Updated almost 5 years ago on . Most recent reply
My First Hands On Fix and Flip
Investment Info:
Single-family residence fix & flip investment in Slatington.
Purchase price: $45,000
Cash invested: $55,000
Sale price: $130,000
This was a bank owned property which they were selling for around $65,000, then we negotiated to get it lower by $20,000.
What made you interested in investing in this type of deal?
After making my analysis I noticed it was bank owned, so I made an offer.
How did you find this deal and how did you negotiate it?
I was presented with this property with my realtor.
How did you finance this deal?
I got a hard money lender to fund it, then private money to pay for the down payment and monthly payments, with the promise that the deal will pay them back with a good return in total.
How did you add value to the deal?
We upgraded the kitchen, renewed the floors, added stainless steel appliances, then made the attic a finished bedroom.
What was the outcome?
It's still for sale, at around $130,000 from originally posting it for $165,000.
Lessons learned? Challenges?
Make sure to have the scope of work detailed correctly before moving forward with the project. It could lead to a surprise.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I had my agent present the deal to me and a hard money lender work with me on this project.