Quick Fix and Flip in Sacramento

[Michael Miller]

Investment Info:

Single-family residence fix & flip investment in Sacramento.

Purchase price: $207,000
Sale price: $294,000

Another great flip found through code violations. These are the bread and butter type of flips that our team has become very successful in doing: a low purchase price, beautiful rehab job, a quick offer above asking price, and a smooth resale process all done in the span of 4 months.

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

Found through code violations given to us by Sacramento County. Owner lived out of the area and wanted nothing to do with the property so we made him an offer he liked and closed quick.

How did you finance this deal?

Hard money loan

What was the outcome?

Resold very quickly at asking price

Lessons learned? Challenges?

We should start looking for backup workers other than our main handyman, he knows we are very reliant on him and he works very slowly because of that. Keep properties in trusts or entities because this one needed to close before we could purchase another investment due to the owner having too much liability in their name; if this is property was in a trust we could deflect liability from the owner onto someone else. Very smooth transaction process once the long rehab was over

[Michael Miller]

@Dave Spooner code violations have been good to us since they can be less competitive but are tricky to obtain the data sometimes. I did this one a year ago so off the top of my head I think we put about $30k or $35k into rehab. Since then we have been working to find some more reliable and cheaper labor. The guy we worked with on this one was great for us before and really rubbed us the wrong way on this deal