Fun Fix n Flip in North Charleston South Carolina!

Real Estate Deal Analysis & Advice
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Fun Fix n Flip in North Charleston South Carolina!

Stephen Richerson
Flipper/Rehabber · Nationwide · Member since 2015 · 64 posts · 50 votes

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $93,000

Sale price: $181,000

Purchased from online auction. Raised the money for down payment and rehab so $0 out of pocket for this deal. 

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

auction.com not much room for negotiating.

How did you finance this deal?

Hard money lender, Lending Hq. Private lenders.

How did you add value to the deal?

Either painted or replaced just about everything.

What was the outcome?

Under contract very quickly at asking price. Over $30k in profit.

21Reply
142 views

Most Popular Reply

Victor Armendariz
Specialist · Beaverton, OR · Member since 2019 · 3 posts · 1 vote
7y

Thanks for sharing! As a newbie really love seeing how important it is to know the numbers.

1Reply
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  • Mike Bargetto
    Insurance Agent · Phoenix, AZ · Member since 2014 · 148 posts · 66 votes
    7y

    This looks fantastic. Great job. 

    0Reply
  • Brad Baker
    Flipper/Rehabber · Charleston SC · Member since 2019 · 78 posts · 43 votes
    7y

    @Stephen Richerson the rehab looks great! What was the timeline from start to finish and how long did it take to fix/sell/close?

    0Reply
  • Stephen Richerson
    OP
    Flipper/Rehabber · Nationwide · Member since 2015 · 64 posts · 50 votes
    7y

    @Brad Baker 5 months from close to close.  2.5 months on rehab (crappy painters in this state), first contract fell through from a bad appraisal.  Back on the market and under contract within days. 

    2Reply
  • Ray SeamanBusiness Member
    Investor · Tallahassee, FL · Member since 2017 · 15 posts · 10 votes
    7y

    Awesome work @Stephen Richerson! Wanted to ask about the financing part of this deal. The hard money lender loaned you the funds and a private lender provided the funds for the downpayment, correct? Did the hard money lender need persuading on that or was the private money lender not in a second lien position?

    [email protected]850-757-3681
    Ray Seaman, Dalton Wade Real Estate Group526 Reviews
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    0Reply
  • Jahmal Johnson
    Member since 2019 · 1 post · 0 votes
    7y

    Looks nice. Good job with the re-hab. 

    0Reply
  • Bryan Quinn
    Member since 2018 · 6 posts · 2 votes
    7y

    Nice! I've always been hesitant investing in N Chas but you proved it's doable. Awesome and inspiring!

    1Reply
  • Sid Montero
    Member since 2019 · 19 posts · 2 votes
    7y

    Looks terrific!! Thanks for sharing.

    0Reply
  • Lupe Cartagena
    Member since 2019 · 15 posts · 2 votes
    7y

    First off, I would like to say congrats! 

    Question- So you raised enough money to purchase the home with all cash? In Ca, auction.com is all cash. Very rare to find one that will accept anything else? 

    Also, Can you give us a little insight on how you convinced hard money lenders and private investors to lend you the money? Is this your first flip? Thank you in advance for your response. 

    0Reply
  • Stephen Richerson
    OP
    Flipper/Rehabber · Nationwide · Member since 2015 · 64 posts · 50 votes
    7y

    @Ray Seaman, great question. The private lender did take a second position via mortgage. HML did not need persuading. I know many lenders will not allow additional liens on the property however I work with some flexible individuals and have structured several deals this way. The current flip that we have on the market is a seller financed deal and my investor created a line of credit w/2nd mortgage which funds the rehab, holding and debt service. That took some convincing for the seller to agree.

    3Reply
  • Patrick Flanagan
    Rental Property Investor · Queens, NY · Member since 2018 · 14 posts · 3 votes
    7y

     Awesome work!

    We’re you able to see the inside of the home before the auction? And how long did you have to collect funds for closing?

    0Reply
  • Todd Campbell
    Investor · Austell, GA · Member since 2014 · 101 posts · 21 votes
    7y

    Wow, that look fantastic! Super congrats!!! 

    0Reply
  • Randy Coker
    Pearland, TX · Member since 2016 · 15 posts · 2 votes
    7y

    Why does the brick look so different?

    0Reply
  • Warren Johnson
    Specialist · Memphis, TN · Member since 2019 · 24 posts · 3 votes
    7y

    great job!!

    0Reply
  • Daulton H.
    Rental Property Investor · SC · Member since 2017 · 37 posts · 35 votes
    7y

    Great Job Stephen! Excellent finished product. 

    0Reply
  • Brian Lops
    Member since 2019 · 1 post · 0 votes
    7y

    this looks so good way to go!!! With auction.com did you have to pay all in cash? Did you set that up with your HML before you went to the auction and just set a price limit? What was your payback on the loan?

    0Reply
  • Yolanda Stewart
    Member since 2019 · 1 post · 0 votes
    7y

    Congrats! Beautiful job

    0Reply
  • Selina Banda
    La Vergne, TN · Member since 2016 · 93 posts · 28 votes
    7y

    Beautiful, nice work

    0Reply
  • Joe P.
    Philadelphia, PA · Member since 2017 · 824 posts · 1k+ votes
    7y

    Beautiful job! Was this not an opportunity for a BRRRR or was the mindset flip from the get-go?

    Mind sharing your rehab numbers and what you ended up making on the deal?

    0Reply
  • Antoine Bellamy
    Member since 2018 · 1 post · 0 votes
    7y

    Wow look's really great congratulations!

    0Reply
  • Barry Brown
    Member since 2018 · 8 posts · 3 votes
    7y

    Well Done, Beautiful work

    0Reply
  • Tony Hill
    Rental Property Investor · Long Beach, CA · Member since 2016 · 12 posts · 4 votes
    7y

    Great Job Stephen and very inspiring. What was the cost of the rehab from start to finish?

    0Reply
  • Stephen Richerson
    OP
    Flipper/Rehabber · Nationwide · Member since 2015 · 64 posts · 50 votes
    7y

    @Lupe Cartagena Thank you. I was concerned about that with auction.com and it took some investigating to find that when they say cash they mean no conventional bank institution. A HML's money is cash in their eyes. It didn't take much convencing. However I would say that 95% of HMLs do expressly prohibit additional liens. Not my first flip.

    3Reply
  • Stephen Richerson
    OP
    Flipper/Rehabber · Nationwide · Member since 2015 · 64 posts · 50 votes
    7y

    @Randy Coker.  I would say the brick looks different because of the power washing,  color cast light from the time of day, and color corrections from my professional photographer taking the final pics vs. the realtor shooting it with their phone

    1Reply
  • Stephen Richerson
    OP
    Flipper/Rehabber · Nationwide · Member since 2015 · 64 posts · 50 votes
    7y

    @Brian Lops. Auction.com sees hard money as cash. They don't want conventional loans. No, I had the analysis and knew my top dollar. Won the auction, then submitted my deal to Ground Floor Finance who rejected my deal stating that it's ARV would not exceed $141k (I enjoyed proving them wrong). So at the last minute I scrambled to find a local lender who liked the deal.

    Payback on the loan.  I requested that he differ interest payments and build it into the loan which was cashflow friendly not having to make monthly payments. 3.5 % points and 12% annual with a 4 month minimum.  

    2Reply
  • Stephen Richerson
    OP
    Flipper/Rehabber · Nationwide · Member since 2015 · 64 posts · 50 votes
    7y

    @Joe P. I have little interest in sfh rentals.  I am working on multi's.  My first buyer's appraisal almost killed that plan and we considered making it a corporate rental which would yield $2500/month and have little impact of the updated asset.  $40k for rehab but my costs were around $30k which is how I structure deals to be paid as a project manager.  Profit plus rehab revenue was around $35-40?? 

    1Reply
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