Description

Soon after closing my first deal, I found another fixer-upper I could buy at foreclosure auction for $20,000. The problem was, I used all of my available cash on his first deal- I didn’t have the $20,000 in cash required to by the house at auction (remember, you have to pay cash at auctions).

So… I found two friends who were willing to split the deal three ways with me providing the expertise and my partners providing the money. We went to work, spending about $9,800 in repairs over a couple of months.

One weekend while we were working on the place, a real estate agent stopped by and said he had a buyer that wanted the house and was willing to pay a full price offer of $67,000. Bingo! We accepted the offer, completed the work and walked away with a net profit of $35,000 ($67,900 – $29,800 invested – commission and closing costs.)