My first fixer
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $180,000
This is my first fixer currently under construction with a estimated completion at mid April 2024. This is beyond my skill level as a rookie but I have been blessed with a GC who has also become my mentor. There is still some work to go but the heavy lifting is done with the bones and mechanical. Now it's onto making it beautiful with new everything inside, laundry room, and curb appeal.
What made you interested in investing in this type of deal?
Transition from employee to employer. Having the time to give to my growing family is a top priority. With 3 kids at 3 different stages, locations, and times makes it extremely difficult for both my wife and I to have a 9 to 5.
How did you find this deal and how did you negotiate it?
I found out about this deal by word of mouth and negotiated it by matching wholesale offers.
How did you finance this deal?
I paid cash out of pocket.
How did you add value to the deal?
I added value by describing to the seller the positive impact they will have by selling to me vs. a wholesaler.
What was the outcome?
The outcome is TBD but we are confident in making a profit based on the purchase price.
Lessons learned? Challenges?
One lesson learned is that the closing and purchase process could have been more efficient. We could have paid the seller and took over the mortgage reducing cash out of pocket at purchase. Another lesson learned is knowing when to make a contractor change which we did.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I worked with an investor who is also an agent prior to purchase. We walked it, discussed numbers and they provided construction references.
