First Flip Investment - Make your money on the Acquisition!
Investment Info:
Townhouse fix & flip investment in Halethorpe.
Purchase price: $183,000
Cash invested: $54,000
Fix and Flip done and listed on the market now for $275,000. Listed and just waiting to cash out!
What made you interested in investing in this type of deal?
Wanted more capital in order to acquire a BRRRR in the Midwest. I am usually not for flipping, but so unbelievably grateful for the experience and the team I got to assemble. Also, it brought me closer to my family.
How did you find this deal and how did you negotiate it?
Found this deal through one of my family friends. They were looking to sell their house, didn't move things out or do the rehab but acquired another property. After having two mortgages, I asked if I could take their problem on for a discounted price and the deal worked for both people.
How did you finance this deal?
Financed this deal through hard money with HouseMax USA found here on Bigger Pockets. Learned lots of valuable lessons such as the draw money process and how that works. Psssst you do not receive the money for the rehab up front, they reimburse you after each draw based on what you have done!
How did you add value to the deal?
Added value to this deal by updating the countertops in the kitchen, new fridge and range hood, new paint on the cabinets, fixed and cleaned single pane windows. Painted entire house and did completely new flooring for entire house. Installed barn doors and finished basement completely with framing and drywall, installed recess lighting and baseboard around the floor. Left opening for louver doors so the HVAC and Hot water heater were accessible as well as sump pump. all three bathrooms tiled
What was the outcome?
Still waiting on the outcome.
Lessons learned? Challenges?
So many lessons. Biggest one- do a background check on your contractors. Know where they are from, if they are licensed, etc. Work with people local if possible that you can talk things over with in person, it'll help you learn their systems and help you upgrade yours. Hire out what you cannot do for a flip since its a time constraint. Be strong in negotiations with contractors.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, Martin Willigan in Catonsville Maryland is a strong professional that will get the job done no matter what.
