Lessons learned from our first deal (fix n flip)
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $985,000
Cash invested: $300,000
Sale price: $1,440,000
Westchester meets Silicon Beach in this expanded and reimagined 40’s classic LA cottage now with a luxurious master suite added. Comfortable open floor plan modernized for today’s family needs.
What made you interested in investing in this type of deal?
This was my first deal.
How did you find this deal and how did you negotiate it?
Found it as a canceled listing on the MLS and reached out to the previous listing agent. Apparently, it was pulled down because the owner was dealing with health issues. We were able to negotiate it so that she would sell it to us off the market.
How did you finance this deal?
We used hard money in the first position and a private lender who covered the down payment and rehab costs.
How did you add value to the deal?
We added square footage and updated the existing house.
What was the outcome?
We sold it off the market before even having to stage it.
Lessons learned? Challenges?
Hiring the right contractor can make or break the deal. We had to fire our first contractor and ended up having to complete the rehab ourselves. We learned the different phases of construction and how to properly manage it ourselves.
