Quick Buy and Fix Flip in Lexington

[Edgar Saborit]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $160,000
Cash invested: $25,000
Sale price: $235,000

This was a personal deal that I got from mailer. I helped the owners find a place to downsize and then fixed it up and sold it. Super quick turn around time (2.5 months beginning to closing).

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

The house was in great condition and the roof and HVAC were almost new, it only required cosmetic stuff and the numbers worked

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

I found it via a mailer in an area where I had sold a home recently. I set up an appointment with the sellers who were looking at downsizing. I asked what was most important to them and presented 3 different options with different pros and cons for them to choose. I offered to buy their house in cash and let them stay there for an extra 2 weeks to move stuff out once I had helped them find a place to move into. They chose that option which netted them less money but gave them better logistics

How did you finance this deal?

Used my HELOC to pay cash and fix

How did you add value to the deal?

Provided them with options based on their needs. Money was not their main priority, it was securing a place, having time to move and not having to fix stuff in their house. They also didn't want a bunch of strangers entering their home.

What was the outcome?

They were able to downsize within their budget and I made a successful quick turnaround deal that netted me $42K

Lessons learned? Challenges?

Always get to know who you are talking to and learn what's important to them. This one strangely had no challenges which is rare

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

I was the agent on the sale as well as the owner.