Updated about 3 years ago on . Most recent reply
Flip in West Creek/Eagleswood NJ
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $225,000
Cash invested: $60,000
Sale price: $391,000
This was a risky flip as there wasn't many comps in the area however we highly relied on the COVID market at the time and the fact that the property was the only five bedroom 3 bathroom home close to 3000 square feet in the area. The first hard money company that we inquired with had denied the hard money loan because it was too rural of an area with not many comps however we found another hard money company that was willing to do it and it appraised at $400,000 ARV. We ended up getting 391,000 so it was pretty close and we still made a good profit on the property.
What made you interested in investing in this type of deal?
I was driving one day and I got an e-mail from a wholesaler that we work with normally. I saw that it was a huge five bedroom house in an area I NEVER heard of , but it was only $225,000. I almost couldn't believe my eyes but then it turned out that it was in a huge
flood zone, lots of wetlands, and suscept to bad storms, but the home was lifted so I felt comfortable moving forward. Flood insurance was a little pricey however in the end the deal ended up working out.
How did you find this deal and how did you negotiate it?
A wholesaler had sent it out, they had made $25,000 off of the deal they had it locked up for only $200,000 however it worked out for everybody in the end!
How did you finance this deal?
Hard Money
How did you add value to the deal?
Full Reno, removed wall from living room to kitchen.
What was the outcome?
Very profitable flip! Although the area made it rather risky, we ended up making a good return. As they say with no risk, no return this was truly having me on the edge of my seat until the day it sold.
Lessons learned? Challenges?
Go with your gut. The numbers were there, but there was doubt because of the lack of the comps in the area, but there was a voice telling me it was a good deal and I didn't pass it up. Stuck with it & it paid out nicely!
