Updated about 7 years ago on . Most recent reply
Unusual Flip in Frisco!
I just completed a flip in Frisco, TX that was done for a family member so no title changed hands. Besides the fact that it was a perfect setup, 28 years old with no cosmetic updates whatsoever & damage plus full windows & major foundation job. One of the other more unusual things was the financing. The family member owned it outright & our realtor valued it as is at $235k. We attempted to complete the work in 3 weeks for $25k but it ended up being 6 weeks & $32,500 still impressive as the original budget & timeframe were very aggressive. The property also needed ceiling fans, new door handles, complete kitchen & 2 bathrooms overhauled, paint, drywall & some doors repaired, popcorn ceiling, new appliances & redesigned lighting setup as well as some fence & landscaping work. It’s other bones such as roof & A/C were not new but I’m fairly good shape. So where the financing was unique was that we avoided hard money & used credit cards. Since the family member owned it outright & had a little over $10k to start the remodel we used $15k from a 0% credit card advance to pay the contractors & a friend helping plus myself. When the budget ran over we used a Lowe’s credit card to get 10% off & 0% for 6 months on last $7500. In all we paid $13 in finance charges on one smaller low interest credit card due to personal cash flow that month. Compare that to a hard money lender at 12% plus $9k in fees.
In all we had $267,500 into property & it sold for $312,500 a few weeks after wrapping up the work. So $40k+ cleared with $13 in interest or finance charges. If I ever do another flip it will be for my primary residence in Colorado Springs & completed prior to move in!