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AFTER expecting significant issues from a $32,000 property, a realtor and expert flipper has revealed that they sold it for a whopping $120,000.
The home, located in Trenton, New Jersey, on the eastern Pennsylvania border, was in dire shape.
Expert home flipper Ricky Morgan made $85,000 flipping a New Jersey propertyCredit: YouTube/ Flip LabThe home had several issues but wasn’t in terrible shapeCredit: YouTube/ Flip Lab
Real estate guru Ricky Morgan was behind the deal, and noted in a YouTube video that he and his team turned a profit of about $85,000 without “lifting a hammer” to fix the house up despite its “big problems.”
Ricky dedicated the clip to helping viewers of his channel, Flip Lab (@thefliplab), do something similar.
He said he helped solve at least four of those problems for the seller, Ed, so the situation was a win-win for them both, a crucial element of profitable house flipping.
“The name of the game is pretty simple,” he told viewers.
“Fix big problems, get a big paycheck.”
LOOMING FORECLOSURE
The first of those problems was stopping the foreclosure of the property, which was set to happen in only a few weeks from the time Ricky first contacted the seller over the phone.
He could be heard discussing the situation with the seller, who owns the entire space, and Ricky said it would be a poor result if they had to give their equity back to the city.
“The city was about to take it in about 30 days,” Ricky said.
He added that New Jersey law gives homeowners about a two-year period to solve the problem of not paying property taxes, but Ed’s time was running out, so he contacted Ricky and his team.
Ed needed a “quick cash closure” to get out of the tax situation, and Ricky and his team could offer payment for that.
I made $23,000 off a run-down home I found on the regular listings – the ‘small details’ made an $8,000 difference
REPAIRS NEEDED
The second issue with the home was the layout — Ricky explained that it wasn’t necessarily designed well, with only one bedroom, bathroom, living room, and garage.
Several rooms needed repairs, and Ed mentioned pipe leaks, among other required fixes.
“It’s a one bed, one bath — who really wants that,” Ricky said.
“The good news is, the taxes are low enough where it could be a rental property.”
Ricky continued that the home was actually not in as bad of shape as even Ed might have believed, and some sellers like him can often overestimate the severity of issues and costs.
He added that sellers like him could be the best to work with to make money on a flip quickly, as Ed doesn’t want to have to do any repairs himself or have a lot of people walking through it to see its current condition.
The point is, it’s not a bad house, it just needs work that the seller doesn’t want to go through the process of completing.
That’s also where Ricky and his team can assist and benefit.
NO PLACE TO GO
For the third problem, Ricky noted that Ed didn’t necessarily have the income to show or a place to move to after selling the home, making it difficult to find a rental in the area to stay at.
Ed explained on the phone with the real estate guru that he was in a difficult spot, needed the money, and had to stay close to his mother to take care of her while looking for a new place.
Ricky told him that he could possibly help by putting him up with a leasing agreement in an apartment complex his team recently acquired to alleviate the problem.
After some consideration, Ricky and Flip Lab had to “get creative.”
“We got creative here, actually my partner Steve, his dad — he owns a bunch of rentals, an apartment complex nearby that was able to be flexible with him to get him in as a tenant,” Ricky said.
“The way we structured the deal, we had Ed put a lot of up-front money for that rent, for security.”
Ricky added the apartment solution for Ed was a “massive part” of getting the deal, especially at a discount.
STORAGE REQUIRED
A fourth and final discrepancy that Ricky and Flip Lab addressed for Ed was his need for a storage unit.
“It was really important for him, knowing that we were going to downsize into an apartment, to find a place to put all his stuff,” Ricky said.
He made the solution simple by offering assistance to Ed in helping him move his items out, obtain a storage unit, and gave him additional time to get his belongings out after they closed on the residence.
“What ended up happening was, Ed stayed in the house for an extra two and a half weeks,” Ricky noted.
“He was living there while he was moving his stuff out of the house.”
The real estate guru said it was atypical of their normal operations, and they wouldn’t have let most sellers do it given the potential for squatters refusing to leave.
Even so, Flip Lab knew it would be detrimental to the sale if they didn’t allow Ed the time.
Ricky stressed to viewers that it was the “solution-oriented” approach and accommodating whatever Ed really needed that led him to make the $85,000 profit.
It also resulted in Ed being in a better financial position to move forward.
For more related content, check out The U.S. Sun’s coverage of a flipper who bought their first property for $5,000 and sold it for $30,000.
The U.S. Sun also has the story on a $97,000 flip going for at least a $33,000 profit.
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This article was originally published by a www.the-sun.com . Read the Original article here. .