Third Fix and Flip Deal
Single-family residence fix & flip investment in Fort Pierce.
Purchase price: $98,000
Cash invested: $1,000
Sale price: $145,000
This property was bought in an area where the property didn't need any upgrades or repairs, so I sold it in the same condition I bought it in. This particular area heavily used FHA loans, so I had to wait the required 90-day FHA Holding Period before I could resell.
A very easy and low input flip. I used hard money to finance at 12%
This was found by marketing to probate leads.
What made you interested in investing in this type of deal?
I knew what price I could flip it at, so once the seller accepted the offer it was a done deal.
How did you find this deal and how did you negotiate it?
I found this through marketing to probate leads. I negotiated as a cash purchase (though I used hard money, so technically not) and closed in 30 days. I paid for seller closing costs.
How did you finance this deal?
How did you add value to the deal?
No repairs or upgrades were required, so I resold as-is.
What was the outcome?
Profited $22,000 after taking financing, purchasing, resale and holding costs in to consideration.
Lessons learned? Challenges?
The roof was replaced in 2005, but wasn't permitted. I thought this would be a major hang up for FHA, but it turned out to be a non-issue.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
This is the second deal I used Cogo Capital for. They got the deal done, but of corse they managed to charge me some additional fees that were not mentioned up front.