All Forum Posts by: Ross Cornwell

Investment Info:

Single-family residence fix & flip investment in Rixeyville.

Purchase price: $124,000
Cash invested: $50,000
Sale price: $214,000

Sight unseen foreclosure, tons of issues

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

We bought this through an online auction at Hubzu.

How did you finance this deal?

Hard Money Lender

Lessons learned? Challenges?

This was a challenge because we had to make purchase sight unseen. We closed on this property on a Monday afternoon, when we started demo Tuesday we ran into a foot of water in the finished basement. Everything had to be gutted and remediated. This was in a lower income area and we had some issues selling it. We ended up refinancing the property and selling as a rent to own. This has been a learning experience working with a bank to finance the deal and being a landlord.

Investment Info:

Single-family residence fix & flip investment in Midland.

Purchase price: $215,000
Cash invested: $60,000
Sale price: $331,250

Referral home from family I bought first flip from

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

This was a referral home from the same family I bought my first deal from. It had been a family home that was recently inherited and needed a full renovation.

How did you finance this deal?

Hard Money Lender

Lessons learned? Challenges?

The renovation here only took 5 weeks, the fastest we had turned a house. There were a few issues with the home that we could not control that caused longer days on market including very small bedrooms and closet space. This reflected in our sales price. In our initial evaluation there was a land locked parcel included in the sale. We had hoped to create a right of way to sell the back parcel but found out the lot had been illegally created in the 60s.

Investment Info:

Single-family residence fix & flip investment in Amissville.

Purchase price: $172,000
Cash invested: $60,000
Sale price: $330,000

Second fix n flip

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

This deal came from a local Uber driver. He picked up my contractor after a night out and was explaining he needed to sell his home quickly and it needed a renovation. When I contacted the owner he originally wanted $190k, We went under contract at $180k with a short study period. During the study period we found some underlying issues and were able to knock another $8k off the price.

How did you finance this deal?

Hard Money Lender

What was the outcome?

7 days on market and $60k net profit.

Lessons learned? Challenges?

The renovation here took much longer than expected. My main contractor was going right into high season and was a bit unresponsive. I was not checking progress as much as I should have and the timeline stretched out, increasing the carrying costs.

Investment Info:

Single-family residence fix & flip investment in Midland.

Purchase price: $150,000
Cash invested: $80,000
Sale price: $349,000

First Flip I completed - Talk about lessons learned!

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

This was a family friends home that was recently inherited had been vacant for a few years.

How did you finance this deal?

Hard Money Lender

How did you add value to the deal?

Everything was redone. Floors, paint, roof, HVAC, finished the basement, bathrooms, kitchen, etc.

What was the outcome?

Roughly $80k net and tons of knowledge!

Lessons learned? Challenges?

Being my first flip and having limited construction experience - managing subcontractors in terms of timing, process, and cost was tough. I learned a lot about real estate transactions and negotiations during the sale of this home.