Updated almost 7 years ago on . Most recent reply
First time flip, A LOT learned
Investment Info:
Single-family residence fix & flip investment in Portage.
Purchase price: $53,000
Cash invested: $40,000
Fix-and-flip project.
Upstairs carpet is all torn out, beautiful original hardwood revealed!
A LOT of work has been done to this point.
Rewired, new plumbing, new boiler system, opened up walls, brand new kitchen.
What made you interested in investing in this type of deal?
I wanted to try a fix-and-flip project.
How did you find this deal and how did you negotiate it?
I found this deal through a General Contractor who needed a financial partner. We negotiated 50/50 split of all profits upon sale.
How did you finance this deal?
HELOC on my primary residence.
How did you add value to the deal?
Complete rehab from wiring, plumbing, exterior, roof, flooring, cabinets, appliances, and much more.
What was the outcome?
We are still working on this house. It will be ready for marketing by the end of January 2019.
Lessons learned? Challenges?
Will not invest in a pre-1900s house. All outdated utilities. Ran into too many unforeseen costs. Holding costs went 4 months past initial assessment. Always have a construction crew ready to go! We've had a lot of 'unskilled' laborers do no-call no-shows, sick calls, or just quitting the day of work.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
Paul Robertson of Fix-n-Flip Corp has been great to work with as we learn this process together.
