Our First Fix & Flip Project
Investment Info:
Single-family residence fix & flip investment in Pittsburgh.
Purchase price: $160,000
Cash invested: $200,000
The sellers originally listed this property on the market for $250k but after months on the market we managed to purchase it at the favourable price of $160k.
The property requires a full top to bottom rehab but we are preserving a lot of the character elements of the property such as the original fireplaces and the broad staircases. We expect to sell by June 2020 for $500k
What made you interested in investing in this type of deal?
Although we are primarily buy and hold investors, the fix and flip business helps our cashflow and drives the growth of the main business.
How did you find this deal and how did you negotiate it?
We found this deal on the MLS. It had been on the market for about a year with no activity and so we went in with a low ball offer and settled at a a very favourable price.
How did you finance this deal?
We lost about $15k on day one actually due to the financing structure. We had brought the deal to one of our best bank partners and in a freak turn of events they couldn’t process the loan in time for closing. We had to close with a hard money lender which was very expensive. We eventually refunded the loan with our preferred bank but not before losing a boatload of cash to the ‘hump’ in the road.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Chris Clark at Riva Ridge Real Estate Services in Pittsburgh is a master at real estate who we try to work with on all our deals. Adar Ben-Lapid at Coldwell Banker in Squirrel Hill is a top level realtor who is one of the major catalysts for the early growth of our business.
