From Burnt to Built!

[Josh Middendorf]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $30,000
Cash invested: $450,000

I Bought this lot after the previous home had caught fire and been completely destroyed. I have demoed the burnt home and have started the rebuilding process. I plan to have a 4 month turn around, then sell the home to a interested buyer.

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

By having a Family construction company I have learned all aspects of the industry and feel comfortable with new construction investing.

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

I found this deal off-market from word of mouth. I negotiated it using the existing burnt home as a price point to allow me to get the initial lot price down considerably.

How did you finance this deal?

Construction loan.

How did you add value to the deal?

By rebuilding a new home in a full neighborhood with very few lots available.

Lessons learned? Challenges?

I have already learned how hard it is to manage and control every aspect of the project.