Updated over 5 years ago on . Most recent reply
Great Flip, Home run, Easy in, Easy out (I Hope)
Investment Info:
Single-family residence fix & flip investment.
Purchase price: $72,000
Cash invested: $86,000
My reputation as an investor who can move fast with cash brought me this deal. The seller was unfortunately so far behind on federal taxes that thei gave him notice they were seizing his assets. He asked if I could buy the home (neighborhood is selling for $140,000-$220,000 for similar homes) for cash in 5 days. I offered $70,000 and we settled on $72,000. I called one of my private investors who let me the money for purchase for 10% interest for 12 months.
The seller still occupied the home and asked for a month to move. Due to the holidays, COVID-19 and my busy schedule I didn't start the renovations until May 2020. The budget for the property is below.
Paint walls, cabinets, trim and basement + wall paper removal $3,000
Flooring throughout including finished basement $5,000
Light fixtures, outlet swaps for white, misc repairs $2,000
Landscaping $1,000
Appliances $2,500
TOTAL BUDGET $13,500
Interest and estimated closing costs $10,000
Future Sales price: $139,900
Potential Profit $44,000
Stay tuned for more updates, photos and videos.
What made you interested in investing in this type of deal?
This flip was in a great area and didn't need much work. Just a face lift.
How did you find this deal and how did you negotiate it?
My reputation as an investor who can move fast with cash brought me this deal.
How did you finance this deal?
I called one of my private investors who let me the money for purchase for 10% interest for 12 months.
How did you add value to the deal?
The budget for the property is below.
Paint walls, cabinets, trim and basement + wall paper removal $3,000
Flooring throughout including finished basement $5,000
Light fixtures, outlet swaps for white, misc repairs $2,000
Landscaping $1,000
Appliances $2,500
TOTAL BUDGET $13,500
What was the outcome?
To be determined!
Lessons learned? Challenges?
One lesson is to make sure the seller (if they are still able to access the property to move or collect their belongings) have a firm timeframe to get everything out. I would have been better off moving everything into a storage bin and prepaying it for him for a few months. The seller was elderly and had a hard time moving everything on this own. As a result my contractors are having to move his stuff around to complete the work.
Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?
I am a real estate professional!