It's all about providing value!

[Jason Gilmore]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $205,000
Cash invested: $65,000

Contributors:
Jake Kain

Single family home in Casa Grande, AZ. Helped a former client avoid a foreclosure.

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

Wanted to do a flip to learn that side of real estate and the opportunity arose for us to take on a project. Had a partner who wanted to go in on the project with me!

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

A former client that I had worked with approached me about selling her property, after diving into it, it turned out she was facing foreclosure and the property was not in a condition to immediately sell. I brought in a partner and we discussed many options from subject to, BRRRR, flip, wholesale and we landed on buying to flip to sell.

How did you finance this deal?

30% down, Hard money for the remainder. We paid out of pocket for all repairs.

How did you add value to the deal?

We fixed several issues within the house, including holes in drywall, half paint jobs, broken windows and doors, as well as reestablished utilities and assessed and repaired any issues around that. Replaced flooring, fresh paint throughout and deep cleaned entire property.

What was the outcome?

House hit the market for $325,000! I will update upon sale

Lessons learned? Challenges?

Vet contractors and watch for red flags, overly pushy, overly eager, wants too much money up front.
Hard money isn't as cheap of an option as many investors make it out to be, had to come in with more money up front than we expected and they only lent 70% instead of 80% in the area we were working in.

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

BE Lending - Hard Money Lending
Myself - Agent
Jake Kain - Agent