My third flip back in 2012
Investment Info:
Single-family residence fix & flip investment in Minneapolis.
Purchase price: $92,900
Cash invested: $65,000
Sale price: $226,000
My third flip in 2012
What made you interested in investing in this type of deal?
I could immediately tell from the pictures that this house had "the bones". Beautiful craftsman woodwork, large inviting entryway, and a huge master bedroom upstairs.
How did you find this deal and how did you negotiate it?
I found this through the MLS as I am a licensed broker. The negotiating was pretty straight forward. Multiple offers, but I had built rapport with the trustee that I bumped into at the showing.
How did you finance this deal?
100% of my own cash.
How did you add value to the deal?
Added a 3/4 bathroom upstairs to service the large master bedroom. Full renovation, and kept many of the original features and charm. Exposed the brick chimney in the kitchen which added a nice bit of eye candy and flair.
What was the outcome?
It was excellent. We asked $240K and had a full priced offer immediately. A local appraiser screwed me with a low appraisal, so we decided to split the difference and we took $226K.
Lessons learned? Challenges?
I was the first person to see the house within an hour of it listing. I spent maybe 10 minutes there, and proceeded to head towards the front door so I could get my offer in. On my way out, I noticed a woman in one of the bedrooms going through some paperwork. I had made it all the way outside, and decided to turn around, having a hunch she was involved with the home. I told her I would restore the home, let her come and see it, and let her know I was making a full cash offer. This did it!!!
