First Deal Finally Done!
Investment Info:
Single-family residence fix & flip investment in Jacksonville.
Purchase price: $56,000
Cash invested: $63,000
Sale price: $163,000
Completed my first deal in Jacksonville. This was a great learning experience and the team I worked with was great. There definitely some hiccups that occured but I kept chugging along. This was an older home so little things always seemed to pop up.
What made you interested in investing in this type of deal?
I had been pondering getting into real estate for quite some time. I was always looking for the perfect deal and making excuses on why not to get started. I finally was presented with a deal and ran the numbers which made sense. So I just took the plunge.
How did you find this deal and how did you negotiate it?
The deal was presented to my by my project manager that I work with. There was not a lot of back and forth with the negotiation. My first offer was actually accepted.
How did you finance this deal?
I used a hard money lender that I found on BP to finance the deal.
How did you add value to the deal?
We did a complete remodel on this since it was an older home in pretty bad shape. They biggest expenses were a new roof, HVAC, and electrical.
What was the outcome?
All though there were many hiccups this turned out pretty well. I went over budget by $8k. Partly was due to some unexpected expenses that popped up and partly due to some additional things I wanted to add to get the most on the sale. I initially ran numbers with the thought we could sell at $140-145k. During the rehab a few homes sold around us giving us great comps and allowed me to sell at $163k although I contributed $4k towards the buyers closing cost.
