First Fix and Flip Investment Completed - Cary, NC
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $289,000
Cash invested: $80,000
Sale price: $410,000
Final thoughts - This was a great learning experience. I was disappointed that we did not realize more significant profit but was also happy to not lose money while "learning on the fly". Certainly I'd done my homework through BP and elsewhere, but actual experience was the best way to learn. I look forward to working on additional fix and flip projects now that I have one under my belt along with resources that can help me achieve the most successful outcome.
What made you interested in investing in this type of deal?
Knowing that my local real estate market had great opportunities for this type of investment, I was excited to find the "right" property to buy, rehab, and get back on the market.
How did you find this deal and how did you negotiate it?
A wholesaler (found through BiggerPockets!) contacted me about this one. I was out at the property within a few hours of his call with my contractor. After this walkthrough and analyzing the renovation costs and potential margin, we were under contract in less than 24 hours.
How did you finance this deal?
Hard money loan - 90% of sale price and 100% of renovation.
How did you add value to the deal?
Thankfully, the majority of work on the home was cosmetic rather than repairing the roof, foundation, etc. The HVAC did need to be replaced. Otherwise, we added a new kitchen, replaced a dated built-in desk area with a full pantry complete with barn door, new flooring on main living level, paint on exterior and 90% of interior, new light fixtures and repairs to electrical and plumbing (minor).
One change-in-scope to original plan was renovating the hallway and master bath configuration.
What was the outcome?
This was successful in that we sold the property fairly quickly, did not lose money on the deal, and learned from the experience. Certainly room for improvement...and we'll use that knowledge when evaluating the next opportunity.
Lessons learned? Challenges?
More critical analysis on purchase and sale comps. Could have improved on both fronts, leading to more profit.
Having the right team is crucial. This deal helped me to realize what I had already - and what I needed in terms of investor-friendly team members.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Capital 360 - Hard Money Lender
