Updated almost 6 years ago on .
First flip and man oh man...
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $250,000
Cash invested: $50,000
Sale price: $375,000
This one was my first one and a blunder. Long story, but a great learning experience.
What made you interested in investing in this type of deal?
It was a unique house in a great location.
How did you find this deal and how did you negotiate it?
I found it through one of my Real Estate agent friends.
How did you finance this deal?
I used a hard money lender and two investors.
How did you add value to the deal?
We remodeled the entire home. Fixed the walls, updated the electrical, re-did the kitchen and changed part of the roof. The house has a unique old classical interior which we tried very hard to make it stand out, while at the same time bringing it up to modern times.
What was the outcome?
The outcome was that we sold it after about 10 months on the market, it took us forever to be able to get the home fixed. We had some issues with the financing, which also took us a while to get it to workout perfectly.
Lessons learned? Challenges?
I learned that good ethical contractors are hard to find. We got ripped off multiple times by different individuals. We had to redo much of the work and our cash reserves were completely depleted. We need to come in with more structure and have a better idea of how to qualify people to do remodel work.
