Updated almost 2 years ago on .
First flip of my real estate career
Investment Info:
Small multi-family (2-4 units) fix & flip investment.
Purchase price: $210,000
Cash invested: $40,000
Sale price: $389,900
This property was my first official purchase of my real estate investing career. I started my company shortly after graduating college with a degree in finance and economics (and after reading rich dad poor dad). I began wholesaling properties to investors I met through bigger pockets, and networking. Using the small amount of capital from these wholesales I was able to purchase this duplex in Biddeford Maine which needed a full interior and some exterior remodeling. It was a classic case of an out of state owner, who had bad tenants, and an even worse ability to manage properties.
This building came with many challenges, especially to a 22 year old who had no experience with real estate. Dealing with minimal capital, expensive costs of hard money, nosy neighbors, and having to evict a tenant were just some of the difficulties. However, as real estate will teach you, hard work and perseverance will go a long way, as I was able to gross ~$130,000 on the sale of this property. All the renovations were completed by myself and my father (a longtime homebuilder), and were the result of innumerable hours of work. This deal has allowed me to finance many more purchases of real estate and ultimately has made my career so far.
What made you interested in investing in this type of deal?
It checked all investment boxes.
How did you find this deal and how did you negotiate it?
I got this deal through mailers, and negotiated through email.
How did you finance this deal?
Purchased with a Hard Money Loan, from a private lender I have used for every deal ever since.
How did you add value to the deal?
Completely rehabbed the property.
What was the outcome?
A gross profit of ~$130K and net of about ~$85K.
Lessons learned? Challenges?
Hard work pays off!
