My first Fix and Flip

[David Jacobson]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $139,000
Cash invested: $35,000
Sale price: $200,000

This was a wholesale deal I flipped in North Houston on my own, I added new LVP flooring, knocked out a wall to make the kitchen living room flow better, repainted the interior and exterior fixed a broken water pipe over the kitchen, drywalled the entire kitchen new cabinets, granite countertops, new appliances, fixed some electrical work, fixed parts of the roof, and windows.

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

I wanted to learn and get some extra capital to continue investing.

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

I found it through a local Wholesaler. Negotiated the price after viewing the property.

How did you finance this deal?

I used a Hard money lender as well as a private money lender for the whole project.

How did you add value to the deal?

I change the layout slightly to be more desirable and brought the house back up to livable condition.

What was the outcome?

I made a small amount of money but I learned a lot. There was a lot to fix on this deal so I got experience in almost every possible category of fix a house can have from foundation to roof.

Lessons learned? Challenges?

Originally I based my ARV on for-sale comps. there were no sold properties in the area for more than a year back but 2 recent flips under contract in the area so I figured it was safe. As soon as I put down EM I found out the other 2 properties were having appraisal problems and the ARV was likely less than what I thought it would be. So lesson learned... ALWAYS base your ARV conservatively based on SOLD comps. For sale is wishful thinking.

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

HEIS Real Estate, Lending Home, Jennifer Beadles, and Agents Invest and I'm sure ill add others as time goes on.