Third Fix and Flip Deal

2 Replies

Investment Info:

Single-family residence fix & flip investment in Fort Pierce.

Purchase price: $98,000
Cash invested: $1,000
Sale price: $145,000

This property was bought in an area where the property didn't need any upgrades or repairs, so I sold it in the same condition I bought it in. This particular area heavily used FHA loans, so I had to wait the required 90-day FHA Holding Period before I could resell.

A very easy and low input flip. I used hard money to finance at 12%

This was found by marketing to probate leads.

What made you interested in investing in this type of deal?

I knew what price I could flip it at, so once the seller accepted the offer it was a done deal.

How did you find this deal and how did you negotiate it?

I found this through marketing to probate leads. I negotiated as a cash purchase (though I used hard money, so technically not) and closed in 30 days. I paid for seller closing costs.

How did you finance this deal?

Hard Money

How did you add value to the deal?

No repairs or upgrades were required, so I resold as-is.

What was the outcome?

Profited $22,000 after taking financing, purchasing, resale and holding costs in to consideration.

Lessons learned? Challenges?

The roof was replaced in 2005, but wasn't permitted. I thought this would be a major hang up for FHA, but it turned out to be a non-issue.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

This is the second deal I used Cogo Capital for. They got the deal done, but of corse they managed to charge me some additional fees that were not mentioned up front.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you