My First Flip - Fort Worth, TX

[Brandon Cuellar]

I closed on my first flip last month and wanted to share my experience so far. Quick background about me, I'm a sales manager at a Honda dealership and have completed one wholesale deal earlier this year.

Location: Fort Worth, TX

Type: SFM 2 bed/1 bath (768 sqft)

Price: $53,500

Rehab: $20,000

ARV: $100,000

I found this deal on Facebook marketplace. It was posted by a realtor who was helping a couple wholesalers move the property. I contacted her and got some info on the property. She posted 2 houses that are right next to each other that were almost identical and the same price (one vacant and one occupied). After seeing how much crap was in the occupied property, I opted for the vacant property.

The property was listed for $55,000 and after looking at the comps in the area, I decided the ARV would be right around $100,000. The property needs almost everything so I budgeted $20,000 for the rehab. I initially offered $50,000 but we settled on $53,500. 

Now that we had the sales price agreed to, the next part was a bit tricky. The realtor didn't to show me the contract between the seller and wholesalers because they didn't want me to know how much they were making on the deal. I expressed to them that I'm not taking on a contract that I've never even seen. Turns out, the wholesalers had a one page contract signed with the seller that I wasn't comfortable with so I asked that they resign the seller with a TREC contract. The wholesaler had never used one so I drew it up for them and they had the seller sign it after a few days (the seller was in their 90 days so they had to have her sign in person). Finally, I signed the assignment on April 30th and we were able to close on May 7th.

I funded this deal with a personal line of credit through my local credit union for $30,000 (8.95%), partnered with my mother-in-law and she put in $15,000 and paid the rest with my personal funds. I plan on funding the rehab with my personal funds.

So far I have done the following rehab:

Foundation: $3,400

Roof: $3,000

I found a contractor that is going to do the cosmetics (inside and out) for $5,000 + materials so he just got started last week. I'm excited to see how the property turns out and to get it on the market.