it is gang....

In a previous Success Story, $16,400 Practically Fell into My Lap, I mentioned a rehab that I picked up for $4,500. Well I purchased it in the name of a land trust. I had recently purchased Your Step-by-Step Guide to Land Trusts by attorney William Bronchick. This has been and will continue to be an excellent privacy and real estate investment tool for me.

I just sold my rehab and netted $20,000 profit!

This was a major rehab (rewire, new windows, foundation leveling, new roof, paint, and central heat and air conditioning). This house was built in 1920 and in really bad shape. Bottom line: I took the worst house in the neighborhood and turned it into the most admired. I love it when that happens!

It was not hard getting the licensed contractors. Even though I had a little trouble with one of them, they are all ready to do the next ones with me. I had to invest the $16,400 from the option I had done back at the first of the year with a little more, but it was a very good return on my money.

Before I was halfway into it, I put a "for sale by owner" sign in front yard. The calls started immediately . They would ask the price (I had it at $45,000), and this neighbor said that it was too high. Well I took that to heart and priced it at $55,000. It sold at that price!

I talked to the appraiser and he said it was one of the best rehabs he has come across and had no problem appraising it at that price. When I told the neighbor that said the price was too high what it sold for, he was speechless and thanked me for bringing up property values in the area.

It's off to the next three now! Guess how I came across the next three rehabs... You guessed it. That same neighbor has a grandmother that has eight UGLY HOUSES she needs to sell.

Man, I love this business. It can be done and will work for anyone that has the desire to educate themselves and get out there and do something with that knowledge. Thanks to everyone who answered my newbie questions, and above all, Thanks to my loving wife for believing.

 
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