Looking for a Private Investor for SE OK property...

[Krysty Underwood]

I've got a house I'm planning to have under contract by Wednesday, 12/23. I'm looking for a private investor to fund the project. It's a foreclosure that would be a great flip. Here's the basic rundown of the numbers:

Purchase Price: Asking $48,500, but the realtor thinks they make go $42,500

Rehab Cost: $12,500

Closing/Misc Costs: $6400

ARV: $120,000-$130,000

Most Recent Appraisal: $119,000

Projected Net Profit: $52,600

Rehab time: 8 weeks

These are very conservative numbers, and profits could reach as much as $63K. I'm willing to do all the leg work and run the project, supervise the work, do some of the work myself to save us even more money. I have a rehab cost breakdown, investment analysis, and photos showing exactly what repairs need to be done. I've got a contractor ready to go and a real estate agent and title company waiting. 

This is a foreclosure property that can't sell to the typical home buyer due to a foundation issue that can be fixed for roughly $4K. Rest of rehab is cosmetic and repair of damage from the foundation issue. Traditional lenders are not willing to do a conventional loan until the foundation is taken care of. This property has been under contract several times since being on the market, according to the realtor, but the funding always fell through. 

Here's what I'm looking for from an investor: I need at least 90% financing on the entire project, but preferably as close to 100% as possible, which is about $60,000. I am willing to put some skin in the game, but I just don't have much to put in personally. I'll be pulling from my IRA to do so, but I'm willing to because I believe that real estate has a much higher return than mutual funds, especially in the long run.

Here's what I'd like as far as terms: 12% financing AND split the net profits 50/50. I think these terms are fair, but I'm willing to negotiate to get this deal going as soon as possible. I would consider wholesaling this, but only as a last resort. It makes much more sense financially and to gain the experience for me to work the flip and bring in $20-$30K on my end in 2-3 months versus a couple thousand fee for the two weeks I've put into researching this project.

I'm just going to be up front on this because I believe honesty will build trust with the person I'm hoping to be a long-term investor. This is my first flip. I attempted a flip in 2006, but it was a long-term live-in flip with a balloon note with terrible terms, and I was only 22 years old and very, very naive. I went in with no real plan, no exit strategy (I didn't even know what that was back then), and no investor to help finance the project. I ended up losing my job and my house in the crash, and it's taken a long time for me to recover. I regret the mistakes I made on this previous project, but I'm not ashamed of those mistakes, and I'm not going to hide them or pretend I was anything other than ignorant and probably just plain stupid at the time. I've learned from that mistake, and I've done my research this time. At 31 now, I've learned enough to realize just how much more I need to learn in this industry! I won't go to the table without a wise investment partner to reaffirm that this is a good deal and that I am making the right move this time. If you're willing to take a risk on a newbie flipper who's learned her lessons the hard way, please contact me.

This house will NOT stay on the market now that the bank has opened it to investors, and I can only secure a contract for 7 days. We need to close fast, so I need an investor who's ready to go now on this project. If you are interested, please contact me through Bigger Pockets messaging or my email at [email protected].

After this flip, if the investor would like to continue flipping with me, I'll be more than happy to bring property after property to you. I've got leads on several more in the area, and research is something I very much enjoy. Looking forward to a long-term investment partnership!

Thank you,

Krysty