Fix and flip with no money out of pocket

[Burt Lovejoy]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $240,000
Cash invested: 

This was a partner deal. The partner came to the table with the purchase funds. I came to the table with funds for repairs, which I borrowed from another person. I did all the work myself. This house is currently on the market, after I completed all repairs.

What made you interested in investing in this type of deal?

I was interested in the possibility of earning significant cash without spending my own money

How did you find this deal and how did you negotiate it?

I have been connecting and networking with wholesalers. This one was brought to me by a wholesaler. After finding the deal, I went out in search for a partner.

How did you finance this deal?

I made arrangements with a partner to purchase the property using his cash. I borrowed the funds for repairs, which was $20K from a friend at 10% interest for a short term loan of 6 months. I made an agreement with the partner that I was going to fund the repairs, and do all the work myself. We plan to split the profits 50/50.

How did you add value to the deal?

I spent 3 months working on this house every day to do all the necessary repairs. The house had mold, and needed a lot of repairs. I replaced all flooring, bathrooms, kitchen counters, paint, did significant drywall repair, roof repair. All interior and exterior doors were replaced, electrical repaired, plumbing repaired, and yard cleaned up.

What was the outcome?

This house is on the market for $375,000. Since I am a Realtor, I am taking my commission from the sale as an expense before splitting profits. Including my commission, I will clear $50K profit when the sale closes.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I am an agent who represented myself and the partner on this deal