The never-ENDING Wood Street FLIP

[Michael Nugent]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $288,000
Cash invested: $370,000
Sale price: $480,000

Spanish Revival home in the Wood streets of Riverside. 3 bedrooms, 2 bathrooms, 1.5 car garage, 1,345 sq. ft. of living space and a 6,800 sq. ft. lot. Major rehab

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

I love this neighborhood and I have wanted to get my hands on a Spanish Revival for a while, plus the numbers made sense as you get as much as you put into a FLIP in this desirable neighborhood.

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

Whosaler.

How did you finance this deal?

75% Cash from an associate and 25% of my own cash, which I borrowed from 2 friends at 7% and 8.5% return for 4 month's term. The rest I put on my credit cards.

How did you add value to the deal?

We brought Spanish revival back to this home by going with light tan and bold espresso color tones inside and out. We also had made a custom rod-iron stair case with the Riverside insignia imprinted on it and Mexico made 4" talavera tiles to scream Spanish!!! We meticulously picked all the light fixtures to add more character. We enlarged the kitchen and blew the bathroom out!!!

What was the outcome?

We sold it for $30,000 more than what we planned for.

Lessons learned? Challenges?

I learned to not just jump on the 1st offer I get. Let a good product be showcased for at least a week before making a final decision. Do not beat yourself up if the 1st buyer doesn't come through and understand it just wasn't the best buyer for the house.

Challenge: Finding a really good buyer took us a while. But, we didn't stop and kept going until we found the one.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Nope.