HELP!!! Stale fix and flip dilemma

[Grant Griffiths]

Hello everyone!

Here is the scoop. Although I have been a broker for 4 years and have been involved in 6 fix and flips (keeping contractors on schedule, running numbers, being particular with the details, marketing), this is the first time I raised private money, 30k. Although small in the scheme of things, these investors have plenty of capital and a network more, so I need to deliver.

My business partner purchased a property back in December under HIS business using hard money. We met a few months after he formed his LLC, so that is why I don't have any equity in the business. We are splitting the profits 60/40 him. I brought in 2 private money investors and am offering 10% plus $500 per month starting in May.

Purchase price and closing costs: 288k

ARV: 395k

Holding costs: 2.5k/mo

Our initial plan was to wholetale the property, minor landscaping and cleaning. The property needed cosmetic work and given the area, knew it was under market value. Tried that for 2 weeks and quickly realized people want a turn-key home.

Next, we decide to flip the property. Do all the cosmetic work and turned out to be 45k. Comps were in the high 300's. We listed February 15th for $395k, have received 1 offer (after we countered the buyer's literally went MIA. I hope they aren't dead), 43 showings and nothing else. I am getting a few rooms virtually staged and that will be ready on Friday. Feedback has been:

-Less desirable school district

-Small kitchen

-Backyard backs to apartment complex

-Not enough space

We have had 1 interest in renting, but they wanted too low of a monthly rent. Rent comps are $2.2-2.5k.

Currently, we are @377k and 360k is our break even with all closing costs.

I asked my partner if he would be interested in a refi and he said not right now due to his other business ventures.

My main concern is paying back my investors ASAP. We obviously would like to sell and get it off the books, but a lease option could be attractive if we could refi, get more desirable payments and have positive cash-flow.

It seems like another massive price reduction is in order, but if we drop down to close to the break even number and STILL don't have any offers, then what? Looking at any and all options.

Thank you,

Grant