TWO NEW REAL ESTATE INVESTING CASE STUDIES FROM JOSH CANTWELL:
Today I’m going to walk you through two brand new personal case studies we have of homes we sold in record time last week and yielded a profit of $86,000. I knew this spring selling season was going to be hot, but so far I’m blown away by the results we’re having.
Before: 2227 7th St. Cuyahoga Falls, OH
Let’s take a trip back and visit this property before we had started the repairs. The day I filmed this video was the first time I was ever seeing the house since my brother Mark actually made the purchase. We bought it in October 2014 and started with $92,000 in private money, bought the property for only $62,000, so we had $30,000 cash back at closing.
We wanted to try and keep the old floors, doors and doorways. It needed some exterior work and new windows, drywall and electric inside. The total rehab process took about 4 months because of the subzero temperatures this past winter.
After: 2227 7th St., Cuyahoga Falls, OH
We knew this house was in a pretty hot market, but we didn’t realize how hot until we started doing the work and agents were stopping by on a regular basis to see when we would be listing the property. We had about 8-10 showings and a few second ones scheduled as well. Once the repairs were complete, we listed the property for $139,900 on April 12 and since we had quite a few competitive offers, we ended up getting $140,400 on April 18. The total net profit after ALL costs including realtor commissions, property taxes, private lender interest and other title fees on this property will be $34,100.
Before: 1300 Idlewood Ave., Lakewood, OH
Idlewood was a unique property for us because it was the first multifamily home we have rehabbed and flipped in the past 3 years. It’s located in Lakewood, OH which is another pretty hot market in the Cleveland area suburbs. It’s perfect commuting distance into downtown is just 10 minutes and sits right beside Lake Erie and beautiful Edgewater Park. We purchased it in late January 2015 for only $53,000.
It needed 95% interior work, both the top and bottom units were identical and needed some serious updates. Check out the video below with my Acquisitions Manager, Dione Saliba, for a walkthrough of the property before repairs.
Lakewood is full of very old homes that have a lot of character, so we wanted to make sure we kept the charm of the old hardwood floors and fireplaces, but updated things that desperately needed it like the kitchens and bathrooms.
After: 1300 Idlewood Ave., Lakewood, OH
This property had a response very much like 2227 7th St., we had a lot of interest before it was even on the market. To really get the buzz going, we created this unique marketing video to show the updates we made to the house and give a drone view of the yard and surrounding city.
We listed the property for $129,999 on April 30 and within 4 days, we received a cash offer of $125,000! I didn’t even bother negotiating with the buyer to get a higher offer. We Just signed the offer and proceeded to escrow.
I’m sure right now you’re wondering – “Josh, how are you finding these ridiculously profitable deals?” The first thing to note is that we don’t get every property we do our due diligence on. Some fall through and we never close, some we visit and it just isn’t what we were looking for. In order to keep the process going, you have to look at your business like a funnel. You need to look at a lot of potential prospects in order for the good ones to shake out at the bottom and turn into deals. You have to do your due diligence by going out and looking at these properties, following-up and staying on top of the ones that make the most sense to invest in.
My team and I find these properties many different ways, but one that we use often is HomePath.com. HomePath is a site where you can search thousands of foreclosed Fannie Mae homes instantly. You just log on, create an account and search by city, county or price. These homes are also listed on the MLS (Multiple Listing Service) with a realtor.
The best part of HomePath is that you are able to make a bid online and do not have to be a licensed agent to purchase. An agent does have to put your offer into the website for you.
If you secure a potential deal and put in the right amount of rehab work to make it a great property that people want to buy, it will pay off. As you can clearly see from 2227 7th St. and 1300 Idlewood Ave., a good property pretty much sells itself with almost no marketing.
Real estate investing can seem intimidating, but trust me, once you walk away with the first couple profit checks, you will be hooked. There’s a lot that goes into the business, but I am here to walk you through every step of the way! We even provide you funding for your deals. To get more information about our “asset based” Freedom Funding Program visit this page of our website and watch the free training videos.
Leave me any questions or comments below regarding these properties, HomePath.com or real estate investing in general, I’d love to hear from you!
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CEO – Strategic Real Estate Coach
CEO – Yellow Jacket Properties
CEO – Strategic Freedom Funding & Freeland Ventures