Mawman Project (single family, off-market)

[Chris Varsek]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $16,000
Cash invested: $80,000
Sale price: $148,000

Purchased home for $16,000 from an estate. Complete renovation including electrical, plumbing, roofing, and major structural. There were some unexpected costs like a roof that we had to replace and rewiring the home, but we brought in under budget, and was able to produce a great profit!

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

It was local to me, and I saw it as an opportunity to make a difference in the housing stock in the area.

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

The deal was brought to me by a family member, who put me in touch with them

How did you finance this deal?

I was actually able to pay cash for the purchase and closing costs, and then worked with a private equity investor to fund the construction and holding costs

How did you add value to the deal?

I managed the flip project, and found the contractors

What was the outcome?

There was a 32% return to the investor team at the finale of this project

Lessons learned? Challenges?

Due diligence is key, as is having more cash ready for unexpected issues b/c they WILL arise.

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

I am the real estate agent that managed the purchase, construction, and sale of this hoem.