Single-family residence fix & flip investment.
Purchase price: $228,000
Cash invested: $283,600
Sale price: $334,990
The home was a 2 bedroom 1 bathroom as per title but it actually had a total of 3 bedrooms and 1.75 baths plus an in-house laundry area. Enjoy brand new and water proof oak gray laminate flooring through out, newer HVAC, windows & shingle roof.
What made you interested in investing in this type of deal?
I loved it was so close to RCC and the price was very attractive as well.
How did you find this deal and how did you negotiate it?
I purchased it through SJO a SoCal wholesaler.
How did you finance this deal?
I paid cash for this one.
How did you add value to the deal?
We did what we do best and beautified it to the T. As always, we added quality products and workmanship. We found out that by spending just a little more you get back more.
What was the outcome?
Bought it for $225,000, total rehabbed cost was $52,000 and sold it for $335,000
Lessons learned? Challenges?
I learned a lesson I actually preach on and that is to price strategically. I first listed it at $335,000.00 when deep in-side I felt to list it $329,990.00. After 5 days of only receiving one ugly offer, hosting 2 open houses and about 80 showings; I new I had to adjust the price down. So, that is exactly what I did. On the 5th day of being on the market, I reduced the price to my original gut feeling price of $329,990, promote it hard on INSTAGRAM and received a total of 5 offer within 3 days
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Nope. Just me. I think we could have sold it faster if we staged it, but my family and I went on vacation and didn't have time to do it.
Do you honestly think that lowering the price by $5,000 brought the offers? I struggle with this all the time and actually running into the issue currently. I always want to sell for the highest amount and I figure people would still make an offer on the house, even if it was below my asking. For me personally, if I walked a house and liked it at $335k, I would still offer, its not like I would wait for a $5k price drop and then go "hell ya, lets make an offer" But maybe that's what the average person thinks....... or are realtors too lazy to write up lower than asking offers........ Always puts me in a pickle. I have a house right now that I know is worth the asking price, but showings have slowed down and I'm considering a price drop to pick up more potential buyers......always tough!
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