Single-family residence fix & flip investment.
Purchase price: $105,000
Cash invested: $25,000
Sale price: $179,000
3 bedroom/2.5 bath, new kitchen, tile kitchen, entryway, bathrooms, new fixtures in baths. New hardwood floor in living room and dining room, new carpet in bedrooms
What made you interested in investing in this type of deal?
This was our first flip. Going into it, we knew it had the potential for some profit. Price was high for the neighborhood, but worth it when compared to others with no upgrades. Rejected several lowball offers and waited for our price. Got the offer we were waiting for, however their inspector wrote a book on problems with unit (he wanted to have us change structural items that the builder had built into the unit). REJECTED the CREDIT they were requesting. They ended up purchasing "as is".
How did you find this deal and how did you negotiate it?
purchased as a Short Sale
How did you finance this deal?
Using my 401K "self directed" funding thru our LLC
Note, I am over 65, so I have access to these funds without any penalty
How did you add value to the deal?
numerous upgrades, see above
What was the outcome?
For first flip, very pleased with profit (MUCH BETTER than if I left my $$ in the Stock Market)
Lessons learned? Challenges?
Having to have patience to wait for the right offer was testing. But since I did not have any payments, or Hard Money to pay back, I could wait.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
We listed the townhouse with a "flat-fee" real estate company ($450) and they put it on the MLS. We did pay the selling agent a 4% commission, which was higher than normal. We felt this would give them added incentive to show our house.
Very nice, congratulations Bruce!
Do you intend to do it again?
What was the time from initial purchase to final sale?
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