1st Successful Flip in Cedar Rapids set to close Oct 31st!

12 Replies

Ok...so purchased a 3br 1.5 bath home on July 17th in Marion, Iowa. I bought this home fully intending to flip the home and try to make a few bucks while doing it. Set to close Oct 31st, here are the details (I am sure I will leave out a lot of details but this is the basics):

Purchase Price: 53.5k

Rehab Cost: 13.5k (paint, carpet, redone hardwoods, new cabinets, tiled bath and shower, new light fixtures, garage door, new deck, new windows etc etc...this number includes re taxes as well ) I saved some money by doing a lot of the work myself..some painting, demo work, landscaping, etc.

Interest Cost: About $600 ( I got a construction loan from a bank..the interest rate is 4.75%...so very low)

Utilities: $300

So I am basically all in for 67.9k (53.5 +14.4k),

Sell Price was 109k and we went sale pending in 1 day!!

After commissions, prorated re taxes, and a lot more seller concessions than I would care to discuss....the net proceeds will be roughly 92,500.

This will leave me at closing with 24,600. But I do have to pay my contractor (partner on the deal) for his labor of 7,500.

This will leave me with 17,100. And the best part of this is that I put no money down!! My bank provided all the money to buy the property and finance the repair costs. Pretty cool!!

I am set to close on my next project Nov 3rd. Its a bank owned property that I bought for 38k (all cash, family member loaned me the money). Rehab costs will be about 12-13k with an ARV of roughly 83k to 90k.

Thanks for reading.

Congratulations! Fantastic numbers!

That's awesome, @Tyler Smiarowski !!! Congratulations! Sale pending in 1 day is encouraging, right!

Great job, @Tyler Smiarowski  !  Success stories are always great, but seem more real when they are local success stories.  Your sale price seems to be around the 1% rule for the Marion area rents.  Not sure if you are listing these properties for owner occupants or selling to investors, but give me a shout if you are ever looking for a buyer.  Congrats again!

Hi Tyler, 

Congratulations on your first flip and new acquisition. Your story is very encouraging  - we are looking for our first flip. Question for you...did you use a national lender or a smaller community lender to get such great financing? How many lenders did you have to approach? 

Thanks and best of luck!

Alyssa

I use a local bank in the area. I don't think a large national bank would provide generous loans like these (I may be wrong but never have heard anyone doing it). I never really approached the bank for these types of loans. I financed one of my rentals with them and just developed a relationship with the person. He is VP of commercial lending for the bank (banks have millions of VP's it seems like so he isn't really a big wig but more than a entry level loan officer). I just told him what I was looking for in lending and he offered to help. If I were looking for another local lender...I would find some of the higher up loan officers and give them a call or shoot them and email and tell them what your plans are and see if they can help.

@Tyler Smiarowski  Great story, very inspirational. I'm currently looking into the financing aspect of my first flip. 

How did you come across the deal, wholesale, REO, etc...? Did you have to provide a business plan to the VP to get the loan? What type of loan was it?

House came from a bandit sign...I put out about 7 or 8 bandit signs and got a handful of calls. I didn't provide a business plan..just my tax return and personal financial statement.

Tyler congrats! That is amazing.

Thanks for posting and keep up the great work.

Best,

LG

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