Updated over 6 years ago on . Most recent reply
A flip that didn't work out as planned
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $60,000
Cash invested: $90,000
Sale price: $100,000
This was a flip where things didn't go as planned. We bought it as a short sale in a desirable neighborhood. We mismanaged the renovation and never completed the project. We ended up selling it to a landlord who finalized repairs and rented it.
How did you find this deal and how did you negotiate it?
It was a short sale brought to us by the listing agent.
How did you finance this deal?
Cash
How did you add value to the deal?
We started a major renovation project, yet we went through three contractors before deciding to sell the unfinished project to a landlord.
What was the outcome?
We wasted our time and learned valuable lessons. Thankfully we bought it low enough that we recouped our money.
Lessons learned? Challenges?
I allowed a business partner to run the renovation, and he picked low bidder contractors who failed to complete the job. I should have taken a more active role in the renovation, or perhaps I should have encouraged the sale right away to another flipper.
