Updated 5 days ago on .
First-Time Fix and Flip in Arizona: Financing, Renovation Strategy,
Investment Info:
Condo fix & flip investment in Sun City.
Purchase price: $170,000
Cash invested: $30,000
Sale price: $295,500
This was my first flip that I jumped into with two partners.
What made you interested in investing in this type of deal?
The numbers seemed good compared to the amount of rehab that needed to be done.
How did you find this deal and how did you negotiate it?
I was informed of the deal from two contractors who kindly let me know about it and if i wanted to jump in on it since I was looking to do my first fix and flip.
How did you finance this deal?
I did the hard money loan in my name and purchased the home. I had my two partners split the gap so we all had skin in the game.
What was the outcome?
The outcome of this flip was great. We did net $96,000 that we split three ways on the back end since we split three ways on the front end for the gap funding
Lessons learned? Challenges?
Documentation and paper trails! We didn't sign any agreements. Since they were contractors who flipped. They knew the full detail of what was to be done and it was drafted but of course it changed often. I know for some fixes they used their funds that was not tracked. I financed and we had delays with doing draws as it was all our first time doing it that way. I could have been more involved rehab wise to know the why's to some things. So the next one I did on my own. The are great guys though!
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Yes, we used a real estate agent name Edith to list the property discounted since I was still working for a new home builder and couldn't sell any real estate outside of them. We used Copa Capital for financing. I feel they are the easiest lender when it comes to draws. No fees, no inspection. They only fund up to 85 though. Their process was easy and they are understanding knowing it was all our first time using them and doing a draw process.
