by Gagner | Mar 27, 2013 | Before Photos, Sellers, Uncategorized
Here is a story about how one person made a great profit in Cambrian real estate with some extra cash and a small amount of effort. A previous blog of mine spoke to the hot condo market that exists in Cambrian today, and this posting takes it a step further by illustrating how big money can be made. As in all investing, the idea is to buy an asset (in this case a condo) at a low price, add value and then sell at a higher price. Sounds simple, and it is if you follow a proven strategy and avoid any big mistakes. So here goes…. In February 2012, my friend put a $274,000 offer on a condo that the bank was short selling. It required a $10,000 deposit and the bank did not give final approval until the end of October (yes, it required more than 8 months for an answer). Once the bank gave final approval, they gave my friend 10 days to close the transaction. Luckily, he had the cash in a bank account which allowed him to get the transaction done. As a side note, IF he had not had the money, there are hard money lenders who provide experienced real estate investors cash in less than 2 weeks (for a cost). Since February, the market had gone up in value, so instead of keeping the condo as a rental (his original plan), my friend decided to rehab the interior of the unit and resell to a retail buyer. This practice is commonly called “flipping”. Using a contractor I referred him to, he remodeled the...
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