Bought and sold off market in Edison, NJ

[Jasmin Elalfy]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $375,000
Cash invested: $60,000
Sale price: $510,000

We purchased this deal from a Wholesaler, it was a probate seller. The kitchen was already renovated however everything else needed full renovation and we also added a full bedroom & bathroom allowing for us to realize more equity from the deal.

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

This was an interesting deal because we did not have to redo the kitchen so it cut our construction time in half.

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

We found the deal through a wholesaler it was his first wholesale deal so we definitely had to do a lot of handholding but we took over the transaction and made sure that it close.

How did you finance this deal?

Hard money

How did you add value to the deal?

Full reno (except kitchen), added bedroom & bathroom, removed above ground pool

What was the outcome?

The deal ended up being profitable, this was the first time we had three partners however everybody made a little over 100% ROI! We were able to have a 2 month holding period because as we were doing the construction, a guy walking by the house made us an offer & we went UC with him during the construction.

Lessons learned? Challenges?

Always know the CO and permitting laws in your area that you’re flipping in, we had a lot of trouble closing out permits and obtaining the CO when we purchased the property Because the previous seller who was deceased had three open permits and we were responsible to get them closed out.