Skelton

Key2 Homes, LLC in Meridian, Idaho
Deslyn O’Dell with Robert O’Dell, Bob McLean

We found this short sale property through one of our Top Producer Realtor contacts. Great property built in 2008 with a 1,360 square foot unfinished daylight basement. We finally got approval from the lender and closed with a 90-day deed restriction. Made a fantastic family room, media room, guest suite with a walk-in closet, and a nice, big storage room in the basement. We also updated the main floor. After marketing and listing the property, we had quite a bit of interest and good feedback. Since we did not get any initial offers, we continued to aggressively reduce the list price through the holiday season until we found a buyer, who fell in love with the house and the views.

Rehab Details

Property City:	Boise
Property State:	Idaho
Purchase Price:	$185,000
Repair Costs	$29,915
Holding Costs:	$27,775
Sale Price:	$255,000
Gross Profit: $12,310*

 * These examples depicting income or earnings are NOT to be interpreted as common, typical, expected, or normal for an average student. Although we have numerous documented successful deals from our coaching students, we cannot track all of our students’ results, and therefore cannot provide a typical result. You should assume that the average person makes little to no money or could lose money as there is work and risk associated with investing in real estate. The students depicted have participated in advanced FortuneBuilders’ training and coaching. The participants shown are not paid for their stories; however, some of the students depicted may also be a FortuneBuilders’ coach, and our coaches are compensated for their services. We believe in full transparency, so please read our Earnings and Income Disclaimers and Terms of Use.

Case Study

How did you find and structure the financing of this deal?

One of our awesome Inner Circle Coaches introduced me to 2 spectacular Mastery members during the REO Short Sale Bootcamp in San Diego. These Mastery members did their due diligence in checking out our deal and our company and decided to become our private lender for this rehab. They loaned us about 75% of the purchase money on a first deed and we contributed the remaining purchase and rehab money from our internal capital.

Provide a summary of the repairs and improvements you made to the property.

The total size of this home was 3,283 square feet – 1,923 on the main level and 1,360 in the unfinished daylight basement. We finished the basement by adding a family room, media room with dimmer wall sconces, a guest bedroom with a walk-in closet, a full bathroom, and a large storage area. On the main level, we updated all the flooring and installed hickory, engineered hardwood in the main hallway, dining room, eating area, and great room – about 1,000 sq ft! We replaced the kitchen counters with granite, added a new stainless sink and faucet, replaced the tile backsplash with glass tile, and added pendants over the bar. We replaced the wire shelving in all the closets. In the master bathroom, we upgraded the counters to granite and added a second sink. We also upgraded the master shower with an etched glass frameless door.

How did you find a buyer for the property if you sold it?

We marketed through the MLS, flyers, and an Open House. During the Christmas holidays, we took the property off the market but left the sign and lockbox there with the plan to re-list in early January. Before we re-listed it, an agent stopped by to see it and called with an offer to buy it for her personal residence. We were able to negotiate a price that did not include agent commission since it was “technically” not listed at the time.

What are some of the major lessons learned that you would like to share with other students that they can learn from?

This property was much bigger in size than our normal rehab projects. We also discovered that the small subdivision in which this property was located did not exactly follow the comparable properties in the area even in close proximity. Other agents also reported surprise about this strange pricing phenomenon. We learned that planning for 6 months of financing and holding costs in the beginning helps protect profit, especially with a deed restriction.

Shout Outs & Testimonials

FB coaches are great connectors and understand how to help in every stage of your business. Mastery members make outstanding resources, because FB teaches us to speak the same language and be professional. Bootcamps provide excellent opportunities to meet and collaborate with other like-minded real estate investors and entrepreneurs.

 Before & After Photos