Flip Property Right Before Covid-19

[Nathan Benich]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $223,500
Cash invested: $60,000
Sale price: $350,000

This is a beautifully remodeled 4 bedroom, 3 bath, 2,142 SF home sitting on nearly a quarter acre lot. The home showcases a new roof, new electrical, new plumbing, new windows, new granite countertops, refinished original hardwood floors and a spacious first floor en-suite. This house originally only had 2 bathrooms, but a bathroom addition was included in the scope-of-work. All Building Permits on file.

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

This was a conservatorship and had to work with the DA's office in San Joaquin County. Nobody wanted the property because the original list price was too high. After being on the market for a long time and after numerous price reductions, I made my offer and negotiated a purchase price of $223.5K that was confirmed by the court.

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

It was on the MLS for a long time and kept a close eye on it as I was working on other projects simultaneously.

How did you finance this deal?

It was initially financed through hard money lending because I needed to leverage other people's money since I was doing multiple projects. Once I sold the other projects, I cashed out the lenders since there was no pre-pay penalty.

How did you add value to the deal?

This was not only a full rehab project, I also added a bathroom upstairs.

What was the outcome?

I made a gross profit of $66,500!:)

Lessons learned? Challenges?

Conservatorship and probate always take longer than you think. As most investors have experienced, my contractors and sub-contractors didn't always show up when they were suppose to.

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

Because I have my Broker's license, I put the entire deal together finding resources on my own. Without my license, I don't think I could have put the deal together.