First flip done and under contract

21 Replies

So after a very very long four months my first deal is done. 

It has been a intense learning experience that helped kick start my investing career. 

A quick break down.

Lead generated from: Direct mail. Zip code + 60k equity with a cap ARV of $200,000 was the list I was using

Paid: $95,000 (had under contract for 104K but mentor suggested that was too much.)

Funded: Hard money for the loan, personal loan for the down payment. Credit cards + hard money for the rehab. 

The loan was for $83,199 with me bringing 21,800 to the closing table. 

Terms of the loan: 12mo. interest only 13% with no monthly payments. with about $1600 in fees; underwriting, processing ect...

I did the entire rehab myself so a breakdown of the rehab.

Materials around 11K 

Tools around 10K (I had no tools at all I severely underestimated the price of tools in my rehab est.) 

Rehab total 21.5K

purchase closed on 5/16/19

sale listed on 10/3/2019 for 185,000

under contract 10/4/2019 for 186,999 The buyers want the house so bad they put no contingencies in the contract and offered to make up the difference between the appraisal and asking price in cash. 

The house was listed for 3 days and had over 20 showings with several offers. 

I got this house for 50% ARV when I bought the house a Tennant had just moved out and it was in move in condition there were no major defects everything was intact and working.

This was a extreme example of knowing your market. I knew that in this neighborhood the avg. house was worth 150-160 fully renovated. But I also knew that there is a huge gap in housing available there are no entry level homes in my area with high end finishes. There are 3 Navy bases in my area and as being a former junior enlisted sailor you cannot afford to live in a decent area in a nice house so thats exactly what I did. This is exactly what everyone tells you not to do ; have the nicest house in a not so nice area. I took a huge risk and went against other peoples wisdom but how many people have these results. I knew there is a lack in my market for the product I put out and it paid off. 

95,000 + 21,000=116,000 investment 

186,999-116,000= 70,999 gross 


 

nice work.  How wide are those planks in the great room?  They look huge or its just the camera lens that throwing it off.

Looks amazing man!! I’m looking for my next flip now in the Virginia Beach area. Sure would be good to get some of your resources on where you are finding homes and funding deals. 

Thank all of you for your support. This would not of happened without this site and the people on it. I would still be working my job, clueless that real estate was even an option. I have gotten of lots of advice some good, some bad, some positive, and some very negative. Every bit of it has helped me in some sort of way. I owe any success I have had and will have in the future to everybody on this site and @Brandon Turner and @David Greene for the podcast that opened my eyes.  So....... Thank you guys!!! 

Just a thought - Really the cost of the tools don’t belong in this rehab analysis.  They are a cost of doing business, but not a cost associated with this particular rehab.

Thank you @Patti Robertson and I guess your right but that was my biggest expense so I didn't want to leave it out. But you and Troy deserve recognition in this post as well. You guys have helped make this possible and been so welcoming and inspiring and helpful. I appreciate everything so much, you do so much for the community here on bigger pockets and especially in Virginia Beach  

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