First Flip Completed

[Will Morris]

Investment Info:

Single-family residence fix & flip investment in Snohomish.

Purchase price: $256,000
Cash invested: $1,000
Sale price: $390,000

This was a hoarder house that I purchased direct from seller. The seller contacted me from a direct mail campaign I was running. I spent $50,000 on the rehab. I funded this project using a mix of private money and hard money.

What I learned on this project:
Always get a home inspection before purchasing a project. From the outside, the roof of this property looked fine. Multiple GC's also told me the roof is probably good. (it most definitely was not) When the buyer got their home inspection it turned out the roof was actively leaking AND the furnace was shot and dangerous. If I would have got a home inspection done before hand I would have learned about these issues, and could have negotiated the purchase price lower with the seller.

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

I found this deal from a direct mail campaign. I targeted non owner occupied with equity. I negotiated direct with the seller.

How did you finance this deal?

I used private money to fund the down payment and rehab and hard money for the purchase of the home.

How did you add value to the deal?

Complete remodel to an inhabitable house

What was the outcome?

Net Profit $15,000

Lessons learned? Challenges?

Always get a home inspection before purchasing a project. From the outside, the roof of this property looked fine. Multiple GC's also told me the roof is probably good. (it most definitely was not) When the buyer got their home inspection it turned out the roof was actively leaking AND the furnace was shot and dangerous. If I would have got a home inspection done before hand I would have learned about these issues, and could have negotiated the purchase price lower with the seller.

[Mark Safrin]

Nice!