First Fix and Flip Success!
Just wanted to share my success story so hopefully others can be encouraged! I decided in January that I was going to form an LLC and start flipping full time. I've done a couple of live and flips prior to this but this is my first true fix and flip. I bought a home in February (which is still on the market) and one in March which just sold! So here is the story on the one that I just closed in March:
I bought the home on 3/10/15 for 99k from the MLS. It was a 4/2 built in 1960 out here in Las Vegas, NV. I'm a licensed Realtor so I also got a 3% commission. It was on the market for 115k for a couple days before I saw it. I put an offer in at 95k with a 3 week close (hard money loan). They countered at 99k and I accepted. The owner was motivated because the tenant reported them to the city for multiple things so they were getting fines and they weren't able to rent it for months until they fixed the issues. I knew it would only cost about 3-4k to get it fixed. The house was move in ready besides those issues.
So anyways to close it I went to two different hard money lenders. I ended up with finding one that wanted only 6k down while charging 4 pts. So I went with that and used my commission to pay some of the closing costs. I ended up coming out pocket about 8k to close. Once we closed I had my contractor fix the issues with the city and a few cosmetic things. it ended up costs about $3500 for everything. I got it back on the market within 4 days of closing. I listed it for 135k and got a full price offer the first day on the market! I accepted and the buyer closed it on 5/3/15.
So it only took 53 days to flip and I ended up making about $23,000 in profit after everything! I definitely have to thank BP for that! Just listening to the Podcasts and reading the forums motivated me to finally start and take action. Hopefully this can motivate someone else!