The Property:
Mike purchased a condemned property in Midvale, UT, that sits on .63 acres.  This property is zoned RM-25 which allows 25 residential units to the acre.

The Find:
We found this property using his pre-foreclosure technique which allows us to find properties with at least a 30% equity position.  The owner was anxious to move out because of life issues and was willing to allow us to wrap her existing financing.

The Technique:
We found the property researching trustee sale advertisements in the news paper.  We then took the property to verify with county records how many encumbrances it had attached to the property.  Once we verified a great equity position, we contacted  and established a relationship with the owner.   We immediately got an “authorization to release information” form the owner and got the payoff and reinstatement from the bank.  We knew that we could develop this ground and put at least 14 units on it.

The Contract:
We wrote a regular real estate purchase contract for this property with a seller finance addendum to include an all inclusive trust deed to “wrap” the existing financing.  We offered the seller some cash to move into another home.   Total purchase price on this property was $129,000.

The Result:
We did some engineering and initial architectural work on the property.  We then listed the property for $200,000 and received multiple offers on it within the first day on market.  We asked for the highest and best offer and sold it for a cash close in 2 weeks for full price.  We realized a $64,000 return with about 15 hours of work.