How did your first rehab deals go?

Question

Hey guys. I've been reading up a ton on REI lately and seemed to have grown a huge interest on rehabbing/flipping. Question for you... How did your first deals go? What obstacles did you run into? How did you go about getting a loan?

Ronnie Sparrow · Answer

Hey Alex,  great question!  We have five rental properties now so we primarily buy and hold but we just completed our first flip.  It's is under contract now and scheduled to close November 19th.  We should profit about $33,000.  This is net profit after closing and realtor commissions are paid.  I thought we did pretty good for our first flip.  How did the first deal go?  Well the rehab was $58,000 the purchase price was $80,500 and we have it under contract for $190,000.  We actually hired a mentor just for this flip for $2,500.  He was there every step of the way.  We hired him because it was our first flip and we did not want to screw it up.  The only hiccup we had was a guy who gave us a bid for stump removals did the job without my approval.   I just asked for a bid from him and two days later he called and said he was done with the job.  As of this date he has not been paid.  We purchased this property with private money and we did the rehab with money borrowed from my 401k.

Ned Carey · Answer

Fantastic - It cured me from ever thinking about rehabbing ever again!

It was one of my most profitable deals   .   .   .   .   in terms of lessons learned

LOL  - Ned