Hello BP, Thanks for your support! I couldn't have done this or been motivated enough to do this without you! I have posted a few threads with questions throughout this process and finally have completed my first flip! I am on track with my goals and now have experience. And you can flip a house with no or low money down.
Purchase price: $300k
sold for : $420k
Profit after holding/closing costs: $35k (a little tighter than I'd like, but hey for my first one this ain't bad)
I got the property under contract, found an investor to take out a mortgage and pay for rehab, then I supervised the rehab and sold the property for a 50/50 split. I managed the process from start to finish and they provided the money.
My profit: $17.5k with very little out of pocket
on to the next...
This is awesome, @Max Biggar . Congratulations on being proactive to start securing a strong financial foothold for you and your family! Well done! :)
How did you find the property in the first place? What kind of marketing did you do?
Also curious to know how you found the investor who was willing to trust you enough with no experience to front ALL the cost....? I also have no experience and keep hearing of people who found someone willing to take a chance on them. Interested to hear how you did it.
Did you do mailing or driving for dollars to find the house?
That's a great first flip @Max Biggar ! The Atlantic beach area is one of my favorite parts of town. What attracted you to that property and area as opposed to starting with lower priced properties (with ARVs in the $250K range) in other parts of Jacksonville? Congrats again!
Since I live in Atlantic Beach and know the area well I started analyzing the properties in my neighborhood. They are definitely on the higher priced side for flipping to start out but its the area I know. This property I remembered had an estate sale, so a few weeks later I thought "hey maybe they want to sell the house too". I typed up a letter saying I lived in the neighborhood and was interested in purchasing but when I went to slide it under the door they had already put up a fsbo sign that same day. I thought I was too late, but I called and did some relating with the seller and ended up getting it under contract anyway.
I then asked my sister to be the investor and get the loan since she's also been wanting to get into real estate investing. She lives out of town so she provided the money and I managed the project. We drew up a simple contract ( a must, even for family) which we had to refer back to a few times during some stressful parts.
Great job @Max Biggar ! Love Atlantic Beach. Great place to live as well as invest. I just put in an offer on a flip opportunity in the AB area, competition is tough tho! Highest and best called within 2 days of listing. Gotta be ready to go, but smart enough not to overpay. Let me know if you need anything, I am local. Thanks!
@Rich Stancato agreed, market is tough right now. I am finishing up a 2nd flip as well that I actually got the same time as this one. I got both under contract the 1st day they went on the market. It's definitely an advantage when you know the area and exactly how much to pay so you can lock something up as soon as it hits the market.
Hey @Max Biggar ,
congratulations on your first flip and already working on the second!
Quick question: Did your sister agree to back you financially before you made the offer or did you get the property under contract first and then look for a financial partner?
@Joseph Hamaoui I got the property under contract first. It was a fsbo. Then I figured out how to finance it.
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