Updated over 2 years ago on . Most recent reply
Katy Texas Flip
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $135,000
Cash invested: $165,000
Sale price: $230,000
Very Simple Fix and Flip. Seller needed to get out and needed to leave all their junk behind. They needed a quick closing. Total Rehab took just over 3 weeks and costs about 25k. I split this in cash with a partner. Total after all closing costs on the buy and sell side, we made 52k (26k each). We now have a much bigger project we are closing on this week...and looking for more!
What made you interested in investing in this type of deal?
Having a great contractor and access to off market deals, flipping seems logical to supplement my normal realtor business especially if it takes minimal time / energy.
How did you find this deal and how did you negotiate it?
Another agent in my brokerage mentioned seller needing a quick sale. No real negotiations, we gave them what they were asking.
How did you finance this deal?
Cash 50/50 with a partner
How did you add value to the deal?
Rehab, I have a great contactor that did the whole job with his crew.
What was the outcome?
Everything was smooth. We had our first buyer fall through since they tried to renegotiate the contract during the option period. The second buyer offered without a realtor at the same price so they net was even better.
Lessons learned? Challenges?
Probably for a small deal like this, I'll do a HML instead of a partner to net more, but for this one, we split the responsibilities which was nice since we were adding baby number 3 during the flip.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am a realtor which helped with fees. I knew this home qualified for Chase's $5000 grant program, so that help with interest in the home and I know a good home loan advisor at Chase. Also, I have good title contacts that made the quick sale a very easy.
