Real Estate Investing Mastery Podcast

Derek Dombeck loves creative deals, so when a friend offered him a defaulted note that he wanted to unload, he jumped at the chance to be in first position. For only $4500, he was poised to take possession of a 4-bedroom, 2-bathroom house on an acre of land in Wisconsin.But this wouldn’t be the Deals Gone Bad series if something terrible wasn’t about to happen. The first hint of trouble was that the owner didn’t want to meet Derek at the house. He chalked this up to a slight hoarder problem, and he ordered the dumpsters to get ready to clean out the house. Then he found out about the back taxes. And then he got into the basement.This house had $125,000 in ARV, and the back taxes equaled about $18,000. It was a solid deal. But it wasn’t hooked up to city water or sewer. In fact, the ten inches of water in the basement indicated that it wasn’t hooked up to anything really. And the contractor Derek had hired to clean out the house refused to touch the floating furnace and open pit of sewer.The work Derek had to