1st Out of State Fix&Flip

[Zach Silverman]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $95,000
Cash invested: $64,250
Sale price: $215,000

SFR 4/2 B/b with 1,881 sqft.

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

I work as a Hard Money Lender and have been seeing the struggles in Los Angeles with flippers and was suggested to try different cheaper markets to get my start in investing.

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

This deal was brought to me by a friend of mine that was looking to partner up with. He works with an agent and contract that had the deal all locked up from one of their wholesalers. I was just the last piece coming in with money and being the entity on title.

How did you finance this deal?

I used Hard Money for the 85% of the purchase and had 100% of the rehab financed.

How did you add value to the deal?

We did about $50K worth of fixing up the house, sealing the basement, making the attic livable and built a 1 carport garage.

What was the outcome?

We were able to sell the property for $215K and sold it fast.

Lessons learned? Challenges?

Big challenge was dealing with mother nature, we got hit with a few snow storms that delayed a lot of things. The city took forever to approve out garage and there was a second wave of Covid that half the team got sick. We also didn't finish before Thanksgiving and dealt with the holidays and the coming of the New Year. Lesson to be learned, make sure you can finish before November.

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

I work with my own team that is an agent, her sister a contractor, they also have their own Property Management team and a group of wholesalers. Outside of investing I am a Loan Officer at Diamond Edge Financial and provide Hard Money Loans for investors in California mainly. I work with agents, other lender and brokers, investors and also Developers.