Jasper dr, First investment after looking for 1 year.

5 Replies

Investment Info:

Single-family residence fix & flip investment in Colorado Springs.

Purchase price: $160,000
Cash invested: $40,000
Sale price: $236,000

3/1 sfr new roof, driveway, windows , fence and full interior remodel, after cost of money and realtor fees, net profit of 8k

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

Looked at return of loosing 5k or making 15k. Driveway was an expense not calculated in up front costs.

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

Found on mls, made offer site unseen.

How did you finance this deal?

Hard money, 3 points, 11% apr, financed 100% of rehab.

How did you add value to the deal?

Put 10% down plus extra rehab costs
Did most work myself. Offer was accepted because I could close quickly.

What was the outcome?

Profit of 8k

Lessons learned? Challenges?

More due diligence on rehab costs. Should have seen driveway issues.

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

Worked with newer agent.

Congratulations! I tell my mentee  a profit is a profit even if it's a dollar. Just had a new drive and porch poured.. yes expensive but in my case had it build into the budget. 

Originally posted by @August Olgren :

@Michael King between agents and lending, ya, they can hurt the bottom line. I put in about 10 weeks of time, about 300 hours.

Now we're talking! 300 hours for $8K seems like it's viable then. A good start, a great learning experience! Keep going.

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