Updated over 7 years ago on . Most recent reply
Third fix/flip $40,000 Profit!
Investment Info:
Single-family residence fix & flip investment in Sherwood.
Purchase price: $22,500
Cash invested: $50,000
Sale price: $127,500
Contributors:
Donnie Lott
This is our third fix/flip rehab project. We let it sit for a bit while we finished up other projects. This one is very special because it was a total reno. Fun project and great profits. Will sell in January 2019 after being on the market only six days.
What made you interested in investing in this type of deal?
Good location and ARV was under what the average sales price in Arkansas so we hoped it wouldn't sit on the market long.
How did you find this deal and how did you negotiate it?
MLS ~ We went back and forth with the bank for over six months making our offer over and over again on this foreclosure. It had great potential but needed a lot of work so we stuck to our guns with our price. The bank finally called us back with an offer! This will be one of those deals we will always remember!
How did you finance this deal?
Cash purchase ~ Rehab loan with small local bank.
How did you add value to the deal?
We always use premium products that make sense with our budget. We are always on the lookout for deals. Everything in the property is new, you can't beat that!
What was the outcome?
The house only sat on the market for six days and we got an offer $2,600 over asking price! We went in with an initial competitive list price because we wanted to move it. (Not that you guys don't know the feeling there!)
Lessons learned? Challenges?
Actually, we were pleased with the challenge aspect. It needed a ton of work but was a blank slate to start so didn't feel "challenging". Plus, we took our time because we had other priorities that came first so we didn't feel like it was a daily headache. Ready to tackle #4!
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am the realtor.
