Second Fix and Flip!
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $198,000
Cash invested: $70,000
Sale price: $340,000
My wife and I purchased this home with the help of a private investor from a bank foreclosure. There were some code violations from a car hitting the house and other neglected maintenance that we inherited when we bought the property, although the bank paid off the fees up to the date of sale. After the violations were cleared, we continued on a full rehab of the 2 bed, 1 bath house including a new kitchen, bath, refinishing the hardwood floors and other updates. I did much of the rehab along with my employees and my team of subcontractors in Stockton. I worked with a great realtor and stager to get the home under contract in roughly two weeks and sold a month after. Full time from purchase to sale was just under five months. Looking forward to starting the next one!
What made you interested in investing in this type of deal?
Property needed a lot of work and I enjoy restoring older homes. I also started a general construction company less than a year ago and gotta keep my team busy!
How did you find this deal and how did you negotiate it?
My friend who works at a small bank heard about a house they were trying to get rid of and got me in contact with his boss.
How did you finance this deal?
Private investor from purchase price and most of the rehab with a lending rate at 2 points about prime interest rate.
How did you add value to the deal?
Full home remodel and cleared violations with the city.
What was the outcome?
We sold for 10k more than planned and came in a tad underbudget. Let's call it a stand up double.
Lessons learned? Challenges?
Over-communciate with your subs/ contractor! I thought my drywall guy understood I wanted him to touch up a few areas I marked with blue tape after the home had been painted but he decided to reskim nearly the whole home a day before we were going to list it..
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Relator Zach Cantu of Stockton!
