We’ve recently come under contract on a house in Round Rock, Texas that had really been a source of problems to the family who needed to sell it. If you know anyone in a similar situation, don’t hesitate to let us, or another investor, know.
How does this work?
A family came into possession of an older member’s house when he became to ill to stay in it any longer. When they arrived at the house, they realized he had not been keeping it up very well at all, and was actually holding on to everything that came in (I’ll spare you the details, but some are found here).
After ten trips to the dump and what felt like no progress, they reached out to a local investor, who gave them an offer that, while below “retail” for the house, was reasonable, considering the amount of work that had to go into it. They preferred to let someone else deal with all that, since they had a sick relative to deal with, too.
That investor didn’t really have time to work on the house, so he offered to assign his contract to other investors (this is called wholesaling). We bid on the house, but another investor came in before us, so we walked away, disappointed, because the house seemed in pretty good shape, other than the mess.
Time Marches On
About a week later, Carol got a call from the investor who’d been trying to sell the house. Unfortunately, the original owner had passed away. This was sad for the family, but also put a hitch in the sale plan, since the investor who had beat us out of the deal had needed to close on the house quickly. Now, though, probate and other legalities have to be dealt with before the house can close.
We are happy to take on the house, even with the delayed closing, since that gives us more time to arrange money for the purchase and rehab. We have a couple of other projects going on now, so it will be great to know we have something to jump into when those are over.
Everybody wins here. The family gets the house sold without having to do a lot of work themselves, the original wholesaler gets a small profit, and we get a house we can renovate and make available to a new family, who won’t have to do a lot of work when they move in.
If you know of anyone in a similar situation, please give us a call at 512-807-8777! We can help.