102K Net Profit on our first flip deal!

[Frank Sanchez]

Hi Everyone,

This is my first success story I am writing! I am not one to brag, however after listening to BP, it seems this is the place to be. My partner Larry Friedman and I used to own a large residential brokerage in Manhattan (Coldwell Banker AC Lawrence) since 2006. We realized brokerage was not a wealth building business and started a JV with a construction company that rehabbed homes in PA. This was a great way to learn and completed 4 successful projects together. At this point my partner and I knew we wanted to start an investment company that purchased undervalued assets. We quickly formed SDF Capital. www.sdfcapitalllc.com . Shortly after that we were introduced to Homevestors and purchased a franchise.

Now that you have the background, we can get to the story! Our first deal on our own we purchased a SFR for $350,000 in a very sought after part of Yonkers, NY. 206 Westchester Avenue, Yonkers NY 10707. The property appraised $50,000 below what we needed for our financing. Which means we had to come up with around $200,000, which included the rehab of $97,000. We were very nervous and started to become shaky with the comps. It was our first flip on our own and we were personally guaranteeing a lot of money! Given the appraisal came back low we almost killed the deal. We decided to take the risk, put in a ton of our personal money and raised money from friends. We closed on the house, completed the rehab in 44 days and sold it for $620,000 after 4 days on the market! After we closed and paid back lenders, ourselves, and closing costs, are net profit was $102,000.

It’s been one year since we joined Homevestors and have completed 4 rehab projects, acquired 9 rental units, and have a bunch of new rehab projects in contract.

Please check us out at www.sdfcapitalllc.com . Our goal for the end of the year is to expand to an office, increase our buyers, have a small brokerage that is cousins with our investment firm, and own 20 rental units. Would love to connect with anyone on BP. Especially in the New York Tri-state area.

Best to all,

Frank