SoCal Duplex fix & flip

[Lara Gonzalez]

Investment Info:

Small multi-family (2-4 units) fix & flip investment.

Purchase price: $370,000
Cash invested: $74,000

In escrow on a duplex in the Muscoy area of San Bernardino. Our close date is 2/18/22. Partnered with the person who brought the deal to me. I am covering half of the costs and I will be managing the rehab.

The front unit will be 3BD/1BA. Back unit TBD. We are estimating the rehab will take one month. We are planning to list it for $530,000 after we are done. Pictures and more to come!

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

In 2019 I flipped another duplex in the same area so this appealed to me right away.

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

My insurance agent has clients who go to him when they have properties to sell. He had a client come to him with a property that is in a family trust that they wanted to sell. They had an appraisal done beforehand that came in at $370,000 in the current condition. We tried to negotiate for a slightly lower price but the family wouldn't budge so we agreed to a purchase price of $370k.

How did you finance this deal?

We are using a hard money lender who is financing 80% of the purchase price.

How did you add value to the deal?

We are completely gutting the property and remodeling it.

What was the outcome?

TBD

Lessons learned? Challenges?

Getting a loan for the rehab portion.

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

I am a real estate agent so I represented myself. I used Mark with Trimark Funding as my hard money lender. This is my second time personally using him but I have had many other investors use him as well.