Single-family residence fix & flip investment.
Purchase price: $209,000
Cash invested: $60,000
Sale price: $325,000
What made you interested in investing in this type of deal?
There were some recent flips in the area that I already new were similar to this property.
How did you find this deal and how did you negotiate it?
I found this deal through a wholesaler who brought it to me asking for $225,000. I found that when I estimated my rehab numbers and holding costs that to make the deal work for me I needed it for $15k less. I was able to negotiate the deal down to a purchase price of $209,000
How did you finance this deal?
Hard money for 80% of the purchase price + all rehab costs and private money investor for the remaining 20% down plus holding costs.
How did you add value to the deal?
- Both bathrooms brand new top to bottom
- New flooring and painting throughout the whole house
- Updated kitchen with custom island and all new appliances, granite countertops
- New lighting fixtures
- Opened up the floor plan, etc...
What was the outcome?
We went over our rehab budget by about $5k. Total net on the project was about $35,000... Success!
Lessons learned? Challenges?
Lesson: Account for at least 10% contingency in your rehab budget for unknowns. When we went to put new flooring in we saw that we needed to redo all the sub-flooring as well which added a few thousand.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
- Branco Theis was the realtor that sold the property after completion. Highly recommend him in the Raleigh/Durham area.
- HouseMax Funding was the hard money lender I used and I actually found them through this website. Very easy to work with especially for beginners.
Nice job using other people's money!
Congrats @Nathan Wierzgac !
@Nathan Wierzgac Congratz on the Deal that was Awesome. How did get the Wholesaler?
@Owen Mitchell I met my wholesaler through another real estate networking platform. Highly encourage you to find out when your next local REI meet up is and network!
@Nathan Wierzgac Thx! Will do.
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