Fix and Flip in Indy ~$56K profit for investor

[Jacob Messer]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $49,900
Cash invested: $39,000
Sale price: $145,000

This was a great project and is one I will always remember.

The biggest challenge we overcame was reverting years of hording and smoking. There was an unbelievable amount of filth and trash in this home. More than all of the rooms combined was the trash that had accumulated in the basement.

Needless to say; we had to get rid of all of that, rip out all the floors and applied SO MUCH Killz.

We knocked out a kitchen wall (classic move) and did all the usual stuff to make this house sellable.

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

The area was halfway decent and I love when we can go in with a little love and completely turn the place around. There was nothing objectively wrong with this house other than the big 3 utilities needed replaced and tons of trash needed removed. The value is there in homes like this if you know what to look for and how to execute.

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

The property group I partner with sold the house on contract and we got the renovation job.

How did you finance this deal?

not sure what this investor did.. I think he had cash.

How did you add value to the deal?

Time is money and we got in and out on this one. Timeline was to perfection and we didn't waste any money.

What was the outcome?

Our investor bought a smokey trash filled 3 bedroom and in a few months sold it for over ~$50K profit.

Lessons learned? Challenges?

Don't smoke ; don't accumulate trash either