FLIP-ganistan

Real estate knows no boundaries.  

Dry, parched, dirty, smelly... The A/C in our our tent was busted and the showers were out of water, but miraculously the internet was up and running.  So, after a long day of working with the Afghan Army, I got a chance to video chat with my Realtor (my wife, Trisha) from more than 7,000 miles away.  She was in Jacksonville, NC and I was posted up in the desert of Afghanistan.  After telling me about her day, Trisha (7 months pregnant) informed me that she had found the a great investment property - on the MLS (believe it or not).  My immediate response - "put in an offer."  The next morning, I woke up with documents in my email ready to digitally sign and within a few weeks was the proud owner of a nearly brand new townhouse.  From there, she coordinated an inspection and based on the inspection we got the work done needed to make it competitive for a quick resale. 

I decided to write this blog because a lot of investors (or aspiring investors) are waiting for the perfect deal, at the perfect time with perfect conditions.  

There were so many reasons not to do the deal: 

- I was deployed.  My wife was in a  small town with no family around.

- We had a baby on the way.

- We barely had enough money put aside to do the deal, let alone cover unforeseen new baby expenses.  

Believe me, our conditions were not ideal, but I am so glad we decided to proceed.  

THE NUMBERS

- Purchase Price: $63,000

- ARV:  $105,000

- Repair Costs:  $8,000

- Holding Costs: $2,000

- Closing Costs:  $7,000

- Sale Price: $89,000

NOTE:  We got nervous because it was on the market "too long." So, we sold it for a price far lower than we should have.  

- Profit: only $9,000  (but, see OBSTACLES INTO OPPORTUNITIES below)

LESSONS LEARNED

- Have a plan.  Know what you are looking for.

- Always be looking or have someone looking for you. 

- Be decisive and move quickly. 

- Don't underestimate Mighty Mo.  There is power in momentum.  Get the first one under your belt and keep moving.

- Trust good comps that have been thoroughly evaluated.  

OBSTACLES INTO OPPORTUNITIES

Because we did this one extraordinarily small deal, we had private investors coming out of the wood works to lend us money because of our "experience."  We are in the Charleston, SC and have done 3 more deals using the investors that learned about us from the little deal from far away.

Mike Nicholson

-Adding Value-