All Forum Posts by: Kisha Evans

Up front fees are always a major red flag. All fees should be included in the loan and transferred to an escrow account at closing. When people don't require bank statements, information about the property, or basically ask any questions but somehow you're approved...don't do it! New folks almost always get high interest rates and lots of points. Anyone saying 5% interest, no points and doc fees are due up front...run and report!

Investment Info:

Single-family residence fix & flip investment in Ypsilanti.

Purchase price: $72,000
Cash invested: $45,000
Sale price: $165,000

3/1 ranch, 1024 sq ft, full basement (one side finished), family room addition, open concept living/kitchen, large lot

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

I was eager to do a flip and this was a foreclosure I found on Zillow in my area, had all the elements of a good flip (3 beds, garage, basement) and it's a desirable area.

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

It was a foreclosure on Zillow, multiple bid situation, I went all in with no inspection contingency and I won!

How did you finance this deal?

Hard money and savings.

How did you add value to the deal?

Updated everything! Opening the kitchen up to the living room probably added the most value.

What was the outcome?

A beautiful house that sold for over ask in 1 day!

Lessons learned? Challenges?

Don't work with family. Budget for new everything even if you think you won't need it - then add 10%. Base your numbers on your worst case scenario so you don't lose money. If you believe strongly in something, go with your gut. Keep a super close eye on your budget to make sure you're not overspending or overbuying and wasting product/material, and to make sure you're sticking to your budget for each section/phase of the project.

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

Flip Funding (hard money lenders here on Biggerpockets).

I need insurance recommendations for flips in SE Michigan.