Updated almost 3 years ago on .
$40k profit on my first flip using hard money
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $120,000
Cash invested: $21,000
Sale price: $279,000
What made you interested in investing in this type of deal?
The price was too good to pass up. I knew the market and I could make money on it.
How did you find this deal and how did you negotiate it?
This came from my marketing efforts and calls that my ISA that I hired handles for me.
How did you finance this deal?
Hard money
How did you add value to the deal?
Put $85,000 ($60,000 hard money) into the rehab. New flooring throughout. New cabinets, and granite counter tops, full bathroom rehab in 2 bathrooms, new windows, new wood sighting on entire outside of home, new wood deck in back yard, new paint and texture job throughout.
What was the outcome?
Listed the house and a buyers agent brought me a buyer and it closed in 3 days
Lessons learned? Challenges?
The rehab cost more than I thought. I wasted money on the $5,000 wood deck in the back. This would have been a fantastic rental and I could have refied the hard money loan into a 30 yr fixed and put a tenant in there and not have to pay 15% capital gains tax.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, Connor Bloskas at Keyzie Lending for the hard money. Emily Hohenstein at Willow Bend Title for the title work. They have become great resources.