Ontario Fix/Flip 2011

Investment Info:

Single-family residence fix & flip investment in Ontario.

Last deal was a joint venture w/ another investor/realtor. It's been a long time and I lost the info/photos on my old computer but basically over about 3months from purchase to sale, we took a 3br 2bath and added a br, new paint, carpet, few other cosmetic upgrades and cleared about 50k profit.

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

I attended a seminar by Armando Montelongo (it was actually awesome but I hear he's unfortunately fallen on hard times) in the middle of the Great Recession and we toured the Inland Empire where we became very familiar w/ a few neighborhoods, costs, etc. We learned a bit about rentals but mainly flips and so it was what I was more confident in executing. Oh, and this was at 25yrs old!

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

I actually came across a post on a forum Armando used to have on his website by my future partner and after meeting him, seeing the property, and running the #s it was an obvious opportunity and my partner not only managed the rehab but for every dollar he went over our budget, covered it AND through in his commission as a realtor on the sale.

How did you finance this deal?

My late father and I bought it cash. Well, my father did and cut me in for finding the deal and dealing w/ our new partner.

How did you add value to the deal?

Adding another br and cosmetic rehab.

What was the outcome?

Successful. Cleared about 50k after just over 3months start to finish.

Lessons learned? Challenges?

By adding a br, we increased value BUT we ended up w/ nowhere to eat! The house stayed on market probably another month due to this and some of the value was lost.