All Forum Posts by: Nikki Kofkin

Investment Info:

Single-family residence fix & flip investment in Chicago.

Purchase price: $190,000
Cash invested: $165,619
Sale price: $493,100

Partner deal, 50/50 profit split.

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

I knew the price was good for the home. It was a MASSIVE house on a corner lot and I knew the ARV comps were solid

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

MLS, directly with the listing agent (I'm a broker myself)

How did you finance this deal?

Cash

How did you add value to the deal?

I found the deal, I knew the ARV and am very good at ARV, I helped design, I have cash

What was the outcome?

Excellent! First buyer walked away and then we had a bidding war. The profit was really good.

Lessons learned? Challenges?

One thing that really set in this time was when it’s a total gut, you can move anything (plumbing, electrical, etc) anywhere. Don’t be confined by the old configuration.

@Ashish Acharya Thanks for the advice. My accountant I work with said it was a bit out of their comfort zone to advise on, so I'm looking for an outside advisor.

Hi everyone, I am in a three member LLC as stated above. I am hoping there is a tax expert out there who can help advise on what is allowed in terms of profit sharing, specifically if only one or two members of the LLC invest in a particular deal, how the profits can be allocated (like if everyone in the LLC must be paid profits or if just the specific investors in a particular deal can be paid profits on the deal they invested in?). I am definitely willing to pay for this consultation, I really need the help!

@Josephine Wilson I meant to reply sooner! Yes it was definitely stressful to watch it sit on the market so long. I definitey would, I just want to focus more on the sold comps, and multiple of them, and how long the market times were of those sold comps. 

Investment Info:

Single-family residence fix & flip investment in Chicago.

Purchase price: $80,000
Cash invested: $71,947
Sale price: $213,400

Partner deal, 50/50 split of profit. Very glad I didn't have a loan on this one since it took a year from purchase to sale which was definitely not anticipated. Listed at $219k at the end of Jan 2020. Rehab took longer than expected. After two weeks on the market we did a price reduction to $209k. After being on the market two months with no movement, we took it off the market and and shot new spring photos, a video walkthrough, and did virtual staging.

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

I saw another home in the neighborhood very similar to it that was under contract and showed good profit margins. I should focus only on closed not under contract comps though I know better than that being an agent, that was a little risky. The home I was using as a strong comp ended up being on the market for an entire year as well and closing just a month before us. I don't want my money tied up in a flip for a year in the future.

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

MLS. The mother living there needed to move into assisted living, so the family was motivated to sell. We gave them an easy and quick way out.

How did you finance this deal?

Cash.

How did you add value to the deal?

Market knowledge of comps, attention to detail, keen eye for design, capital

What was the outcome?

When we came back on the market, we quickly had a contract and a backup offer. Both of them fell through so we came back on the market again. We had a great offer the same day. But we got over asking price because we put a new roof on for the buyer, and he walked away from the closing with a check in hand because of the closing cost credit we gave. In the end, still made a profit, we each made about $25k. Could have been worse!

Lessons learned? Challenges?

It was a buyer with a VA loan who was still active duty in Germany. He was having trouble getting a document that the lender needed which delayed closing about two months. He should have had power of attorney. We didn't realize he was located in Germany until near the end. Not bad for the first flip!

Thank you @Marlen Weber!

Investment Info:

Single-family residence fix & flip investment in Chicago.

Purchase price: $55,000
Cash invested: $143,817
Sale price: $212,000

Partner deal, 50/50 split of profit.

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

Comps in the area

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

BP marketplace

How did you finance this deal?

Cash

How did you add value to the deal?

Strong market knowledge comping properties, keen eye for design, capital

What was the outcome?

We sold quickly and made a decent profit!

Lessons learned? Challenges?

I would prefer to use plans in the future for even better layouts. Small things could have been even better with more foresight.

@Brya Freeland curious to hear how things panned out, I'll message you!

@Brya Freeland not sure why you got so much pushback for considering the south side of Chicago for investing. Also, Lincoln Park is definitely not the only expensive neighborhood in Chicago...What about Lakeview, Gold Coast, Streeterville, River North, West Loop? Not to mention so many others. But anyway, Brya there is a lot of opportunity in Chicago, especially on the south side. It's definitely worth looking into! 

Chiming in to say I totally agree with the points that @Crystal Smith and @Adriel Hsu made!