1st fix and flip with zero out of pocket money

[Erik Chu]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $200,000
Sale price: $375,000

3 bed 2 bath, 1,479 sqft single family home. previous owner neglected rental. complete gut and reno. 70 % of the work was completed by my wife and I.
seller financed at 3.5% 6 month term with $100,000 private lender that covered a $50,000 down and $50,000 repair budget at 5% interest and a 6 month term.

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

This deal caught my interest only because the seller was willing to finance

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

it was brough to my attention by a colleague. negotiated a quick turn around in order to secure a seller finance deal and to secure a private lender

How did you finance this deal?

seller financed and other peoples money

How did you add value to the deal?

quick turn around, full renovation, kitchen and bath expansion

What was the outcome?

successful, full asking price and done on time

Lessons learned? Challenges?

learned to negotiate with contractors, learned that most of the work needed can be done myself, learned city building codes and how to get creative to find deals on materials