It smells like money. That’s what I thought when I first stepped inside 22297 N. Celtic in Maricopa, Arizona. Okay, it didn’t really smell like money. It smelled like mold. And cat poop. The mold smell came from the flooded basement. The cat poop was on the carpet in the guest bedroom.
How did I find out about this deal? Our buyer told me about it. He was interested in one of our other properties for sale around the corner. He couldn’t buy that house because it was already under contract. He started looking on his own and emailed me the info for 22297 N. Celtic when it came on the multiple listing service.
It was a bank-owned house. At first glance it seemed like a great deal, even with all of the repairs. I went through the house with our contractor and the numbers worked. We closed on this house last Friday.
Here’s the best part – the investor we partnered with on this deal wants cash flow without the hassle of property management. So, we are financing the purchase of the property for the buyer. The investor and our management team will make money from the cash flow generated AND the spread (the difference between our purchase price and the selling price.) The buyer gets a newly remodeled home without dealing with a traditional bank. It’s a win-win-win.
Check out this video to see what the angry homeowner did to the house before we bought it from the bank: