First house flip! Weed, California (yes, that is a real city)

[Scott Asselin]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $109,010
Cash invested: $63,976
Sale price: $188,000

Real estate investing partner found the deal and handled all repairs. I put up the cash for everything (the purchase, all repairs, closing costs, utilities, etc). I made a profit of approximately $15,000 after all expenses and profit payout to the investor partner.

What made you interested in investing in this type of deal?

The profit potential was there. This was my opportunity to be a part of a flip remotely while I worked a full-time accounting job.

How did you find this deal and how did you negotiate it?

An investing partner came to me with this deal, which he had found on the HUD Homes website. We put a bid in and got it.

How did you finance this deal?

I paid all cash on this deal.

How did you add value to the deal?

Rehab was completed to bring the condition of this property to the condition expected in the neighborhood.

Lessons learned? Challenges?

My investor partner missed the mark on some of the repairs- the property sat unsold for months as a result. I ended up hiring a broker to go into the property and give me her recommendations as to what needed to be done to get it sold, let contractors in, etc. I bought out my partner's 50% share and handled the remaining repairs myself.

Profit should have been much higher but overall I am pleased, as I learned a lot and got a flip under my belt.