From Fire Damaged to Profit

[Ronnie Galindo]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $98,000
Cash invested: $60,000
Sale price: $218,500

I Purchased a fire damaged property that I funded with Hard money in March 2021. Property was a 3 bedroom, 2 bathroom, 1,791 square foot home that suffered a loss due to fire. I purchased it and after several hiccups and problems with the contractor I had on the job, it was finally completed and sold in October 2021.

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

The property was on the MLS but seemed to hit all the boxes when looking at the numbers.

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

I found it through my agent sending me properties off the MLS. There were 40 offers on this property.

How did you finance this deal?

I put in my own money for the down payment, utilized hard money for the rest of the purchase and 80% of the rehab. I also had to come up with the rest of the rehab costs. Overall, my input was around $60,000.

How did you add value to the deal?

Full renovation to include a new roof and all new inside.

What was the outcome?

Sold the property for a $20,000 profit.

Lessons learned? Challenges?

Use a contractor for one deal, stay on top of them if you have never worked with them, and ensure you get pictures of everything! This project was supposed to be a 45-60 day project. It took over 180 days due to lack of communication and stalling from contractor. Also took several re-visits from contractor as well as hiring outside help to fix problems that were found in inspections.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

At selling, I worked with Chris Bounds! I would highly recommend him to all investors in the Houston area!