Using my First Flip to get out of Retail

[Landon Stone]

Investment Info:

Single-family residence fix & flip investment in Carroll.

Purchase price: $78,000
Cash invested: $27,000
Sale price: $184,900

In 2017 I decided I wanted to go all-in to real estate and all-out of my current retail job. I used a hard money lender and a local agent and we purchased a deal off the MLS. After about 5 months of rehab, all done by myself and my family, we sold for more than asking on the first weekend on market. This allowed my to put away 6 months of reserves and pursue a career as a Real Estate Agent & Wealth Advisor full-time.

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

I wanted something that I could make enough money to replace my W-2 income long enough to get going in RE Sales.

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

It was listed for $95k on the MLS, had been on the market for somewhere around 6 months. It was in decent shape, it was just severely dated and needed to be opened up and brought into the new century.

How did you finance this deal?

I used a Hard Money Lender. Apx $16k down and a $1300 monthly interest only payment until sold.

How did you add value to the deal?

We did Everything with the exception of replacing the roof and the HVAC. We completely gutted and reworked both bathrooms and the kitchen. We turned the two small living rooms and sectioned off kitchen into one large open concept.

Lessons learned? Challenges?

I've never done all the work myself again. I could have hired it out and had it complete in half the time, while being able to focus on other aspects of my business. It was extremely stressful doing it this way, even though it maximized profits here, I could have focused my time on management and finding other jobs or clients making up for the money we would have paid to contractors.