Easy Fix & Flip in Orange, MA!!!

[Olivia Grabka]

Investment Info:

Single-family residence fix & flip investment.

Purchase price: $25,000
Cash invested: $12,744
Sale price: $92,500

1. Purchased as a short sale from a specialized broker
2. Broker negotiated entirety of transaction, all we did was show to the closing
3. Renovations were cosmetic in nature, we did have to service & make some repairs to the heating system
4. The house itself was just overlooked by the market - it was always a good house at a really great price, but people passed on it for whatever reason; I think in general people are afraid of short sales

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

This was just my second flip!!! I was looking for something that was really low risk, this house was really cheap & the amount of work that it needed was minimal. I got really lucky because someone else should have bought it, but no one else did and I got to do a pretty easy project for my second deal.

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

I found it on the MLS through a specialty Agent, the Agent focused on short sales exclusively. I think the bank had already set a price for the sale, so the Agent walked me through making the offer and then a few months later we bought the house. The renovation took about two weeks.

How did you finance this deal?

Paid cash; I partnered with M3 Innovations, Inc. on the deal, I put up the purchase money and they put up the renovation money.

How did you add value to the deal?

We added value by making the house look pretty again. The house was just tired, because the owner was down and out for a little while. We were able to come in with fresh eyes and made the house look pretty again!!!

What was the outcome?

Our profit was right around $60K.

Lessons learned? Challenges?

We ran into a challenge reselling the house, we got the property under contract and the Buyer's Agent thought that we had misrepresented the size of the lot (we didn't). We think the Buyer got cold feet and was afraid we were going to keep their deposit, so they ginned up a complaint. Everything on the sales sheet was accurate and we agreed to allow the Buyer out of the sale, because there is no point being in a sale with someone that does not want to buy.