Quick Pivot on 9th St W Flip: Real Estate Lessons with Tony Rigsby!

[Julie Muse]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $17,000
Cash invested: $2,500
Sale price: $13,000

Contributors:
Peter Vekselman

Partner Driven and Tony Rigsby purchased this Huntington, WV property on 7/15/2024 for $17,000, adding $2,500 in renovations. Unfortunately, a break-in led to stolen copper, making it cost-effective to take a $9,000 loss and sell as-is for $13,000 on 10/28/2024. Despite the setback, we minimized costs by pivoting and closing quickly.

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

Partner Driven was drawn to this property for its low acquisition cost and strong market potential. The affordable entry price, paired with the potential to increase value through minimal renovations, presented a worthwhile opportunity for high returns. Our commitment to cost-effective, high-impact improvements aligned with this property, making it an appealing addition to our investment strategy.

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

Our team located this deal through a local property network and assessed it as a promising investment due to its low purchase price and straightforward rehab needs. Partner Driven negotiated directly with the seller, emphasizing a quick and efficient closing process to secure the deal at an attractive price, benefiting both our partner and the seller.

How did you finance this deal?

Partner Driven utilized its dedicated investment capital, ensuring a swift cash purchase. By financing through our in-house resources, we were able to expedite the closing and streamline the investment process. This method allowed us to move quickly, securing favorable terms and avoiding third-party financing delays, which helped our partner focus on the property’s renovation and resale.

How did you add value to the deal?

We focused on targeted renovations, prioritizing necessary improvements while keeping costs controlled. The updates boosted the property’s curb appeal and livability, aligning with the local buyer market. Partner Driven’s efficient project management and marketing strategy highlighted the renovated features, ensuring the property’s attractiveness and appeal to prospective buyers.

What was the outcome?

The property was successfully resold, meeting our initial financial goals despite challenges. Through quick action and strategic decisions, the team managed to maximize the potential return. This transaction underscored the value of adaptability and strong partnerships, yielding a favorable outcome that reinforced our commitment to calculated risk-taking and fast-tracked solutions in the face of unexpected issues.

Lessons learned? Challenges?

This deal reminded us of the importance of risk assessment and contingency planning in real estate. Despite the break-in setback, our ability to pivot quickly minimized further expenses. This experience highlighted the need for vigilance in safeguarding properties under renovation and reinforced the benefits of having flexible strategies for unexpected challenges.