My first flip ( wholetail ) with my wholesale business partner

[Katlyn Krystinak]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $120,000
Cash invested: $20,000
Sale price: $250,000

My first flip! Quick cosmetic flip in the Silver Valley.

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

I wanted to experience the ins and outs of a flip so that I could share my experience with my investor clients and our investor network.

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

This was a wholesale deal that we got under contract with my wholesale business, Property Chicks. We send post cards to distressed properties. We calculated our offer based on a conservative estimate of ARV and a high estimate on repair costs. To our surprise, the house was in much better condition that we anticipated. So, instead of wholesaling this deal to an investor, I saw the opportunity to make a bigger profit by taking it on.

How did you finance this deal?

Private Money

How did you add value to the deal?

The major value add was taking on the tenants and working with them so that the previous owner did not have to worry about being a landlord anymore. We decided to work with them ( the tenants ) and on a time line that worked for them to move out. We incentivized them by giving them "cash for keys" for moving out in time and clearing out their property. Then we were able to deep clean, paint interior and exterior, replace some appliances, and do some electrical updates.

What was the outcome?

Sold for more than we anticipated with less work!

Lessons learned? Challenges?

Invest in areas where your ARV can be low enough to attract FHA and VA Buyers. Challenge was to wait until the 90 day VA seasoning period to sell a flip had passed.

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

I am an agent so I sold it myself!