First Long-distance Fix and Flip in Clarksville TN

[Jennifer Jackson]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $99,000

I am partnering with an investor who lives in another state and we are doing a long-distance fix and flip. The home is a SFH with 2 beds/2 baths. We appraised for $240,000 with the basement being finished.

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

I saw an opportunity that happened to come across my path that fit my qualifications, so I jumped on it.

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

I joined a community of other investors and one had posted an opportunity to be a partner on a fix and flip. I was ready to jump into something quickly and felt it was a good move for me to gain experience from another investor. I contacted the investor right away and told her that I had the capital she was looking for. She wanted to partner with me because she thought it would be a good learning experience for me.

How did you finance this deal?

My partner was able to get a hard money loan for the purchase price as well as the rehab costs. I helped with the Earnest money (EMD) and the Closing costs.

How did you add value to the deal?

We are updating all rooms, replacing appliances, roof, flooring, doors and had to fix septic (unexpected cost).  

What was the outcome?

We just closed 4/1/22 and hope to complete everything by end of June 2022.

Lessons learned? Challenges?

The property is in a Rural area so we had to get a septic inspection completed and there needs repair done. It was unexpected costs we were not looking to do. We also planned to finish the basement, but with the extra costs, we will not finish the basement. So, appraisal will come out different once we are done.

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

We are working with a real estate agent and general contractors.