Light rehab fix n' flip

[Kathi Spencer]

Investment Info:

Single-family residence fix & flip investment in Lakewood.

Purchase price: $350,000
Cash invested: $20,000
Sale price: $462,000

Bought during the quarantine and didn't want to put in too much money not know how or when the market would bounce back. It bounced back better than I anticipated. I used a hard money loan w/ 20% down and $1000 acquisition fee, 13% interest-only loan. I managed the project and we were in and out within 3 months.

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

Always looking for a deal and one presented itself so I went for it

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

I was called out to see about listing the home and the Seller was offered a price for the home 75k less than what I suggested she list at with no work being done and she was considering it so I offered her $50k less and she sold it to me

How did you finance this deal?

Hard money lender

How did you add value to the deal?

I have real estate knowledge from being a real estate agent for years and new what kind of timing and money I'd have to put in as well as resources for people to work on it

What was the outcome?

I made a net of $65k

Lessons learned? Challenges?

Took time away from my everyday career and it would be more worth my time to pay someone else to manage the next flip. The upside is I learned the challenges a GC faces and what things cost and how long they take.

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

I was the real estate agent so I reccomend me ;) and Cost fund 1 LLC was the lender and they were great to work with.