Updated 5 days ago on .
Fix and Flip in Phoenix Metro: Lessons Learned, Renovation Costs, Breakdown
Investment Info:
Townhouse fix & flip investment.
Purchase price: $75,000
Cash invested: $65,000
This is a fix and flip project I am doing. Got this property for a great deal. Going through the rehab now.
What made you interested in investing in this type of deal?
This was a good deal number wise and condition of the home. I bought the property for 75K. This is s 3 bedroom, 2 bath townhouse at 1628 sqft with a two car garage.....i know right. The appraisal came back valued at 265K. so at 75K with a rehab estimated at 65K I'm in 140. Even if i do go over budget, or it may take longer to sell, the spread for this property is worth it.
How did you find this deal and how did you negotiate it?
I got this deal from a wholesaler in my investment group with Pace Morby. Subto and Gator
How did you finance this deal?
I did hard money and my capital. I have private money lenders who funds were tied up to where they were not able to invest in this deal with me. I didn't mind for this one to show that I can use my capital to invest, as I will showcase this for capital raising.
What was the outcome?
The home is still in progress, so stay tuned.
Lessons learned? Challenges?
Lessons learned so far: Closing and lenders. Having a good lender is everything, just like it is for a good construction crew. This was a stressful closing for me, but I was determined not to let this slip by. The closing date was originally 7/18 and it couldn't be moved. When the deal was presented to me; I had a week to do my due diligence and secure lending. There was a lot of back and forth for this closing and a delayed one but it got done.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am a real estate agent and I have my lenders. I would recommend Capital Fund 1. I didn't use them for this one because they would only fund up to 75% and this lender I went with funded 90%...as a headache it was dealing with them; their numbers worked better. Make sure you know the areas your preferred lender services before you lock up a property. My go to lender was Copa Capital but they didn't service Casa Grande. So a lot of bouncing around to try and close in a week...that didn't happen.
