Easy cosmetic flip purchased off-market

[Carly T. Nino]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $265,000
Cash invested: $53,821
Sale price: $466,500

Off market-lead from cold caller client/associate in Costa Rica. Cash invested includes all expenses: purchase closing costs, utilities, insurance, and assignment fee. Purchased using private money at 8%, no points. Profit before taxes was $107,618.31. The house was in amazing condition. It needed odor removal, paint, flooring in basement, grout cleaning and painting, as well as updated lighting throughout.

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

Renovations are not my main focus so I do not have a steady and reliable team. Because of that, unless the expected profit isn't conservatively $50,000 or higher, I generally will wholesale instead.

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

This deal came to me from a cold caller/previous legal client. His usual cash buyers were not able to purchase at this price point.

How did you finance this deal?

Private money

How did you add value to the deal?

Updated the look of the split level exterior with paint, updated to the farmhouse look per recommendation of one of the best realtors in that area.

Lessons learned? Challenges?

I learned that I will absolutely buy renovation projects in a new LLC or a land trust in the future.

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

Yes, my agent Leah Coleman. She is the most diligent agent I have worked with on numbers, and provides her research on comps and trends in the listing notes to educate other agents. Other agents would have listed this property for tens of thousands less based on unfamiliarity with the area and market trends.